Rheinmetall cuts its 2026 outlook for the second time; shares plunge about 17%

Germany’s largest defence company, Rheinmetall, cut its full-year guidance late on Wednesday — the second reduction since August — and its shares fell more than 17% in early trading on Thursday, CNBC and Euronews reported.

New targets

• 2026 sales are now expected at about €13.2 billion, down from a previous range of €13.7–14.2 billion.
• The operating margin target was trimmed to about 18.5% from 19%.

Reasons

Rheinmetall pointed to delays in Arminius, a large German army programme for Boxer armoured vehicles that is now expected to be awarded next year, and to setbacks in acceptance testing of artillery ammunition. Advance payments linked to the Boxer deal will also slip into 2027, though the company still expects positive operating free cash flow this year. It also flagged delayed fourth-quarter revenue from new activities, including its partnership with Dutch defence-tech firm Destinus.

Strong quarter, weak reaction

The cut overshadowed solid third-quarter figures: sales rose 32% to €3.15 billion and operating profit jumped 62% to €553 million, with the order backlog at €78 billion. After the drop, the stock is down about 46% this year, following four years of rapid gains driven by European rearmament after Russia’s full-scale invasion of Ukraine. RBC analysts called the update “clearly negative”.