In a significant vote of confidence for Germany’s premier defense contractor, Goldman Sachs has increased its voting rights stake in Rheinmetall AG beyond the 5% threshold. This strategic move by one of the world’s most influential investment banks coincides with the Düsseldorf-based company securing multiple high-value military contracts across NATO nations, reinforcing its position in the global defense landscape.
Strategic Investment Expansion
Goldman Sachs has elevated its position in Rheinmetall, raising its voting rights ownership from 4.94% to 5.04%. Particularly noteworthy is the substantial growth in positions held through financial instruments, which jumped from 3.94% to 4.66%. This deliberate accumulation signals strong institutional belief in the defense manufacturer’s continued growth trajectory and market potential.
NATO Medical Systems Contract
Simultaneous with Goldman’s increased investment, Rheinmetall announced a major framework agreement with Germany’s armed forces valued at over €300 million. The contract covers highly mobile, armored medical facilities designed to NATO specifications, with deliveries scheduled to commence in 2029.
Key aspects of this pioneering medical systems agreement include:
- Unmatched Capability: No comparable NATO system currently offers equivalent mobility combined with advanced protection features
- Critical Care Functionality: Enables emergency surgeries and intensive care treatment in close proximity to mechanized ground forces
- Long-Term Partnership: The framework extends through 2040, with options for additional systems
- Multinational Deployment: Initial deployment planned for Germany’s Lithuanian-based brigade
These medical facilities will utilize Rheinmetall MAN Military Vehicles’ proven HX truck platforms, with each medical unit comprising eleven vehicles.
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Expanding Global Footprint
Beyond the Bundeswehr agreement, Rheinmetall has formalized strategic partnerships with Poland’s Grupa Zbrojeniowa and Texas-based chemical manufacturer Solugen. The company also secured a separate three-digit million-euro contract for its Skyrner 35 air defense systems destined for Ukraine.
Concurrent with these developments, American Rheinmetall Defense showcased advanced technologies at the AUSA 2025 exhibition in Washington, including the Lynx XM30 combat vehicle and unmanned ground systems for the U.S. Army.
Record Financial Performance
Rheinmetall’s expanding contract portfolio reflects in its financial metrics. The company achieved record revenue of €9.75 billion in 2024, generating operating income of €1.478 billion. Its order backlog reached an impressive €55 billion, providing substantial revenue visibility.
CEO Armin Papperger characterizes the company’s evolution “from European systems supplier to global champion” within what he terms an “era of rearmament.” Management forecasts revenue growth between 25% and 30% for 2025, with defense segment growth projected at 35% to 40%.
The combined confidence demonstrated by Goldman Sachs’ increased investment and Rheinmetall’s continuous stream of major contracts validates this optimistic outlook. With a €55 billion order backlog and commanding position in the expanding global defense market, Rheinmetall appears strategically positioned for sustained growth in the coming years.
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