German defense firm Rheinmetall posts €562 million operating profit, exceeding forecasts amid strong military equipment sales.
Rheinmetall reported a second-quarter operating profit of €562 million, surpassing market expectations of €470 million. The gain was driven by a nearly 70% year-over-year revenue increase to €3.3 billion, fueled by rising demand for military hardware across all segments.
The company had previously guided for over 60% revenue growth for the period. Despite the profit beat, Rheinmetall warned of significantly negative operating free cash flow due to timing shifts in advance payments.
Rheinmetall’s order backlog climbed to €80 billion after securing €11.37 billion in new contracts, including a German military deal for loitering munitions. Full half-year results will be released on August 6.