Rheinmetall shares rise despite missing Q1 estimates
Market Reaction and Company Performance
BERLIN, May 5 (Reuters) - Shares in Rheinmetall were up 2.4% at 0800 GMT on Tuesday as the market welcomed the German defence company's second-quarter growth prospects after first-quarter revenue missed analysts' expectations.
Preliminary Results and Revenue Analysis
Ahead of schedule, the company published some preliminary results late on Monday that showed revenue at 1.94 billion euros ($2.27 billion), up 7.7%, but below analyst forecasts of 2.3 billion euros.
2026 Revenue Guidance and Growth Prospects
Rheinmetall, which confirmed its 2026 revenue guidance, said it expected significant growth in the second quarter, driven by full-scale production to start at its site in Murcia, Spain, after a fire last year and the expected handover of military trucks to the German army.
Order Backlog and Investor Sentiment
The company added that its order backlog has now reached around 73 billion euros, 31% higher than a year earlier.
Analyst Commentary and Market Outlook
"In our view investors are now a lot more focused on Rheinmetall's execution than they were in 2022-25, and so the pre-release might concern some investors," said JP Morgan analysts, though they added the company's guidance for a stronger second quarter was credible.
"We think the explanations given are reasonable."
Upcoming Financial Reports
The company is due to publish full first-quarter results on Thursday.
Additional Information
($1 = 0.8560 euros)
(Writing by Miranda Murray and Emanuele Berro; Editing by Tom Hogue and Ludwig Burger)
