German arms companies make historic jump in profits due to Ukraine war
Germany’s military manufacturing companies have seen unprecedented growth over the past year, driven by rising demand for weapons, ammunition and defense systems as the war in Ukraine continues and security concerns in Europe grow.
According to the latest report by the Stockholm International Peace Research Institute (SIPRI), the revenues of Germany’s largest arms companies — including Rheinmetall, Diehl, Hensoldt and ThyssenKrupp Marine Systems — jumped 36% to about $14.9 billion (€12.9 billion).
The report notes that EU countries have intensified their purchases of military equipment since the beginning of the war in Ukraine, making German companies one of the biggest beneficiaries of the wave of rearmament, especially in the areas of air defense systems, ammunition, and armored vehicles.
The revenues of the 26 largest European companies included in the report also increased by 13% compared to the previous year, in a clear sign of the widening arms race on the continent.
According to the report, the continued demand for weapons suggests that the European defense sector will remain in a state of expansion in the coming years, despite the escalating political debate over governments’ reliance on military manufacturing as a means of enhancing security.
