German defense manufacturer Rheinmetall cut its 2026 sales forecast after delays to a large armored-vehicle program and slower approvals for artillery-ammunition batches, even as its first-nine-month revenue and operating profit reached records.
The company now expects full-year consolidated sales of about €13.2 billion, down from its previous range of €13.7 billion to €14.2 billion. It also reduced its expected operating margin to about 18.5% from roughly 19%.
Rheinmetall said the revised outlook reflects delays in Germany’s Arminius program for Boxer armored vehicles. The order remains in final negotiations but is not expected to be commissioned until 2027. Revenue from artillery ammunition is also shifting because of slower lot-acceptance testing.
For the first nine months of 2026, group sales rose 38% from a year earlier to €8.38 billion. Operating profit increased 68% to €1.34 billion, lifting the operating margin to 16% from 13.1%. Basic earnings per share from continuing operations rose to €14.44 from €7.83.
The company’s operating free cash flow was negative €1.70 billion, compared with negative €798 million a year earlier. Rheinmetall attributed the decline partly to inventory buildup intended to support future production and to unusually high customer advance payments in the prior-year period.
Reuters reported that Rheinmetall shares fell sharply after the forecast reduction. Analysts cited by the wire service said the size of the cut was surprising so late in the year, while the delayed Arminius order also removed an expected advance payment from the 2026 cash-flow outlook.
Demand remains strong across Rheinmetall’s defense businesses as European governments increase military spending. The company said its backlog remains high, but the update shows that converting procurement plans into current-year revenue depends on contract timing and government acceptance procedures.
The results cover operations through Sept. 30. Rheinmetall’s revised forecast is a management estimate and may change with contract awards, production schedules and customer approvals.
Sources: - Rheinmetall, first-nine-month 2026 quarterly statement: https://www.rheinmetall.com/en/media/news-watch/news/2026/11/2026-11-05-rheinmetall-news-quarterly-statement-q3 - Reuters, Rheinmetall cuts 2026 sales and margin guidance: https://www.reuters.com/business/aerospace-defense/rheinmetall-cuts-2026-sales-margin-guidance-2026-11-04/