Rheinmetall stock drops as 2026 outlook is cut again
Published on 11/05/2026 at 11:21 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSGrowth Meets A Lower Outlook
- Rheinmetall increased nine-month sales and operating profit sharply year on year.
- Arminius project delays and slower artillery acceptance tests will shift revenue into 2027.
- The company expects positive operating free cash flow for the full year despite heavy inventory investment.
Rheinmetall reported record growth for the first nine months of 2026, but lowered its full-year outlook because major defense projects are moving into the following year. In its financial report published on Thursday, the company said delays in the German armed forces' Arminius project and artillery ammunition acceptance tests would shift sales.
The group generated sales of 8.376 billion euros in the first nine months, up 38 percent from 6.057 billion euros a year earlier. Operating result rose 68 percent to 1.339 billion euros from 795 million euros, while the operating margin widened to 16.0 percent from 13.1 percent. Rheinmetall said the increase was driven mainly by higher sales volumes.
Demand remained supported by higher defense budgets and a large order position. Rheinmetall Nomination rose to 19.1 billion euros from 16.0 billion euros, while the backlog reached 78.0 billion euros at September 30, compared with 56.7 billion euros a year earlier. The company also highlighted new production capacity in the United Kingdom and Spain.
Guidance Moves Into 2027
Rheinmetall now expects 2026 sales of around 13.2 billion euros, compared with its previous range of 13.7 billion to 14.2 billion euros. The operating margin target was reduced to around 18.5 percent from approximately 19 percent. Management said the Arminius project remains in the final negotiation phase and cannot be commissioned until next year.
The company also expects delays in artillery ammunition lot approvals. Revenue from those deliveries, as well as some opportunities in newer activities, will therefore shift into 2027. Rheinmetall still expects a year-on-year improvement in operating result and positive operating free cash flow for 2026, although its nine-month operating free cash flow was negative 1.698 billion euros as inventories increased to support planned growth.
Strong Execution, Higher Timing Risk
For investors, the figures show that demand and operating execution remain strong, while the revised forecast raises questions about the timing of major contracts and cash generation. The company said its product mix explains the lower margin target, rather than a deterioration in the nine-month margin.
The real-time quote of Rheinmetall stock stood at 831.35 euros on Lang & Schwarz at 11:13 CET on Thursday, November 5, 2026, 17.15 percent below the Xetra close of Wednesday, November 4.
Rheinmetall stock at a glance
- Company: Rheinmetall AG
- ISIN: DE0007030009
- Ticker: RHM.DE
- Lang & Schwarz price: 831.35 euros on November 5, 2026 at 11:13 CET
- Change versus Xetra close: 17.15 percent lower
- Xetra close: 1,003.40 euros on November 4, 2026
- Market capitalization: 39,382,072,994 euros
- 52-week range: 818.70 to 1,966 euros
The broader market context is available in the current market reports.
Investors will next focus on the timing of the Arminius award, ammunition approvals and the conversion of Rheinmetall's order position into sales and cash. More news and analyses on Rheinmetall stock will follow these developments.
