Rheinmetall cuts 2026 sales outlook after Germany scraps frigate program
The defense group lowered its 2026 forecast by €300 million after a German naval project was cancelled, even as first-half sales jumped 39% and profit rose 74%.
Rheinmetall cut its 2026 sales outlook after a German government naval project was cancelled earlier this year, trimming expected revenue by €300 million despite strong underlying growth in its core defense business. The company now forecasts 2026 sales of €13.7 billion to €14.2 billion, down from €14.0 billion to €14.5 billion, after Germany scrapped a program to buy six F126 warships in which Rheinmetall had been expected to play a leading role. The guidance cut came alongside robust first-half results, with sales rising 39% to €5.2 billion and profit increasing 74%, helped by higher deliveries of military vehicles, ammunition and air-defense systems, as well as a €334 million contribution from its newly acquired naval division. Chief Executive Armin Papperger said the company had delivered record growth and remained on track for its annual targets. Rheinmetall has been one of the main beneficiaries of Europe’s defense buildup since Russia’s full-scale invasion of Ukraine in 2022 and of Germany’s higher military spending, while also expanding into naval defense through the acquisition of Naval Vessels Lürssen completed earlier this year. The cancelled warship program has nevertheless sharpened investor focus on execution risk and governments’ willingness to change procurement plans, contributing to volatility in Rheinmetall shares and broader caution toward European defense stocks.