Rheinmetall Shares Drop 16% After Revenue Forecast Cut

Rheinmetall shares fell 16% after the company lowered its 2026 financial projections. This marks the second time the firm has cut its outlook in the last three months.

The company now expects sales of 13.2 billion euros for 2026. The previous forecast ranged between 13.7 billion and 14.2 billion euros. The operating margin was also adjusted downward from 19% to approximately 18.5%.

Delays in the Arminius Boxer project and difficulties with artillery ammunition acceptance tests prompted the revision. The company also faced the cancellation of government plans for warship construction in August.

Despite these contractual issues, Rheinmetall reported positive third-quarter results. Sales grew 32% compared to the previous year, totaling 3.15 billion euros. Operating profit rose 62% to reach 553 million euros.

New orders reached 2.89 billion euros during the period. Consequently, the company's order backlog ended the third quarter at 78 billion euros.