Rheinmetall disappoints with the results but soars on the stock market.
The shares of the German tank and artillery manufacturer gained up to 2.2% at the Frankfurt opening, following the market’s positive reception of growth prospects for the second quarter, after first-quarter revenues missed analysts’ expectations.
Ahead of schedule, last night Rheinmetall published some preliminary results showing revenue of 1.94 billion euros, up 7.7%, but below analysts’ forecasts of 2.3 billion euros. “The German arms giant’s first-quarter revenues fell short of expectations, as rising European defense budgets did not translate into a sufficient number of orders,” notes the Financial Times, highlighting how the German company’s shares remain under pressure due to concerns about profitability and doubts about the future of the war.
For its part, the company, which confirmed its revenue forecasts for 2026, stated it expects significant growth in the second quarter, driven by the resumption of full-scale production at its Murcia plant in Spain, and the planned delivery of military trucks to the German army.
The company led by Armin Papperger will publish full first-quarter results on Thursday.
All the details.
REVENUES BELOW EXPECTATIONS
In the first quarter of 2026, the company’s revenue increased by 8% compared to the same period last year, reaching 1.94 billion euros. However, analysts expected revenues of at least 2.3 billion euros. The company attributed the revenue decline partly to a tough comparison with the previous period, as defense sector sales for the first quarter of 2025 had increased by 73% thanks to advances.
PROFITS
Operating profit, although up 17% or 33 million euros year-on-year to 224 million euros, with a sales margin of 11.6% compared to 10.5% the previous year, was below expectations of 240 million euros, according to Bloomberg data.
ORDER BOOK
As of March 31, 2026, Rheinmetall currently has an order book of over 73 billion euros, 31% higher than the previous year.
GUIDANCE
Rheinmetall confirmed its full-year target of sales growth between 40 and 45%, with an operating margin of around 19%. In March, the company had forecast annual revenue between 14 and 14.5 billion euros and an operating margin of about 19%.
WHAT’S HAPPENING TO RHEINMETALL STOCK
Despite first-quarter data, Rheinmetall shares still rose this morning after the largest European arms manufacturer reiterated its full-year revenue growth forecasts. The Düsseldorf-based company’s shares gained up to 2.2% at the Frankfurt opening. The stock has lost 10% this year, after more than doubling its value both in 2025 and the previous year.
The price of Rheinmetall shares soared from about 83 euros per share at the end of 2021 to an all-time high of around 2,000 euros last September.
However, despite a continuously growing order book, the share price has fallen about 30% from the September peak, due to investor concerns about the company’s ability to translate rising European defense spending into profits and its capacity to ramp up production to meet huge demand, the FT highlights.
ANALYSTS’ COMMENT
“In our view, investors are now much more focused on Rheinmetall’s performance compared to the 2022-2025 period, so the pre-release of results could worry some investors,” note JP Morgan analysts, while adding that the company’s forecasts for a stronger second quarter are credible, reports Reuters.
