Published by Global Banking & Finance Review®
Posted on December 18, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleRheinmetall is selling its civil business to focus on military operations, incurring a 350 million euro impairment. The sale is expected by Q1 2026.
Dec 17 (Reuters) - German defense manufacturer Rheinmetall said on Wednesday it has initiated the sale of its civil business activities and will classify them as discontinued operations with immediate effect.
The company said the sale, which includes its Power Systems division, is part of a strategy to focus the group's activities on its core military operations.
Rheinmetall added it will book a non-cash impairment charge of about 350 million euros ($411.08 million) due to discontinued operations.
The impairment loss has no impact on the liquidity or earnings of the group's continuing operations, the company said in the statement.
Rheinmetall also updated its forecast for the full year. It expects sales growth of between 30% and 35%, up from its previous estimate of a 25% to 30% growth issued in November.
It now sees an operating margin of 18.5% to 19.0%, compared with 15.5% previously.
The sale is expected to be signed in the first quarter of 2026, after negotiations with two bidders.
In May, Rheinmetall CEO Armin Papperger said the company had been contacted by potential buyers of its civilian businesses and was in talks with them.
($1 = 0.8514 euros)
(Reporting by Devika Nair in Bengaluru; Editing by Alan Barona)
An impairment charge is a reduction in the book value of an asset when its market value falls below its carrying amount, indicating that the asset is no longer worth its original value.
Discontinued operations refer to parts of a company's business that have been sold or are planned to be sold, which are reported separately from continuing operations in financial statements.
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