Key facts
- Rheinmetall cut its 2026 sales forecast to about 13.2 billion euros from 13.7 billion to 14.2 billion euros.
- The lower forecast falls below the lowest of 22 analyst estimates compiled by Vara Research on October 15.
- Rheinmetall cut its 2026 operating margin target to about 18.5% from around 19%.
- Third-quarter sales rose to 3.15 billion euros from 2.31 billion euros, and operating profit rose 62% to 553 million euros.
- Rheinmetall said revenue and advance payments linked to the Arminius Boxer programme would move into 2027.
Rheinmetall lowered its 2026 sales forecast for the second time in three months on November 4, 2026, saying it no longer expected a contract award in 2026 for Germany's Arminius Boxer vehicle programme. The Duesseldorf-based group said revenue from artillery ammunition would also be delayed by slower batch approvals.
The company now expects sales of about 13.2 billion euros ($14.81 billion), down from its previous forecast of 13.7 billion to 14.2 billion euros. That is below the lowest of 22 analyst estimates in a Vara Research compilation dated October 15. Rheinmetall also cut its 2026 operating margin target to about 18.5% from around 19%.
Revenue and advance payments linked to Arminius will move into 2027, Rheinmetall said, without giving an updated timetable for the award. It also said not all expected revenue opportunities from newer activities, including cooperation with Dutch drone maker Destinus, would materialise in 2026.
The guidance cut came despite strong third-quarter results. Sales rose to 3.15 billion euros from 2.31 billion euros, while operating profit increased 62% to 553 million euros, lifting the operating margin to 17.5% from 14.8% a year earlier. Order intake totalled 2.89 billion euros.
Rheinmetall still expects positive operating free cash flow for the year but dropped its target for a cash conversion rate above 40% after the Arminius delay. Chief Executive Armin Papperger told reporters in August that Rheinmetall had expected a 30% advance payment worth more than 3 billion euros under the programme and that its share of an initial Arminius order could amount to about 12.4 billion euros.