Rheinmetall Lowers 2026 Sales Target Due to German Procurement Delays

Rheinmetall AG lowered its 2026 sales target for the second time this year, now projecting approximately 13.2 billion euros. This is a decrease from the previous forecast range of 13.7 billion to 14.2 billion euros. The company also reduced its operating margin forecast from 19% to 18.5%.

The downgrade stems from procurement delays involving the Arminius project, a large-scale German acquisition of Boxer armored wheeled vehicles. Additionally, the company reported that anticipated revenue from weapons and ammunition will not materialize during the fourth quarter.

These financial adjustments follow a previous guidance cut in August. That earlier reduction occurred after the German government canceled orders for six F126 frigates, opting instead for eight MEKO A-200 frigates from TKMS. Despite these contract setbacks, the company reported a third-quarter operating profit of 553 million euros, which exceeded analyst expectations.