Armaments industry: Delays in orders – Rheinmetall lowers forecast

Frankfurt. The defense company Rheinmetall is lowering its expectations for the current year due to delays in major orders. Sales in 2026 are now expected to be around 13.2 billion euros, the Düsseldorf-based company announced on Wednesday. Rheinmetall had previously promised 13.7 to 14.2 billion euros. The operating return is expected to fall to around 18.5 percent from the previously targeted around 19 percent.

The reason for the subdued expectations is, among other things, a likely delay in the order for the boxer wheeled tank project “Arminius”. The forecast will be adjusted “since the corresponding incoming orders can no longer be expected in 2026”. In addition, it is foreseeable that there will be delays in the acceptance of lots in the artillery ammunition business. “These sales will accordingly be postponed until 2027.”

In the “Arminius” project, the Bundeswehr is planning a comprehensive order of Boxer wheeled armored vehicles in various vehicle variants, which will be produced by Rheinmetall and KNDS. In industry circles there had been talk of up to 3,000 vehicles in the past.

In August, CEO Armin Papperger was still confident in an interview with the Reuters news agency that there would be a contract with the federal government by the end of the year. He had estimated the volume of an initial order for Rheinmetall at 12.4 billion euros. Further orders and service orders should follow.

In the third quarter, however, the group recorded significant growth. Sales rose by 32 percent to 3.15 billion euros. The operating result climbed by 62 percent to 553 million euros, which improved the operating margin from 14.8 to 17.5 percent. Order intake was 2.89 billion euros.