Defense contractor lowers guidance by 300 million euros following Berlin’s decision to scrap the F126 warship program.
Rheinmetall reduced its 2026 sales outlook to a range of 13.7 billion euros to 14.2 billion euros, down 300 million euros from prior guidance. The adjustment follows Germany’s cancellation of the F126 warship project, a key revenue driver for the company’s naval division.
First-half sales surged 39% to 5.2 billion euros, with profits up 74%, driven by strong demand for military vehicles, ammunition, and air-defense systems. The newly acquired naval unit contributed 334 million euros, though the F126 cancellation offsets some gains. Earlier this year, Rheinmetall had projected 40%-45% sales growth for 2026, citing ammunition restocking needs amid conflicts in Ukraine and the Middle East.
Shares fluctuated in early trading, initially dropping 3% before recovering to close 1.4% higher. The defense sector has seen robust order growth since Russia’s invasion of Ukraine in 2022, though project cancellations pose risks to long-term forecasts.