Rheinmetall cuts 2026 forecast, shares slump
Shares of Germany's defence group Rheinmetall fell more than 17 percent in early trading on Thursday 5 Nov after the company lowered its 2026 guidance. Sales are now expected to reach about 13.2 billion euros, down from an earlier range of 13.7 to 14.2 billion euros, and the operating margin forecast was trimmed to around 18.5 percent from 19 percent. The company blamed delays to the German military's Arminius project for Boxer armoured vehicles and setbacks in artillery ammunition acceptance testing. It is the second cut to its outlook since August. Rheinmetall still expects positive operating free cash flow for the full year. Third-quarter sales rose 32 percent to 3.149 billion euros.
Key facts
- A major German Arminius order for Boxer vehicles is now unlikely to be placed this year.
- Artillery ammunition batch acceptance delays will push some revenue into 2027, the company said.
- Germany cancelled the F126 frigate programme in August, prompting the earlier outlook cut.
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Why it matters
A forecast cut at a major European arms maker signals delayed defence orders and revenue shifting into 2027.
What changed
First published from CNBC and Euronews