Rheinmetall’s (OTCPK:RNMBY) (OTCPK:RNMBF) shares rose 8.5% Wednesday after the German defense contractor forecast significant growth this year, projecting a sales increase of between 25% and 30%. The company expects to revise its forecasts upward in the coming months as European nations move forward with plans to expand their defense capabilities.

Rheinmetall AG is projecting sales at its main defense business will grow as much as 40% this year as Europe ramps up spending on the military.

Rheinmetall AG predicts that sales and operating profit will continue to grow this year. German arms maker to benefit from sharp rise in European defense spending, according to Bloomberg. Rheinmetall forecasts revenue growth of 25-30%.