Discussion underway for Rheinmetall's potential civil power division sale
Hop on the News Bandwagon: Rheinmetall, a powerhouse in the arms industry, might be looking to part ways with its civilian division, Power Systems. Armin Papperger, the company's CEO, hinted at the prospect during his online speech for the annual general meeting on May 13. "We've been fielding inquiries from potential buyers for some time and are in talks with them," Papperger revealed. "All inquiries receive thoughtful consideration," he added.
The (Not-So) Compelling Attraction: The payload for the wobbling automotive sector is no longer part of Rheinmetall's core operations, Papperger asserted. The company is pushing to repurpose individual plants of the division for armament manufacturing: "We aim to convert these sites to serve the security and defense industry, ensuring our employees secure futures," he said, confirming the transition for sites in Neuss and Berlin.
Kickstarting the (Satellite) Launch: Neuss's plant, designed for civilian production and employing roughly 1,500 people, is already taking strides in this direction. Rheinmetall is aligning with the Finnish firm ICEYE to set up a joint satellite production venture. From the second quarter of 2026, the Neuss plant, among other sites, could start churning out satellites, according to recent announcements from Rheinmetall [ntv.de, rts].
Boom on the Battlefield: Rheinmetall's defense business is seeing a spike in sales, with a 46% increase in group sales in the first quarter of 2025, reflecting a 73% increase in the defense business – all driven by geopolitical tensions and increased military spending in Europe [2][3]. The company projects a sales growth of 25% to 30% and an operating result margin of around 15.5% for 2025 [3][4].
While there's no confirmation on the possible buyers or the involvement of Power Systems in satellite production, the civil division faces challenges due to the weakness in the automotive industry and project delays [3][5].
- Rheinmetall's CEO, Armin Papperger, hinted at the potential sale of the company's civilian division, Power Systems, after fielding inquiries from potential buyers for some time.
- Rheinmetall is repurposing individual plants of the Power Systems division for armament manufacturing, such as the Neuss and Berlin sites, to secure the futures of their employees.
- Rheinmetall is aligning with the Finnish firm ICEYE to set up a joint satellite production venture, with the Neuss plant expected to start churning out satellites from the second quarter of 2026.
- Rheinmetall's defense business is experiencing a surge, with a 46% increase in group sales in the first quarter of 2025 and a projected sales growth of 25% to 30% for 2025, due to geopolitical tensions and increased military spending in Europe.
