German arms maker Rheinmetall has reported a nearly 70% surge in second-quarter revenue and more than doubled its operating profit as rising European military spending continues to boost demand for weapons across the region.

European arms manufacturers have prospered throughout the conflict, as Kiev’s backers have supplied its military with weapons while expanding their own defense industries. Shares in Rheinmetall, Europe’s largest defense contractor, have risen more than tenfold over the past six years. The company produces a broad range of military equipment that is supplied to Ukraine, including tanks, armored vehicles, artillery shells, and ammunition.

Like other European NATO members, Germany cites the threat of Russian aggression as a key reason for its military buildup, an assessment Moscow has dismissed as “nonsense” and baseless fearmongering.

New orders surged to €11.37 billion in the second quarter from €1.98 billion a year earlier, lifting Rheinmetall’s order backlog to a record €80.47 billion, according to the Dusseldorf-based company’s financial report released on Thursday. Revenue rose to €3.29 billion from €1.95 billion, while operating profit more than doubled to €562 million. Net profit, however, edged down to €124 million from €130 million.

Despite the strong quarterly performance, Rheinmetall lowered its 2026 sales forecast to €13.7-14.2 billion from €14-14.5 billion after Germany scrapped the planned €15.2 billion F126 frigate project in favor of TKMS’s MEKO A-200 warships.

“Demand remains strong, and we continue to succeed in securing major orders both at home and abroad,” CEO Armin Papperger said, commenting on the results.

Germany has become Ukraine’s second-largest arms supplier after the US and has significantly expanded its long-term defense commitments. Berlin has amended the country’s constitutional debt rules to exempt much of defense spending from borrowing limits, paving the way for a sustained military buildup. The government plans to increase defense spending to about €82.7 billion in 2026 and gradually to 3.5% of GDP by 2029 in line with NATO targets, amid pressure from US President Donald Trump for European allies to shoulder a greater share of the bloc’s military burden.

Berlin has repeatedly reaffirmed its commitment to continued military support for Ukraine, despite signs of declining public support for expanding military assistance to Kiev.

The German economy has been reeling from a cost-of-living crisis and high energy prices, exacerbated by the phaseout of Russian energy and the ongoing war in the Middle East.