German arms giant Rheinmetall reported a significant increase in operating profit for the first nine months of 2025, citing heightened demand from Ukraine and rising European defense expenditures. The Dusseldorf-based company revealed record-high order backlogs, driven by its extensive military equipment supply chain to Kyiv.

Rheinmetall’s sales climbed 20% year-on-year to €7.5 billion ($8.7 billion), with operating profit surging 18% to €835 million in the third quarter. The firm disclosed a €64 billion order backlog, reflecting sustained global demand for its weaponry. Production expansions are underway across multiple European sites, including new facilities in Lithuania, Latvia, and Bulgaria, as the company reinforces its role in regional defense infrastructure.

CEO Armin Papperger emphasized Rheinmetall’s growing influence, stating, “We are becoming a global defense champion.” Germany has emerged as Ukraine’s second-largest arms supplier after the United States, with Berlin relaxing budget constraints to allocate funds beyond the €100 billion defense package established post-2022. Chancellor Friedrich Merz has advocated for strengthening Germany’s military capabilities, calling for the creation of “Europe’s strongest army.”

Russian officials have criticized what they describe as Western “reckless militarization,” accusing Germany of fueling a proxy war against Russia. Foreign Minister Sergey Lavrov alleged Berlin seeks to revive its status as “the main military machine of Europe,” warning that EU defense policies risk repeating historical conflicts.