More danger, more honour – that seemed to be Armin Papperger's motto for a long time. However, after over two years of war in Ukraine, the Rheinmetall CEO has become more contemplative.

Not that he has any doubts about his mission. „Taking responsibility in a changing world“ was the title of the speech he gave recently at the business PR association Wirtschaftspublizistischen Vereinigung (WPV) in Dusseldorf.

He introduced the Rheinmetall promotion film with pride. But the fact that the 61-year-old had to arrive with four bodyguards, and that a police patrol outside the venue provides additional security, does not leave Germany's largest arms manufacturer's CEO unaffected. Just last Monday, there was an arson attack on the garden shed on his property in Hermannsburg, Lower Saxony. „Fortunately, I wasn't inside“, says Papperger, adding that „the Federal Republic of Germany ensures that I am safe. For that, I am grateful.“

Papperger does not want to let such events affect him too closely. „It is what it is – there are many crazy people in the world“, he said, and we must be ready to defend ourselves against people who instigate violence.

True, armaments is his business, although the Rheinmetall CEO talks about defence. The trained engineer has spent his entire professional life at the company, and has climbed the career ladder in the defence sector. Since 2012, he has been a member of the board, and since 2013, he has been the CEO of the „integrated technology group“. Papperger prefers this term to „defence company“. He stands firmly behind the defence industry, and not just since the outbreak of the war in Ukraine. However, the changed geopolitical situation has made the entire industry more acceptable again.

Papperger does not hide his satisfaction at this change. The belief that nuclear deterrence was enough to prevent wars has proven to be wrong. In his opinion, unfortunately this view led to the West investing too little in conventional armaments. In contrast, Russia has been preparing for offensive warfare for ten years, and accordingly has full arms depots. The situation is supposed to change now, but Germany lacks the money. The special fund of 100 billion euros will be exhausted by the end of 2026. Then there will be a shortage of 30 billion euros annually. No one knows where the money will come from, even though politicians give assurances that the problem will be solved. Papperger warns that if this 30 billion is not invested each year, then the historic turning point (referring to Chancellor Olaf Scholz's Zeitenwende speech) will be a failure.

The changed geopolitical situation pays off for Rheinmetall in euros and cents. In 2023, revenue grew by over 12% to 7.2 billion euros, and net income by 9% to 586 million euros. The order books are bursting at the seams. Papperger predicts an order backlog of 60 billion euros by the end of the year. This is also reflected in the stock price, which has risen by 75% so far this year alone.

„I took over the company at 800 million euros market capitalisation, now we are worth over 22 billion euros, and I believe we can get it up to 50 billion euros“, says the Rheinmetall CEO, not very modestly, His public prediction was an increase in the share price to only 400 euros by the end of the year. Currently, the stock is trading around 534 euros. „I'm always too conservative", he jokes.

When asked if the 50 billion euros could be reached during his tenure, he remains vague, saying that „I don't know yet how long I want to be at the helm.“ His current contract runs until the end of 2026.