German Defense Giant to Sell Automotive Assets, Boost Defense Business
Rheinmetall, a German defense manufacturer, expects to reach €14.5 billion in sales in 2026, up 45% from 2025. The company plans to sell its commercial automotive assets to focus on its defense business, which has seen a significant increase in demand. Rheinmetall’s consolidated sales rose 29% to €9.9 billion in 2025, and the company has set a new backlog record valued at €63.8 billion. This growth is driven by major high-volume orders, including €32 billion in domestic orders and €56 billion for joint ventures. Rheinmetall’s CEO, Armin Papperger, has warned that Germany must not develop an inferiority complex with the US to deliver on an urgent European-wide rearmament program and become a reliable partner to Washington. The company’s expansion into new areas like digitalisation, drone, and satellite technologies may support customer requirements and enhance its competitive position. However, the decision to sell commercial assets may signal a reduction in the company’s overall revenue and market share. This information was first reported by Breaking Defense.