Rheinmetall Ag Unsp/Adr (RNMBY) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you very much. Good afternoon, ladies and gentlemen. A very warm welcome to the conference call of Q1 of 2025. My colleague Klaus Neumann and myself will give you an overview about the first quarter. Please take care on page number two, the disclaimer that we added. Now let's go to slide number three. So here you have an overview about the quarter one, and you see the group highlights. Very positive is that on the defense side, the sales growth is plus 33%, where on the defense side, we made 1.795 billion sales. On the group side, plus 46%, up to 2.305 billion. Operating results on the defense side is growing faster than the sales with plus 96% to 206 million. But you see also that our civilian business is a very flat business and also by far not profitable than the defense business. Operating margin on the defense side for a first quarter, a record of 11.5%. And on the group side, on the operational margins, 8.7%. One of the critical things at the moment in Europe is that a lot of companies do not get enough people. We got in Q1 70,000 applications. As you know, last year we had totally in the group 240,000, so that we think that again this year Rheinmetall is in very good shape to get the best people and to get them very fast. The very positive figures on the operational free cash flow, we have a plus of 454 million Euro in comparison to Q1 of last year and an operational free cash flow of more than a quarter billion Euro. The CAPEX is still in good shape, so we have a CAPEX of 6.6% in Q1. If you see the growth rate that we have and if you see that the normal rate of CAPEX is between 4.5% and 5%, so it's not a very big CAPEX, but over the years we have to invest more because, as you know, we have to build more factories because later we will discuss that ther...