The German defence group lowered its 2026 sales forecast following the cancellation of the F126 frigate programme. Rheinmetall now expects annual revenue of between €13.7 billion and €14.2 billion after cutting its outlook by €300 million.
The group maintained its organic sales growth forecast of between 28% and 31%. It also continues to target an operating margin of about 19% for the full year.
Rheinmetall Backlog reached €80.5 billion at the end of June, compared with €56 billion a year earlier. Rheinmetall Nomination, which includes orders and new framework agreements, increased 28% to €16.2 billion.
“We have achieved record growth and are well on the way to meeting our annual targets, which remain very ambitious. We owe this not only to a very strong order book and the significant expansion of capacity, but also, above all, to the outstanding performance of our workforce,” Chief Executive Armin Papperger said.
Second-quarter operating result more than doubled to €562 million from €262 million. The quarterly operating margin reached 17.1%, its highest level to date.
“We are maintaining our solid growth trajectory and continuing to improve profitability, partly through a significant expansion of our capacity. In the second quarter, we were even able to increase the operating result margin to 17.1% – a new high,” Papperger said.
Vehicle Systems sales increased 28% to €2.43 billion during the first half. The division benefited from tactical vehicle programmes, European armoured vehicle deliveries and logistics vehicle orders.
Its backlog rose 41% to €28.83 billion after several large awards. These included 200 additional Puma infantry fighting vehicles for Germany and 298 Lynx vehicles for Romania.
Weapon and Ammunition sales climbed 33% to €1.76 billion. Deliveries included an ammunition package for Hungary and artillery and medium-calibre ammunition for Ukraine.
The division’s operating result rose to €417 million from €280 million. Its operating margin increased to 23.7% from 21.2%.
Air Defence sales increased 62% to €478 million, supported by progress on Skynex and Skyranger programmes. Its backlog rose 80% to €4.22 billion after additional European and international orders.
Digital Systems increased sales by 23% to €820 million. Its backlog climbed 80% to €20.65 billion, supported by military digitalisation and air-defence programmes.
Naval Systems generated €334 million in sales during the four months following its acquisition in February. The division recorded €1 billion in orders, including a €920 million Romanian contract for four vessels.
Earnings per share from continuing operations rose to €8.43 from €4.69. Rheinmetall said cash flow was affected by advance-payment timing, higher inventories, customer receivables and continued investment.
“Demand remains strong, and we continue to succeed in securing major orders both at home and abroad. At over 3, our book-to-bill ratio is remarkably high, also compared with our competitors,” Papperger said.
Rheinmetall said the remaining assumptions behind its 2026 guidance were unchanged. The company expects defence spending and capacity expansion to continue supporting sales and profitability.
