DUESSELDORF, Germany — Rheinmetall has cut its 2026 forecasts. In its nine-month statement on Thursday, the German defence group blamed delays to the Arminius armoured vehicle project and to artillery ammunition acceptance tests, which will shift sales into next year.
The new forecast puts 2026 sales at around €13.2 billion, well short of the €13.7 billion to €14.2 billion range given earlier. Profitability takes a smaller hit: the operating result margin should come in at around 18.5%, against about 19% in the old guidance.
Investors reacted quickly. Rheinmetall shares were down nearly 16% at €844.5 in late morning trading on Thursday, according to Reuters.
The Arminius project sits at the centre of the delay. Rheinmetall said the armoured vehicle programme for the German armed forces is in the final phase of negotiations and cannot be commissioned until next year, and that lot acceptance tests for artillery ammunition have also slipped.
Record nine months, weaker cash flow
The downgrade came in a statement that otherwise reported record growth. Sales over the first nine months climbed 38% to €8,376 million. The same period last year brought in €6,057 million. Higher defence budgets in many countries helped.
Profits grew faster than sales. The operating result added €544 million to reach a record €1,339 million, and the margin moved up to 16.0% from 13.1%. Basic earnings per share from continuing operations were €14.44, against €7.83 a year earlier.
Cash told a different story. Operating free cash flow was negative €1,698 million, some €900 million worse than a year earlier, after the group built up inventories to support the sales growth it still targets.
Orders, though, are not the problem. Rheinmetall Nomination, the group’s measure covering order intake and new framework agreements, rose to €19.1 billion from €16.0 billion, and the Rheinmetall Backlog stood at €78.0 billion on Sept. 30, up from €56.7 billion a year earlier.
“We are achieving very strong growth coupled with high profitability, which makes us a global leader within our sector.”
Vehicles and guns drive the growth
Vehicle Systems remained the largest segment. Its sales rose 20% to €3,898 million, helped by a German order for 200 more Puma infantry fighting vehicles early this year and an order for 298 Lynx vehicles for Romania, financed under the European SAFE programme. The segment’s operating result rose to €466 million, for a margin of 12.0%.
Weapon and Ammunition, the most profitable part of the group, lifted sales 34% to €2,705 million on ammunition packages for Hungary, artillery and medium-calibre rounds for Ukraine and other European customers. Its operating result reached €634 million, a margin of 23.4%.
Air Defence grew fastest, with sales up 63% to €731 million on work on Skynex and Skyranger systems, and its operating result more than doubled to €135 million. Digital Systems sales rose 29% to €1,328 million, while Naval Systems, reported as a separate segment since its acquisition at the end of February, added €679 million of sales in seven months.
Papperger said demand remains strong and that the group keeps winning major contracts at home and abroad. Rheinmetall said it still expects its operating result to improve this year, even on the lower sales forecast.
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