Rheinmetall AG: Initiation of Coverage- Game-Changing Lockheed Partnership Unlocks €5 Billion Opportunity! 

Rheinmetall AG’s latest quarterly performance presents a dynamic portrait of both progress and challenges. The company reported substantial growth primarily in the defense sector, with sales increasing by 33% to EUR 1.795 billion, leading to an impressive operational margin of 11.5%. However, Rheinmetall’s civilian business remains stagnant, failing to reach similar profitability levels. Key positives from the earnings report include an 8.7% operational margin for the group and an operational free cash flow growing by EUR 454 million year-on-year. Rheinmetall’s defense sector backlog increased by 56% to over EUR 62 billion, bolstered by significant contracts in areas like air defense, digitization, and ammunition, emphasizing the company’s strong focus on defense as geopolitical tensions in Europe prompt increased military spending.