Rheinmetall Chief Executive Officer Armin Papperger said he’s confident about achieving ambitious 2030 targets for profitability and revenue, helped by the streamlining and expansion of its ammunition production.
“I absolutely believe that we are able to make it happen,” Papperger said in an interview on Tuesday when asked about reaching a 20% profit margin on projected sales of €40 billion to €50 billion in 2030. “I think we are in good shape,” helped by significant investments to digitise production and lower costs.
Revenue at Rheinmetall, which supplies weaponry ranging from ammunition to tanks and armoured vehicles, came in at just under €10 billion last year. The company is a central player in Europe’s effort to bolster its defence industry, as governments prepare to unleash trillions of euros on rearmament.
That central role has contributed to a near tripling of Rheinmetall shares this year, valuing the Duesseldorf-based company at US$97 billion and making it the best performer in Germany’s blue-chip DAX Index.
Papperger said he isn’t worried about the risk of European governments taxing windfall profits from military orders, adding that the company’s performance is what matters to investors. “There is a lot of headroom at the moment, also for market capitalisation,” he said.
Rheinmetall is a crucial partner for Ukraine, most importantly in providing ammunition in its bid to repel Russia’s 2022 invasion.
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It’s also expanding in air defence. That area came to the fore again after Poland shot down drones in the early hours of Wednesday that had crossed into its territory during Russia’s latest massive air strike on neighbouring Ukraine.
Papperger on Tuesday voiced scepticism that a ceasefire could be reached between Russia and Ukraine. With Russian President Vladimir Putin having “nothing to lose,” security will be a priority for Europe over the next 10 to 15 years, he said.
“I would be very, very happy if we have peace in Europe and if the Russians no longer will attack the Ukrainians,” he said. “But I am not confident that it will happen.”
