Rheinmetall lowered its annual sales and operating margin forecasts after delays affecting military contracts and delivery acceptance. The German defence company reported strong nine-month revenue and operating profit growth, alongside a wider operating cash outflow. Its backlog expanded, including framework agreements, as inventories and working-capital needs increased during production expansion.
German defence manufacturer Rheinmetall lowered its annual sales and operating margin forecasts following delays to military contracts and delivery acceptance. The company now forecasts sales of 13.2 billion euros. The company cited Germany’s Arminius vehicle contract moving to 2027 and the acceptance schedule for some artillery deliveries. The operating margin forecast fell from approximately 19 per cent to 18.5 per cent.[1], [2]
Nine-month revenue rose 38 per cent, from 6.057 billion euros to 8.376 billion euros. Operating profit increased from 795 million euros to 1.339 billion euros, with the margin rising from 13.1 per cent to 16 per cent. Operating free cash flow was negative 1.698 billion euros, against negative 798 million euros a year earlier. Rising inventories, working-capital needs and the previous period’s high advance payments affected the cash comparison.[1]
Backlog increased from 56.7 billion euros to approximately 78 billion euros, including framework agreements and firm orders. New business and framework volumes together reached 19.1 billion euros. Germany accounted for 41.3 per cent of revenue and international operations for 58.7 per cent. Rheinmetall continued production-capacity investment, including new facilities in the United Kingdom and Spain.[1]
