RHM GY : Reports Q3 Op €553M v €534.4Me, Rev €3.15B v €e; Cuts FY outlook due to delays in boxer project and artillery ammunition
- Cuts FY26 Rev €13.2B v €13.9Be, opr margin ~18.5% (prior: Rev €13.7- 14.2B, opr margin ~19%)
- Comments: Despite this again positive quarterly development, the annual forecast for 2026 has to be adjusted due to the likely delayed commissioning in the Arminius project, since the corresponding order intake in 2026 can no longer be expected. This means that the down payments and revenue contributions associated with the project must be moved to the new year.
In the area of weapons and ammunition, not all originally planned revenue opportunities in the current financial year will be possible in the fourth quarter of 2026 in the area of new business activities, in particular in cooperation with the Dutch company Destinus. For the business with artillery ammunition, it is now foreseeable that there will be delays in lottery acceptances. These revenues will therefore be shifted to 2027.
Therefore, Rheinmetall is making an adjustment to the full-year expectation: Rheinmetall now expects sales to be around 13.2 billion. Euro instead of the previously planned 13.7 - 14.2 billion Euro. The operating margin drops slightly to the value of around 18.5% of around 19% so far, which is explained by the now changed product mix of annual sales. Furthermore, the OFCF is expected to be positive for the full year. The original guidance, on the other hand, assumed a cash conversion rate of over 40% due to the expected down payments in the Arminius project.