Arms Maker Rheinmetall Trims Sales Guidance After Germany Scraps Frigate Project

By Mauro Orru

Rheinmetall lowered its sales forecasts for the year after Germany scrapped a project to procure what could have been the country's biggest class of warship since the end of World War II.

The group said it expected annual sales between 13.7 billion euros and 14.2 billion euros, equivalent to a range from $15.83 billion to $16.41 billion. Those projections are above sales of nearly 9.94 billion euros that Rheinmetall reported last year, but below prior guidance between 14 billion and 14.5 billion euros.

Rheinmetall reported sales of 3.29 billion euros for the second quarter compared with 1.95 billion euros a year earlier, in line with preliminary figures. Analysts had forecast 3.16 billion euros in revenue, according to Vara Research.

Net profit slipped to 124 million euros from 130 million euros. Operating profit climbed to 562 million euros from 262 million euros, also in line with preliminary figures, generating an operating margin of 17.1%. Analysts had forecast a net profit of 270.3 million euros, an operating profit of 469.9 million euros and an operating margin of 14.9%, according to the consensus.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

August 06, 2026 02:08 ET (06:08 GMT)