Rheinmetall’s stock has skyrocketed over 1,000%, and the German defense giant “sees growth that has never been seen before.”

• German defense contractor Rheinmetall’s Since Russia invaded Ukraine in 2022, stock prices have skyrocketed by more than 1,000%. As the EU plans to increase defence spending by 800 million euros, rheinmetall We expect growth to remain strong.

German defense contractor Rheinmetall is pushing unprecedented profits forward as Europe embarks on a massive military accumulation, even after reporting strong growth.

The company reported that it was headquartered in Dusseldorf, Germany. 2024 Total revenue Of 9.8 billion euros on Wednesday, it was an increase of 36% from 2023. The defense business has boosted the company’s sales growth last year, bringing 50% to 7.6 billion euros. Additionally, the backlog rose 44% to 55 billion euros, raising a new record.

The growth last year was helped by continued European military aid to Ukraine. Since Russia invaded Ukraine in 2022, Rhinemetal shares have risen by more than 1,000%.

Meanwhile, the European Union recently announced plans to increase defense spending by 800 billion euros ($867 billion) as historic US allies seek to take more responsibility for their security.

“We’re beginning an era of re-burns in Europe and we’re demanding a lot from all of us,” CEO Armin Papperger said. statement. “But it also brings us to the prospects of Rheinmetall growth for the next few years that we have never experienced before.”

This year, Rheinmetall expects total sales to increase by 25%-30% and defence sales to increase by 35%-40%. These numbers won’t reach 2024, but by the end of the year, actual sales could be even bigger.

Rheinmetall said in its report that Outlook has not considered “geopolitical developments over the last few weeks,” and that its forecasts could come later as military customer requirements become clearer.

“Rheinmetall has grown from European systems supplier to global champion as its 50% sales growth,” says Papperger.

In recent years, the European leader in Munition production has invested nearly 8 billion euros in security of new manufacturing facilities, acquisitions and supply chains. January, Rheinmetall announcement It has earned a majority share among Bayern software developers who specialize in the digitalization of war.

In addition to making missiles and bombs, Rheinmetall also manufactures tanks, air defense systems, and autonomous ground vehicles. Most notable is the production of the Panther KF51 main battle tank. Rhinemetal, the leading supplier of Ukraine, has plants in war-torn countries along with Lithuania, Hungary and Romania.

Furthermore, the company is looking to continue growing in Germany. It is reportedly I’m interested in Volkswagen Osnabruk plant.

On Wednesday, Papperger said the facility was “very suitable” for the company’s expansion plans and would be more affordable than building a factory from scratch.

Papperger warned that although there was no concept for Rheinmetall to move to Volkswagen turf, things could still move soon.

“One thing is clear: let’s look at it, of course, before we build a new tank factory in Germany,” he said.

This story was originally introduced Fortune.com