📈 The European defense industry is experiencing huge growth and Rheinmetall has announced a new contract with Ukraine! 🚀
Europe is becoming a key player on the global defense industry scene, as confirmed by the recent move of the German company Rheinmetall $RHM.DE. The company has signed a major contract with the Ukrainian Ministry of Defense for the supply of 155mm caliber artillery ammunition, with the first deliveries scheduled for early 2025. This deal, fully funded by the Ukrainian budget, is further evidence of the growing cooperation between European arms manufacturers and Ukraine. 🌍
🔧 Long-term investment in infrastructure
But the cooperation does not stop at ammunition supplies:
Ammunition factory in Ukraine: Rheinmetall plans to start operations in 2026which will give the country greater self-sufficiency in munitions production.
Production of Fuchs armoured vehicles: The four new factories will help strengthen Ukraine's military capacity while opening the door for further export opportunities.
20 Marder 1A3 infantry fighting vehicles: Delivery financed by the German government (approx. €15 million each) will be completed in the first half of 2025.
📊 This growth also comes thanks to Donald Trump, who proposes to increase defense spending in countries NATO to at least 5% OF GDP. If countries NATO don't pay the minimum required, Donald Trump is threatening to pull out USA from the alliance. If this initiative becomes a reality, European companies can expect an even higher volume of orders, not only from member states NATObut also from other allies.
Rheinmetall and other European arms companies are moving to the forefront of global affairs.
Do you see potential in the arms industry for 2025 and beyond?
The growth is incredible and the company has interesting orders, but the P/E is too high.