(MENAFN) Rheinmetall has witnessed its stock value almost triple within the past year, fueled by surging demand for military equipment amid the ongoing Ukraine conflict and increasing defense budgets across the European Union.

The company manufactures a broad spectrum of weaponry supplied to Ukraine, including tanks, armored vehicles, artillery shells, and ammunition.

According to the Dusseldorf-based company’s third-quarter financial report released on Thursday, revenue soared by 20% to €7.5 billion ($8.7 billion), while operating income climbed by 18% to €835 million. Rheinmetall also announced that its order backlog had reached a historic peak of €64 billion.

The defense producer reported that it is broadening its production capacity, with 13 facilities either being built or upgraded across the European bloc.

These include a new factory in Lithuania and planned sites in Latvia and Bulgaria.

The company emphasized that Ukraine, the European Union, and Germany continue to represent its principal markets.

“We are becoming a global defense champion,” declared CEO Armin Papperger.

Germany has emerged as Kiev’s second-largest supplier of weaponry, following the United States.

Berlin has amended its fiscal rules to allow sustained defense investments beyond the €100 billion fund established after the intensification of the Ukraine conflict in 2022.

Chancellor Friedrich Merz has advocated for the development in Germany of “Europe’s strongest army.”

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