The company said the operating result margin improved to 11.6% from 10.6% a year earlier. Rheinmetall also confirmed its full-year guidance, citing sustained demand driven by rising defence budgets across Europe and NATO member states.
The company’s order backlog reached a record €73 billion by the end of March 2026. Rheinmetall said the figure included €5.5 billion from the Naval Systems business for the first time following the acquisition of NVL.
Armin Papperger said the company expected stronger growth in the coming months. “We have further improved on the very successful prior-year quarter. For the second quarter of 2026 in particular, we expect stronger growth in sales and order intake, with large-volume orders in the naval business and in the vehicles business,” he said.
Rheinmetall completed the acquisition of NVL during the first quarter of 2026. The company said the deal established Rheinmetall as a full-service provider across all branches of the armed forces, including maritime capabilities.
“The planned expansion of our capacity utilisation will enable us to continue increasing our profitability,” Papperger said. “With the successful acquisition of Naval Systems, we have entered a new market segment where we are also generating profitable growth.”
He said the integration process was progressing positively. “I am very happy with the status of the integration. Workers at our shipyards have impressive shipbuilding expertise and are highly motivated,” Papperger added.
“I am convinced that we will be successful in the new set-up and fulfil major orders to the satisfaction of our customers. We have big plans in this area,” he said. Rheinmetall stated that the maritime business now spans unmanned naval vehicles, corvettes and frigates.
Papperger also highlighted the company’s expansion into unmanned systems. “Overall, we are well on course to achieve our ambitious annual targets. We have also established a strong position in the drone sector and, a few days ago, won a strategically significant order for loitering munitions, which has considerable potential,” he said.
“We are now a significant player in all key areas – on land, at sea, in the air, in the cyber sector and in space – and thus on our way to becoming a global defence champion,” he added. The company linked future growth to broader European security investment.
Rheinmetall said its Vehicle Systems division recorded sales of €985 million in the first quarter. Growth was driven by infantry fighting vehicle deliveries, tactical vehicle programmes for Germany and expanded service activities.
The segment’s order intake rose significantly following an expansion of the Puma infantry fighting vehicle programme. Rheinmetall said an additional 200 Puma vehicles had been ordered in a second batch at the end of 2025.
The Weapon and Ammunition division generated sales of €601 million during the quarter. Rheinmetall said artillery ammunition deliveries to Ukraine and an ammunition package for Hungary were among the main contributors.
The division also secured new orders linked to tank ammunition for Poland and Lithuania, as well as ammunition framework agreements with the Netherlands. Rheinmetall added that investments continued in powder and propellant production capacity at facilities in Germany, Switzerland and Spain.
Air Defence sales increased by 43% to €192 million, driven by projects involving Skynex and Skyranger systems for European customers. The division’s operating margin improved to 15.6%.
Digital Systems sales rose by 16% to €349 million, supported by the TaWAN digitalisation programme and contributions from blackned. The segment also received an order to supply unmanned turret systems for reconnaissance vehicles to the German customer.
The Naval Systems segment contributed €77 million in sales during March, its first month within Rheinmetall’s reporting structure. Revenue was generated mainly from new-build ship programmes, including the German fleet service vessel and the Bulgarian multi-purpose modular patrol vessel.
Rheinmetall reaffirmed its forecast for the full 2026 financial year. The company expects annual sales of between €14 billion and €14.5 billion and an operating margin of around 19%.
