Rheinmetall Scales Down 2026 Sales Outlook on Scrapped Frigate Program
The company cut sales guidance by €300 million after Germany scrapped the F126 warship program, and shares were volatile in early trading.
- On Thursday, German defence company Rheinmetall lowered its 2026 sales outlook to €13.7 billion–€14.2 billion after the German government cancelled a delayed frigate programme the company expected to win.
- The German government scrapped the delayed frigate programme in June, dealing a €300 million revenue hit to Rheinmetall's naval division. The company had positioned itself to secure the contract as part of its naval expansion strategy.
- Despite the lowered guidance, Rheinmetall reported strong first-half results with sales growing 39% and profits rising 74%. Chief Executive Armin Papperger stated, "We have achieved record growth and are well on the way to meeting our annual targets."
- Shares were volatile on Thursday, initially opening about 3% lower before reversing course to trade 1.4% higher. Investors have questioned whether defence sector valuations have outpaced companies' ability to execute on expanding order books.
- Chief Executive Papperger stated Rheinmetall works as a "reliable partner with a high level of expertise" to fulfil maritime orders and secure new contracts internationally. The company continues pursuing naval sector acquisitions to strengthen its position.
27 Articles
27 Articles
Rheinmetall sales keep surging despite cancelled naval frigate project
The German government announced in mid-June that it was cancelling the stalled multi-billion-euro F-126 programme, even though Rheinmetall was widely seen as the frontrunner to take over the project. The cancellation dragged down Rheinmetall's otherwise booming financial results over the first half of 2026, as the Duesseldorf-based armaments giant continues to be one of the major beneficiaries of a European military buildup driven by Russia's in…
Rheinmetall has lowered its revenue forecast for this year following the loss of a contract for the construction of naval vessels. Germany's largest defense company was set to build six frigates with a total value of more than 10 billion euros, but the German government withdrew the order in June.
The German armaments company must correct its revenue targets downwards after the stop for the warship project F126.
Rheinmetall reviewed its financial estimates for the year below, reflecting the loss of the one that could have been Germany's largest warship project since World War II. Exclusive material for subscribers. To have full access, access the link of the material and register.
Coverage Details
Bias Distribution
- 62% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
