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Rheinmetall Lowers 2026 Guidance After German F‑126 Frigate Cancellation

Investors were rattled by an expected €300 million hit prompting management to seek new naval or large‑vehicle contracts to replace lost work.

Rheinmetall is one of the major beneficiaries of a European military buildup driven by Russia's invasion of Ukraine and doubts about long-term US security commitments

Overview

  • Rheinmetall disclosed Thursday that it cut full‑year revenue guidance by about €300 million to a range of €13.7 billion to €14.2 billion after Berlin cancelled the F‑126 frigate programme.
  • The company said it now expects roughly a €300 million loss tied directly to the scrapped frigate work.
  • Despite the setback, first‑half revenue rose 39% to €5.2 billion and operating profit climbed 74% to €786 million, driven by higher vehicle, ammunition and air‑defence deliveries.
  • Order backlog exceeded €80 billion following €11.4 billion of new awards in the quarter, including a €5.7 billion contract with Romania and €334 million of H1 sales from the recently acquired Naval Vessels Lürssen business.
  • Management has urged pursuit of other naval programmes and larger land‑vehicle deals — notably ongoing Boxer vehicle talks — and investors will watch contract wins and delivery performance as signs the company can replace the lost work and meet heavy demand.