Rheinmetall announced an increase in sales for the first quarter compared to the same period last year and expects the growth momentum to strengthen further in the next reporting period.

The German defense giant disclosed on Thursday that its sales for the first quarter ending in March reached €1.94 billion (equivalent to $2.28 billion), representing an 8% year-on-year increase. However, this figure fell short of the market consensus estimate of €2.27 billion compiled by the research firm Wall Street.

Earlier this week, the Frankfurt-listed company had released preliminary figures, stating that its order backlog as of the end of March grew by 31% to approximately €73 billion.

Rheinmetall's Chief Executive Officer indicated that due to substantial orders in its naval and vehicle systems divisions, coupled with the full restoration of operations at its ammunition plant in Murcia, Spain, following an explosion last year, the company anticipates stronger growth in sales and new orders in the second quarter.

The company reported a net profit of €111 million for the period, up from €84 million in the prior-year period. Quarterly operating profit, a key metric closely watched by analysts and investors, stood at €224 million, with the operating margin improving to 11.6% from 10.5% a year earlier.

Market analysts had previously forecast an operating profit of €261.9 million and an operating margin of 11.6%.

Rheinmetall also confirmed that it is maintaining its performance outlook for 2026. The company expects full-year sales to grow to a range of €14 billion to €14.5 billion, with an operating margin of around 19%.