Rheinmetall (RHM) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales surged 49% year-over-year to €2.234 billion, with operating result up 110% to €270 million and margin at 12.1%.

• Record order intake reached €11.443 billion (+180%), driving backlog to €48.6 billion (+62%).

• Major contracts included a €7.1 billion 155mm ammunition agreement, Boxer, NNbS, Puma AGDUS, and strategic partnerships with Leonardo and Lockheed Martin.

• Workforce expanded by 3,573 employees year-over-year, reflecting strong hiring and operational growth.

• Localization in Ukraine and new product launches at Eurosatory 2024 further strengthened market position.

Financial highlights

• Sales rose 49% year-over-year to €2.234 billion in Q2; operating margin increased to 12.1%.

• EPS from continuing operations up 142% to €3.61; adjusted EPS at €3.08.

• Operating free cash flow improved to €169 million in Q2, up €388 million year-over-year.

• Net debt/EBITDA at 1.02x; net financial position at -€1.431 billion; cash position €549 million.

• Capex at €169 million; FTEs increased by 16% to 3,573.

Outlook and guidance

• Full-year 2024 sales guidance is around €10 billion, with operating margin expected at 14–15%.

• Cash conversion rate projected at 40%, supported by strong customer prepayments.

• Management expects 20%+ annual growth through 2026, with capacity nearly fully booked for the next two years.

• High sales coverage (91%) and strong order book provide confidence for H2 2024, which is expected to deliver over 60% of annual sales.

• Segment guidance: Vehicle Systems margin 12–13%, Weapon and Ammunition 25–26%, Electronic Solutions 12–13%, Power Systems around 7%.