Rheinmetall benefits from defense demand and strong growth but faces high valuation and geopolitical uncertainty. Find out ...

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Rheinmetall has agreed with Finland's ICEYE to form a joint venture to make military satellites, part of a drive to repurpose automotive factories to serve the booming defence sector instead.

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Rheinmetall has been contacted by potential buyers of its civilian businesses and is in talks with them, as the German defence contractor seeks to focus on its booming military business, its CEO said.

The joint venture with ICEYE will focus initially on manufacturing Synthetic Aperture Radar (SAR) satellites before expanding to other space capabilities.

Germany’s biggest arms manufacturer continues to expect an increase of 35% to 40% in sales, but said guidance could be upgraded if an expected surge in demand for military equipment was confirmed.