Rheinmetall shares plunge more than 17% after profit warning over order delays
German defence giant Rheinmetall warned of delays to military contracts and ammunition approvals, sending its shares down more than 17% in early trading on Thursday.
Shares of German defense firm Rheinmetall AG experienced a significant drop of more than 17% on Thursday following a profit warning and revised sales forecasts. In a statement on Wednesday evening, the company reduced its annual revenue projection for 2026 to approximately €13.2bn, down from the previous range of €13.7bn–€14.2bn.
Additionally, Rheinmetall lowered its operating margin expectations to around 18.5% from 19%. The company cited a likely postponement of a major German military order under the Arminius project, which would have brought advance payments and revenue earlier. This project entails the procurement of Boxer wheeled armoured vehicles, manufactured jointly by Rheinmetall and defense group KNDS.
Rheinmetall also anticipates lower revenue from its newer activities in weapons and ammunition, particularly its partnership with Dutch firm Destinus. Delays in acceptance checks for artillery ammunition are expected to impact some revenue in 2027. Despite these setbacks, Rheinmetall remains optimistic about maintaining positive operating free cash flow for the year.
This is the second time the company has revised its sales forecast this year, following a similar reduction in August after Germany abandoned the F126 frigate program.
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