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Rheinmetall cuts 2026 sales forecast again as Boxer order slips - Finance news and analysis from Global Banking & Finance Review
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Rheinmetall cuts 2026 sales forecast again as Boxer order slips

Published by Global Banking & Finance Review

Posted on November 4, 2026

2 min read

· Last updated: November 4, 2026

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Rheinmetall Cuts 2026 Sales Forecast Again Amid Boxer Order Delay

Rheinmetall's Financial Outlook and Key Developments

Sales Forecast Reduction and Contributing Factors

Nov 4 (Reuters) - Rheinmetall cut its 2026 sales forecast for the second time in three months late on Wednesday, saying it no longer expected a contract award this year for Germany's Arminius Boxer vehicle programme and that revenue from artillery ammunition would be delayed by slower batch approvals.

The Duesseldorf-based group now expects sales of about 13.2 billion euros ($14.81 billion), below the 13.7 billion to 14.2 billion euros it forecast previously and beneath the lowest of 22 analyst estimates in a Vara Research compilation dated October 15.

It also lowered its operating margin target to about 18.5% from around 19%.

Impact of Arminius Boxer Programme Delay

Rheinmetall said revenue and advance payments linked to Arminius would move into next year and gave no updated timetable for the award. The company also said not all expected revenue opportunities from newer activities, including cooperation with Dutch drone maker Destinus, would materialise in 2026.

Quarterly Performance and Financial Metrics

The guidance cut came despite strong third-quarter results.

Sales and Profit Growth

Sales rose to 3.15 billion euros from 2.31 billion, while operating profit increased 62% to 553 million euros, lifting the operating margin to 17.5% from 14.8% a year earlier. Order intake totalled 2.89 billion euros.

Cash Flow and Advance Payment Details

Rheinmetall still expects positive operating free cash flow for the year but dropped its target for a cash conversion rate above 40% after the delay to Arminius. The company had expected a 30% advance payment worth more than 3 billion euros under the programme, according to comments by Chief Executive Armin Papperger to reporters in August.

Significance of the Arminius Order

Papperger said at the time that Rheinmetall's share of an initial Arminius order could amount to about 12.4 billion euros. The programme is expected to become one of Germany's largest military procurement projects.

Additional Information

($1 = 0.8913 euros)

(Reporting by Maria Rugamer; Editing by Shailesh Kuber)

Key Takeaways

  • Sales guidance has been trimmed to ~€13.2 billion, down from €13.7‑14.2 billion previously, with operating margin lowered to ~18.5 % (live.euronext.com).
  • The Boxer (“Arminius”) contract is postponed into next year, affecting both revenue and anticipated advance payments (handelsblatt.com).
  • Delays in artillery ammunition approvals and reduced visibility on Destinus-related revenue further weigh on 2026 outlook (de.investing.com).

References

Frequently Asked Questions

What are Rheinmetall's new 2026 sales and margin targets?
Rheinmetall now expects 2026 sales of about 13.2 billion euros and has set its operating margin target to around 18.5%.
How did delays impact Rheinmetall's cash flow targets?
The company dropped its target for a cash conversion rate above 40% after delays to the Arminius programme, affecting advance payments.
What were Rheinmetall's latest quarterly financial results?
For the third quarter, Rheinmetall reported sales of 3.15 billion euros, operating profit of 553 million euros, and an operating margin of 17.5%.
Will revenue from new activities impact 2026 results?
Rheinmetall does not expect all revenue opportunities from newer activities, like its cooperation with Destinus, to materialise in 2026.

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