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Publication date: September 10, 2025
Rheinmetall AG is a leading German company in defense and automotive technology and has belonged to the DAX-40 since 2023. In recent years, the company has developed into one of the most important players in the European defense sector, thanks in part to the sharp increase in demand for military vehicles and ammunition. In this article, you can read all about Rheinmetall shares: share price, performance, corporate strategy and outlook for 2025. Would you like to receive weekly updates on European stocks? Then subscribe to our newsletter here and stay informed.
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- Year of establishment: 1889
- Year added to the DAX 40: 2023
-Highest price ever: €1944 June 2025
- Average trading volume: Approximately 238,000 shares per day
- Price performance over the past 12 months: +257.36%
Introduction about the company
Rheinmetall AG has its headquarters in Düsseldorf, Germany. Rheinmetall is an international technology group focused on defense solutions and high-performance automotive components. The company produces armored vehicles, ammunition, air defense systems and engine components, among others. The defense branch in particular has become the core business in recent years, thanks to increasing orders from Europe and NATO countries.
Key figures & achievements
In 2024, Rheinmetall achieved sales of €9.75 billion and a net profit of €1.36 billion. The market capitalization in June 2025 was around €18 billion. Remarkable is the share price development: the share rose by more than 257% in the last 12 months and reached a record high of €1,944 in June 2025. This places Rheinmetall among the absolute outliers of the DAX.
History & development
Founded in 1889, Rheinmetall began as a producer of metal products and munitions. During the 20th century, the company grew to become an important supplier to the German defense industry. In the following decades, Rheinmetall expanded its business to include automotive technology, including engines and components. Its inclusion in the DAX 40 in 2023 marked a new phase, with the company increasingly seen internationally as a strategic defense solutions provider, especially after Europe's renewed focus on security and defense since 2022.
Sector & competition
Rheinmetall operates in the defense industry, a sector that has attracted considerable attention in recent years due to geopolitical tensions and increased defense budgets. The company competes with international names such as BAE Systems, General Dynamics and Thales. The market is characterized by long order books, high barriers to entry and strong dependence on government budgets. Rheinmetall stands out for its broad product portfolio and innovative approach to modern warfare, including drones, air defense and cyber security.
Influence of Rheinmetall on the DAX 40
With a weighting of 4.73% (measured in June 2025) within the DAX-40, Rheinmetall occupies a solid position. Movements in the price therefore, have a noticeable impact on the index's returns. Especially developments in geopolitical tensions, defense budgets and international contracts have a direct impact on the stock's valuation. View the composition of the DAX 40 and the weighting of all companies in the DAX 40 here.
Investment analysis & outlook
Rheinmetall shares showed a price increase of more than 250% over the past 12 months, making it by far the strongest riser within the DAX 40. The chart makes it clear that this is not a short-lived uptrend, but part of a massive growth movement underway since 2022. While the DAX rose about 75% during that period, Rheinmetall shot up more than 1,700% - an exceptional achievement for an industrial group.
The main driver behind this explosive growth is the structurally higher demand for defense equipment following the Russian invasion of Ukraine in 2022. European countries massively increased their defense budgets, and Rheinmetall positioned itself as one of the biggest profiteers with mega-contracts for ammunition, armored vehicles and air defense systems. This led to full order books and record profits, leading investors to value the stock ever higher.
Looking ahead, Rheinmetall continues to benefit from its global focus on security and defense. The company is also investing in innovative technologies such as drones, AI-driven air defense and hybrid drives for military vehicles. Although valuations are now high and corrections cannot be ruled out, the stock remains attractive to investors looking to capitalize on the structural trend of rising defense spending.
News & updates
In 2025, Rheinmetall announced the opening of new plants in Eastern Europe to meet the rising demand for ammunition and armored vehicles. In addition, the company signed major contracts with the German and French governments to supply air defense systems. Rheinmetall also announced investments in sustainable production techniques, responding to the growing demand for more environmentally friendly solutions within the defense sector.
With this long-term strategy, Rheinmetall continues to establish itself as a leading player within the global defense and security industry. More information about the company can be found at: www.rheinmetall.com
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.
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