{"id":906709,"date":"2026-11-05T11:26:14","date_gmt":"2026-11-05T11:26:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/906709\/"},"modified":"2026-11-05T11:26:14","modified_gmt":"2026-11-05T11:26:14","slug":"rheinmetall-cuts-outlook-for-second-time-in-months-as-military-contracts-stall","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/906709\/","title":{"rendered":"Rheinmetall cuts outlook for second time in months as military contracts stall"},"content":{"rendered":"

German defense giant Rheinmetall<\/a> cut its full-year guidance late Wednesday, citing delays to military contracts and ammunition deliveries.<\/p>\n

It marks the company’s second outlook cut since August, when Germany scrapped plans to build warships<\/a> in what would have been Rheinmetall’s biggest order since World War II. <\/p>\n

The defense company now expects sales to rise to around 13.2 billion euros ($14.9 billion) in 2026, down from a prior outlook range of between 13.7 billion and 14.2 billion euros. It is expected to have an operating margin of around 18.5%, down from the previously expected 19%.<\/p>\n

Rheinmetall said it revised its 2026 guidance due to delays in the German military’s Arminius project, a major German military procurement program for Boxer armored vehicles, and setbacks in artillery ammunition acceptance testing. <\/p>\n

The Arminius contract, now expected to be commissioned next year, involves vehicles manufactured by ARTEC, a joint venture between Rheinmetall and the Franco-German defense group KNDS.<\/p>\n

Rheinmetall shares fell over 17% in early trading, bringing year-to-date losses to about 46%.<\/p>\n

It follows an average annual gain of 119% over the prior four years as it became one of the main beneficiaries of ramped-up military spending by European governments amid Russia’s full-scale invasion of Ukraine in 2022. <\/p>\n

Stock Chart IconStock chart icon\"hide<\/p>\n

Rheinmetall shares over the past five years.<\/p>\n

RBC analysts called the announcement “clearly negative,” citing concerns over the Boxer program’s timing, scope and impact on medium-term guidance. They warned the news could fuel broader investor concerns about traditional defense technology.<\/p>\n

“We suspect bears will see this negatively as part of the ongoing ‘new-tech vs old-tech’ sector debate,” they said.<\/p>\n

Rheinmetall said delays to the Boxer contract would also push expected advance payments into 2027, affecting its previous cash conversion target of over 40%, although it still expects positive operating free cash flow this year.<\/p>\n

The company also flagged delays in expected fourth-quarter revenue from new business activities, particularly its partnership with Dutch defense technology firm Destinus.<\/p>\n

The guidance cut came as the German company posted improving results, with third-quarter sales increasing 32% year-on-year to 3.15 billion euros and operating profit jumping 62% to 553 million euros.<\/p>\n

New order intake was 2.89 billion euros, bringing its backlog to 78 billion euros by the end of the third quarter.<\/p>\n

Despite being overshadowed by the outlook cut, Citi analysts called the third-quarter print “a strong set of Q3 results.”<\/p>\n","protected":false},"excerpt":{"rendered":"German defense giant Rheinmetall cut its full-year guidance late Wednesday, citing delays to military contracts and ammunition deliveries.…\n","protected":false},"author":2,"featured_media":906710,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[9178,116,28,122,6052,8084,215622,6797,76461],"class_list":["post-906709","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-aerospace-and-defense-industry","tag-breaking-news-markets","tag-business","tag-business-news","tag-defense","tag-earnings","tag-europe-earnings","tag-germany","tag-rheinmetall-ag"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/906709","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=906709"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/906709\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/906710"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=906709"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=906709"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=906709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}