Rheinmetall (RHM) Pre-close call summary

Executive summary

• Only the defense business will be disclosed for 2025, with the automotive business reported as discontinued; NVL business expected to be closed in Q1 2026, with 10 months consolidated for 2026 onwards.

• Defense business is projected to grow 30%-35% in 2025, with margins of 18.5%-19%.

• Major German defense orders totaling EUR 67 billion are expected over the next four quarters, with additional international orders from Romania, Italy, and Ukraine.

• Arminius contract for Boxer vehicles includes EUR 12.5 billion fixed until 2030 and a EUR 25 billion option for 2030-2035.

Trading performance and revenue trends

• Defense business revenue for 2026 is expected at EUR 15-16 billion (including NVL), with a 12% consolidation effect.

• Segment breakdown for 2026: ammunition EUR 5 billion, vehicle systems up to EUR 6 billion, digital systems EUR 2 billion, air defense EUR 1 billion, naval up to EUR 1.5 billion.

• Ammunition business expected to grow from EUR 3.5 billion to EUR 5 billion in 2026.

Profitability and margins

• Operating margin for 2026 is guided at 18%-20% (net figure, including consolidation).

• Margin for 2025 expected in the range of 18.5%-19%.