Rheinmetall (RHM) Pre-close call summary

Executive summary

• German defense budget for 2027 is projected at EUR 145 billion, a 21% increase over 2026, supporting mid-term visibility in domestic markets.

• A more detailed budget draft is expected soon, ahead of the parliamentary summer recess.

Trading performance and revenue trends

• On track for Q2 quarter-over-quarter growth above 40%, with H1 growth rate expected at 35%-40%.

• Growth driven by project ramp-ups, EUR 100 million from Murcia restart, and EUR 200 million from trucks and Vehicle Systems.

• Total nomination volume for Q2 expected to reach low double digits of EUR 1 billion.

Profitability and margins

• Disposal of Power Systems signed for EUR 350 million, closing expected in Q4.

• Transaction includes an additional EUR 200 million non-cash impairment.