Rheinmetall Cuts 2026 Sales Guidance After German Ship Project Cancellation

Rheinmetall lowered its 2026 sales guidance to between 13.7 billion and 14.2 billion euros, a reduction of 300 million euros from previous projections. The downward revision follows a decision by the German government to cancel a 15.2 billion euro project for six F126 frigates, citing cost increases and delays. The government instead chose to purchase eight MEKO A-200 frigates from shipbuilder TKMS.

Despite the project loss, the company reported strong first-half sales of 5.2 billion euros. Second-quarter orders surged to 11.37 billion euros, driven largely by a 5.7 billion euro contract with Romania for air-defense systems and combat vehicles. CEO Armin Papperger stated that the company has achieved record growth and remains on track to meet its annual targets.

To expand its capabilities, Rheinmetall signed a memorandum of understanding with Lockheed Martin. The agreement allows the company to produce American ATACMS missiles at its Unterluess facility in Germany.