Over the first three months of 2025, Rheinmetall made total revenues of 2.3 billion euros ($2.6 billion), up 46 percent on the same period last year.

The group's operating income, a closely watched measure of underlying profitability, likewise sat at 199 million euros, up 49 percent on 2024.

Both figures were considerably above market expectations, as European moves to rearm lifted the domestic defence industry.

Analysts surveyed by the financial data firm FactSet had expected Rheinmetall to report first-quarter revenues of 1.9 billion euros and an operating profit of around 150 million euros.

US President Donald Trump's return to office at the beginning of the year has raised fears in Europe over the strength of Washington's security guarantees.

The uncertainty has pushed European government's to up their defence spending in the face of the potential threat from Russia.

In Germany, the incoming government has laid the ground for a massive increase in defence spending that could total hundreds of billions of euros.

Rheinmetall said it had seen orders through new and existing contracts almost triple to 11 billion euros in the first quarter.

The 181-percent rise compared with the same period last year was "primarily attributable to orders from Germany", the group said.

The extra work took Rheinmetall's order backlog to an "all-time high" of 62.2 billion euros it said.

Despite the better than expected result, Rheinmetall left its forecasts for the year untouched, projecting an increase in revenue of 25 to 30 percent.

The outlook however "does not yet take into account the improvement in market potential that is likely to arise... as a result of the geopolitical developments in recent weeks", Rheinmetall said.

This was particularly true for the group's key markets "Europe, Germany, and Ukraine", it said.

Rheinmetall's full first-quarter results will be published May 8.

sea/yad

RHEINMETALL