Rheinmetall stock under pressure after fresh 2026 outlook cut
Published on 11/06/2026 at 11:12 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSGrowth meets a lower outlook
- Rheinmetall raised nine-month sales by 38% and operating profit by 69% year over year.
- Delays to the Arminius project and artillery ammunition acceptance tests pushed revenue into the following year.
- The Capital Markets Day on November 26 and 27 is the next major investor event.
Rheinmetall reported record profitability for the first nine months of 2026, but the defence group lowered its full-year sales outlook on Thursday, November 5. In its financial report, the company cited delays in the German armed forces' Arminius project and in artillery ammunition acceptance tests.
Rheinmetall stock traded at 810.45 euros on Lang & Schwarz at 11:06 CET on Friday, November 6, 3.69 percent below the Xetra close of Thursday, November 5. The prior Xetra session ended at 841.50 euros, according to the company's investor relations page.
Strong growth, delayed revenue
Group sales rose 38 percent to 8.376 billion euros in the nine months through September, compared with 6.057 billion euros in the prior-year period. Operating profit increased to 1.339 billion euros from 795 million euros, while the operating margin advanced to 16.0 percent from 13.1 percent.
The company said higher sales volumes were the main driver of the profit increase. Basic earnings per share from continuing operations rose to 14.44 euros from 7.83 euros. Rheinmetall's order intake measure, which includes traditional orders and new framework agreements, increased to 19.1 billion euros from 16.0 billion euros. Backlog stood at 78.0 billion euros at September 30, up from 56.7 billion euros a year earlier.
Cash generation was weaker during the expansion phase. Operating free cash flow was negative 1.698 billion euros, compared with negative 798 million euros in the same period last year. Rheinmetall attributed the decline partly to higher inventories and working capital needed to support targeted sales growth.
Guidance shifts into 2027
Rheinmetall now expects 2026 sales of around 13.2 billion euros, below its previous range of 13.7 billion to 14.2 billion euros. The company also reduced its operating margin outlook to around 18.5 percent from around 19 percent, putting the forecast back at the prior-year level.
The Arminius project remains in the final phase of negotiations and cannot be commissioned until next year, Rheinmetall said. Delays in lot acceptance tests for artillery ammunition are also shifting sales out of 2026. The company nevertheless expects operating profit to improve in 2026, including acquisitions and holding costs, based on the revised sales outlook.
Chief executive Armin Papperger said strong demand and the order book support long-term capacity expansion. Rheinmetall has started production at new plants in the United Kingdom and Spain, while the company continues to pursue major defence contracts in Germany and abroad.
Investors await the next update
The revised outlook increases the importance of contract timing, ammunition acceptance and working-capital trends for the share's valuation. Management has not provided detailed 2027 guidance in the quarterly release. The next major scheduled investor event is the Capital Markets Day on November 26 and 27.
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Rheinmetall AG
- Company: Rheinmetall AG
- ISIN: DE0007030009
- Lang & Schwarz quote: 810.45 euros at 11:06 CET on November 6, 2026
- Xetra close: 841.50 euros on November 5, 2026
- 2026 sales outlook: Around 13.2 billion euros
- 2026 operating margin outlook: Around 18.5 percent
