Rheinmetall shares jumped after the arms maker reported strong Q2 growth, signaling solid military equipment demand amid geopolitical tensions. Preliminary revenue jumped 69% year-over-year to 3.29 billion euros ($3.75 billion), beating analyst forecasts of 3.16 billion euros.

Operating profit climbed to 562 million euros from 276 million euros, exceeding consensus of 469.9 million euros. The robust growth shows Rheinmetall continues benefiting from higher defense spending following Russia's invasion of Ukraine.

NATO members have placed steady orders for ammunition, air defenses, and other equipment to replenish stockpiles after diverting weapons to Kyiv. Rheinmetall shares in Frankfurt gained about 5% Wednesday, though the stock remains down ~25% since January as peace talk mentions weighed on the sector.