Rheinmetall shares tank after second guidance cut as defence contract delays bite

(Sharecast News) - Shares in Rheinmetall plunged on Thursday after the German defence group lowered its full-year outlook for the second time in three months, citing delays to military contracts and ammunition deliveries. The company now expects 2026 sales of around €13.2bn, down from previous guidance of €13.7bn-€14.2bn, while its operating margin is forecast at approximately 18.5%, compared with an earlier target of 19%.

Rheinmetall said the downgrade reflected delays to Germany's Arminius Boxer programme, which is now expected to be commissioned next year, alongside setbacks in artillery ammunition acceptance testing.

The stock fell sharply in early trading following the announcement. The latest downgrade comes after Rheinmetall cut guidance in August when Germany abandoned plans to build warships that would have represented the company's largest order since the Second World War.

Despite the weaker outlook, Rheinmetall reported strong third-quarter results, with sales rising 32% year-on-year to €3.15bn and operating profit increasing 62% to €553m. New orders totalled €2.89bn, taking the group's order backlog to €78bn at the end of September.

Reporting by Frank Prenesti for Sharecast.com