Rheinmetall Crashes Most In Months After Guidance Cut (Again) On Military Ramp-Up Risk
Rheinmetall AG shares plunged the most since late June in European trading after the German defense manufacturer slashed its annual sales forecast for the second time in months. Berenberg analysts pointed out that "Weapon & Ammunition drives most of the guidance cut."
The company, which makes tanks and armored vehicles, artillery, ammunition, air-defense systems and military electronics, now expects 2026 revenue of about $14.8 billion, down from its previous forecast of $15.37 billion to $15.93 billion. The operating margin forecast was also pared down to 18.5% from 19%. A guidance cut in August followed Germany's cancellation of orders for six F126 frigates.
Berenberg defense analyst George McWhirter provided a first-take analysis of the earnings release: em>Weapon & Ammunition drives most of the guidance cut: Rheinmetall's Q3 release this morning provides more detail following the Q3 pre-release and full-year guidance downgrade yesterday evening. Weapon & Ammunition drives most of the cut to the full-year guidance, with the remainder attributed to Vehicle Systems. There is no updated order intake guidance provided. The downgrade highlights the execution and order intake risk, stemming from the significant ramp-up in defence programmes to 2030, which poses a risk to medium-term estimates, in our view. Key details to look out for on the conference call at 1pm UK time (2pm CET) include the company's updated estimate on the timing and size of the Arminius contract award, as well as the company's Q4 order intake expectations. We expect the shares to underperform.
The second outlook cut in months briefly triggered a trading halt in Frankfurt. Shares plunged more than 18%, pushing the stock to a 52-week low. Much of the blame for the earnings cut centered on delays in its Boxer armored vehicle program.
In Europe and the US, defense stocks tracked by Goldman were hammered on Wednesday after the Democratic Party's sweep in the US midterms raised concerns that a rearmament supercycle could be derailed.
According to Bloomberg data, 24 analysts are "Buy" rated on the stock, while 5 hold "Neutral" ratings, and zero sell.
The Goldman US Defense index has slumped toward 2026 lows amid fears that Democrats will slash the military budget next year.
... and how will the West meet the massive surge in demand for arms driven by Ukraine and US demands if Democrats are expected to slash budgets?
Tyler Durden Thu, 11/05/2026 - 07:20
Continue reading...
[ H/T ZeroHedge ]
Rheinmetall AG shares plunged the most since late June in European trading after the German defense manufacturer slashed its annual sales forecast for the second time in months. Berenberg analysts pointed out that "Weapon & Ammunition drives most of the guidance cut."
The company, which makes tanks and armored vehicles, artillery, ammunition, air-defense systems and military electronics, now expects 2026 revenue of about $14.8 billion, down from its previous forecast of $15.37 billion to $15.93 billion. The operating margin forecast was also pared down to 18.5% from 19%. A guidance cut in August followed Germany's cancellation of orders for six F126 frigates.
Berenberg defense analyst George McWhirter provided a first-take analysis of the earnings release: em>Weapon & Ammunition drives most of the guidance cut: Rheinmetall's Q3 release this morning provides more detail following the Q3 pre-release and full-year guidance downgrade yesterday evening. Weapon & Ammunition drives most of the cut to the full-year guidance, with the remainder attributed to Vehicle Systems. There is no updated order intake guidance provided. The downgrade highlights the execution and order intake risk, stemming from the significant ramp-up in defence programmes to 2030, which poses a risk to medium-term estimates, in our view. Key details to look out for on the conference call at 1pm UK time (2pm CET) include the company's updated estimate on the timing and size of the Arminius contract award, as well as the company's Q4 order intake expectations. We expect the shares to underperform.
The second outlook cut in months briefly triggered a trading halt in Frankfurt. Shares plunged more than 18%, pushing the stock to a 52-week low. Much of the blame for the earnings cut centered on delays in its Boxer armored vehicle program.
In Europe and the US, defense stocks tracked by Goldman were hammered on Wednesday after the Democratic Party's sweep in the US midterms raised concerns that a rearmament supercycle could be derailed.
According to Bloomberg data, 24 analysts are "Buy" rated on the stock, while 5 hold "Neutral" ratings, and zero sell.
The Goldman US Defense index has slumped toward 2026 lows amid fears that Democrats will slash the military budget next year.
... and how will the West meet the massive surge in demand for arms driven by Ukraine and US demands if Democrats are expected to slash budgets?
Tyler Durden Thu, 11/05/2026 - 07:20
Continue reading...
[ H/T ZeroHedge ]
