Ukraine Tops Global Arms Imports as European Demand Surges, Boosting Rheinmetall's Stock

Ukraine has emerged as the world's largest arms importer over the past five years, with imports increasing nearly 100-fold from 2020 to 2024 compared to the 2015-2019 period, according to a report by the Stockholm International Peace Research Institute (SIPRI). This surge in arms imports is attributed to the ongoing conflict with Russia, which has driven Ukraine to seek substantial military support. Ukraine's arms imports accounted for 8.8% of global transfers during this period. European countries have also significantly increased their arms imports, with a 155% rise over the same period, largely due to heightened security threats following the Russia-Ukraine war. The United States has been the primary supplier, accounting for 64% of the arms imported by European NATO members and increasing its share of global arms exports to 43%. India, the second-largest arms importer, saw its imports decrease to 8.3% of global imports. The increased demand for military equipment has led to a notable surge in the stock prices of European defense companies. Rheinmetall, a German defense giant, has seen its shares rise by 660% over three years, reflecting the heightened military spending across Europe. In 2024, Rheinmetall reported a profit increase to 717 million euros and sales of 9.751 billion euros. The company's growth is driven by orders from NATO countries and Ukraine, with its order book reaching a record high of 55 billion euros. Rheinmetall forecasts a sales increase of 25-30% for 2025.