Rheinmetall shares rose by more than 1000 %, and the German defense giant sees a growth “we have not experienced before”

• German defense contractor Rheinmetall’s The share price has increased by more than 1,000 % since Russia invaded Ukraine in 2022. The European Union plans an increase of 800 billion euros in defensive spending, Rheinmetall expects growth to remain strong.

The German defense contractor Rheinmetall sees unprecedented gains at the forefront as Europe begins a huge military accumulation, even after reporting the already strong growth.

Its headquarters in Dusseldorf, Germany, the company mentioned 2024 total revenue From 9.8 billion euros on Wednesday, an increase of 36 % over 2023. The defense company led the company’s sales growth last year, increasing by 50 % to 7.6 billion euros. In addition, accumulation increased by 44 % to 55 billion euros as a new record.

Last year, growth was helped by continuing military aid in Europe for Ukraine. Since Russia has invaded Ukraine in 2022, the Rheinmetall share price increased by more than 1000 %.

Meanwhile, the European Union recently announced plans to increase its defensive spending by 800 billion euros (867 billion dollars), as historical American allies seek to take more responsibility for their security.

CEO Armin Babbarger said in A. statement. “However, it also brings us the horizons of Rheinmetall’s growth for the coming years that we have not experienced before.”

For this year, Rheinmetall expects total sales to increase by 25 % -30 % and defense sales increase by 35 % -40 %. Although these numbers will decrease to 2024, actual sales by the end of the year may be greater.

In its report, Rheinmetall noted that Outlook does not take into account “geopolitical developments in recent weeks”, saying that her expectations may come later with the clarity of the requirements of its military customers.

“With 50 % sales growth in defense work, Rheinmetall is on his way from being a European systems supplier to a world champion,” said Babbarger.

In recent years, the European leader has invested in ammunition production nearly 8 billion euros in new manufacturing facilities, acquisitions, and the security chain security. In January, rheinmetall Declare She got a majority share in the Bavarian programs developer specializing in war numbering.

In addition to manufacturing missiles and bombs, Rheinmetall also makes tanks, air defense systems and independent ground vehicles. The most prominent is that it produces the main battle tiger tiger KF51. A major resource for Ukraine, Rheinmetall contains plants in the war -torn country alongside Lithuania, Hungary and Romania.

In addition, the company is looking forward to continuing its growth in Germany and reports it is interested in the Volkswagen Factory in Osnabrük.

On Wednesday, Babbarger said that the facility will be “very suitable” for the company’s expansion plans and will be more expensive than building a plant from A to Z.

Babberger has warned that although there is no concept of Rheinmetall to move to Volkswagen herb, things are still moving quickly.

He said: “There is one clear thing: before I built a new tank factory in Germany, we will look at it, of course.”

This story was originally shown on Fortune.com