Rheinmetall Shares Plunge After Order Delays Force Arms Maker to Trim Guidance Again

By Mauro Orru

Rheinmetall shares slumped after the German defense group cut its annual forecasts for the second time this year as some lucrative orders faced delays, the latest setback for the company after it lost a big frigate order from the German government.

The company said it expected sales of roughly 13.2 billion euros ($14.82 billion) in 2026, below a prior guidance range of between 13.7 billion and 14.2 billion euros. Meanwhile, its operating margin should come in at about 18.5% for the year, below a prior forecast of around 19%.

Rheinmetall shares in Frankfurt plunged more than 16% on Thursday. Shares are down more than 50% over the past 12 months following a number of setbacks, including canceled orders and mixed financial results.

Rheinmetall had cut its sales projections in August after Germany scrapped a project to procure six F126 frigates. Berlin had complained of delays and cost increases with the project, and opted instead to purchase eight MEKO A-200 frigates from German shipbuilder TKMS.

This time, the group pointed to delays with a project dubbed Arminius under which Germany would launch a large-scale procurement of Boxer armored wheeled vehicles that would bring in more than 12 billion euros in sales to Rheinmetall, according to analysts' estimates.

Rheinmetall had expected a fixed contract by year end, but now says the project won't be commissioned until next year. It also said that revenue it had expected from weapons and ammunition wouldn't materialize in the fourth quarter.

The second downgrade to guidance is a setback to a company that had emerged as a key beneficiary of higher defense spending after Russia's invasion of Ukraine upended Europe's security architecture.

As members of the North Atlantic Treaty Organization diverted more and more weapons to aid Ukraine, European capitals have been placing a steady stream of orders with Rheinmetall and other defense groups to ensure they could replenish their own stockpiles. Repeated calls from U.S. President Trump for NATO members to fork out more on defense also helped keep defense spending elevated.

Now, Rheinmetall and other defense groups face uncertainty on the other side of the Atlantic. Defense stocks are under pressure after Democrats clinched majorities in both chambers of Congress, an outcome that analysts say could weigh on U.S. military spending and dent demand for contractors.

Rheinmetall's sales grew to 3.15 billion euros in the third quarter from 2.31 billion euros a year earlier, below analysts' forecast of 3.25 billion euros, according to Vara Research.

Operating profit grew to 553 million euros from 342 million euros, generating an operating margin of 17.5%. Analysts had forecast profit of 531.4 million euros and a margin of 16.3%, according to the consensus.

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

(END) Dow Jones Newswires

November 05, 2026 03:38 ET (08:38 GMT)