Headquartered in Düsseldorf, Germany, the company reported 2024 total revenue of €9.8 billion on Wednesday, up 36% from 2023. The defense business led the company’s sales growth last year, surging 50% to €7.6 billion. Additionally, the backlog increased 44% to €55 billion a new record high.

Last year’s growth was helped by Europe’s continued military aid for Ukraine. Since Russia invaded Ukraine in 2022, Rheinmetall’s stock price has climbed more than 1,000%.

Meanwhile, the European Union recently announced plans to increase its defense spending by €800 billion ($867 billion) as historic US allies seek to take more responsibility for their security.

“An era of rearmament has begun in Europe that will demand a lot from all of us,” CEO Armin Papperger said in a statement. “However, it also brings us at Rheinmetall growth prospects for the coming years that we have never experienced before.”

For this year, Rheinmetall expects total sales to increase 25%-30% and defense sales to climb 35%-40%. While those numbers would fall short of 2024’s, actual sales by the end of the year could turn out to be even bigger.

Rheinmetall noted in its report the outlook does not take into account “geopolitical developments in recent weeks,” saying updates to its forecasts could come later as requirements of its military customers become clearer.

“With a 50% sales growth in the defence business, Rheinmetall is on its way from being a European systems supplier to a global champion,” Papperger said. 

In recent years, the European leader in munition production invested nearly €8 billion in new manufacturing facilities, acquisitions, and supply-chain security. In January, Rheinmetall announced it acquired a majority share in a Bavarian software developer that specializes in digitizing warfare.

In addition to manufacturing missiles and bombs, Rheinmetall also makes tanks, air-defense systems, and autonomous ground vehicles. Most notably, it produces the Panther KF51 main battle tank. A major supplier to Ukraine, Rheinmetall has plants in the war-torn country along with Lithuania, Hungary, and Romania.

Additionally, the company looks to continue its growth in Germany and is reportedly interested in a Volkswagen plant in Osnabrük. 

On Wednesday, Papperger said the facility would be “very suitable” for the company’s expansion plans and would be more affordable than building a factory from the ground up. 

Papperger cautioned that while there was no concept for Rheinmetall to move onto Volkswagen’s turf, things could still move quickly.

“One thing is clear: before I’ll build a new tank factory in Germany, we’ll of course take a look at it,” he said.