Rheinmetall (RHM) investor relations material

Executive summary

• Q3 sales rose 36% YoY to €3.149bn; adjusted operating result increased 62% to €553m and margin reached 17.5%.

• Q1–Q3 sales rose 38.3% to €8.376bn and operating result increased 68.5% to €1.339bn; backlog reached €78.012bn, up 37.7%.

• FY 2026 sales guidance was reduced to ~€13.2bn and margin guidance to ~18.5%, mainly due to project delays and ammunition acceptance timing.

Financial highlights

• Q3 reported EBIT was €515m versus €294m; earnings after taxes were €347m versus €202m.

• Q3 operating free cash flow was -€82m, improving €85m YoY; working capital reached nearly €2.2bn, with Weapon and Ammunition and Air Defence accounting for most of the increase.

• Q3 nominations totaled €2.893bn; September backlog was €78.012bn, up 38% YoY, with fixed orders at 70% versus 58% a year earlier.

• Q1–Q3 operating free cash flow was -€1.698bn, reflecting inventory build and working capital to support growth; prior-year cash flow benefited from customer advances.

• Q1–Q3 continuing-operations earnings were €786m; earnings after taxes were €643m, including a €144m discontinued-operations loss.

Outlook and guidance

• FY 2026 sales guidance fell from €13.7bn–€14.2bn to ~€13.2bn; operating margin guidance declined from ~19% to ~18.5%.

• FY 2026 operating free cash flow is expected to be positive, with cash conversion above 0%; guidance excludes Arminius prepayments.

• Arminius signing is expected in Q1 2027 after detailed customer price audits; related advance payments and sales contributions shift to FY 2027.

• Weapon and Ammunition guidance is €4.4bn–€4.5bn sales and 28%–29% margin; Destinus contributions and artillery-batch acceptances are below prior expectations.

• Full-year CapEx remains guided above €1bn; 2027 and longer-term guidance will be addressed at Capital Markets Day.