Rheinmetall cuts 2026 sales forecast again as Boxer order slips
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FILE PHOTO: Employees of Germany's Rheinmetall work in a production line at the plant in Kassel, Germany, August 27, 2026. REUTERS/Fabian Bimmer/File Photo
Nov 4 (Reuters) - Rheinmetall cut its 2026 sales forecast for the second time in three months late on Wednesday, saying it no longer expected a contract award this year for Germany's Arminius Boxer vehicle programme and that revenue from artillery ammunition would be delayed by slower batch approvals.
The Duesseldorf-based group now expects sales of about 13.2 billion euros ($14.81 billion), below the 13.7 billion to 14.2 billion euros it forecast previously and beneath the lowest of 22 analyst estimates in a Vara Research compilation dated October 15.
It also lowered its operating margin target to about 18.5% from around 19%.
Rheinmetall said revenue and advance payments linked to Arminius would move into next year and gave no updated timetable for the award. The company 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, 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 delay to Arminius. The company had expected a 30% advance payment worth more than 3 billion euros under the programme, according to comments by Chief Executive Armin Papperger to reporters in August.
Papperger said at the time that Rheinmetall's share of an initial Arminius order could amount to about 12.4 billion euros. The programme is expected to become one of Germany's largest military procurement projects.
($1 = 0.8913 euros)
(Reporting by Maria Rugamer; Editing by Shailesh Kuber)
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