Rheinmetall lowered its full-year revenue and operating-margin targets after delays pushed expected business into 2027. The revision, announced late on 4 November, was followed by a sharp fall in the German defence group's shares on 5 November.
The company now expects annual sales of about €13.2 billion, down from a previous range of €13.7 billion to €14.2 billion. Its operating-margin target falls to about 18.5% from around 19%.
Orders do not become revenue overnight
A major issue is the timing of Germany's Arminius Boxer vehicle programme. Rheinmetall no longer expects the contract award this year, moving associated revenue and advance payments beyond the current reporting period.
Slower approvals for ammunition batches also delayed sales. These are important distinctions in a fast-growing defence market: political demand, contract awards, production and accepted deliveries do not necessarily occur in the same financial year.
Growth and disappointment can coexist
Nine-month sales still increased 38% to €8.4 billion, while the operating result rose 69% to about €1.34 billion. The guidance cut therefore reflects a gap between strong growth and still higher expectations, rather than an outright fall in sales.
Shares were down roughly 16% to 17% in intraday reporting, a market reaction rather than a confirmed closing figure. The company continues to expect positive annual operating free cash flow, but dropped its cash-conversion target above 40%. The next test is whether postponed contracts and deliveries materialise on the revised timetable.
