Rheinmetall (RHM) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales grew 40% year-over-year to €2.5 billion, with operating result up 52% to €302 million and margin at 12.3%, driven by strong vehicle systems and major military contracts.

• Backlog reached a record €51.9 billion (+41% YoY), with Q3 order intake exceeding €6 billion and major nominations totaling €6.1 billion.

• Strategic alliances and acquisitions, including Leonardo JV, Loc Performance, and partnerships with Honeywell and MBDA, support long-term growth.

• Defense segment saw 55% sales growth and 15.3% EBITDA margin, while civilian business remained flat.

• Group structure reorganized, with Power Systems formed from Sensors & Actuators and Materials & Trade as of January 2024.

Financial highlights

• Q3 sales: €2.5 billion (+40% YoY); operating result: €302 million (+52% YoY); operating margin: 12.3%.

• Earnings per share increased by 32% year-over-year to €3.11.

• Operating free cash flow in Q3 was €118 million, up €221 million sequentially and €527 million year-over-year.

• CapEx accelerated to €182 million (7.4% of sales).

• Cash position at €474 million at Q3 end; undrawn credit lines of €1.3 billion and €750 million commercial paper available.

Outlook and guidance

• Full-year 2024 sales expected around €10 billion, with operating margin near 15%.

• Defense EBITDA margin projected at nearly 18%; civilian business expected to underperform but offset by defense.

• Operational free cash flow guidance raised to over 40%, with €700 million to €1 billion expected.

• Order intake guidance range set at €30–40 billion due to some project delays into 2025.

• High sales coverage (>95%) and strong Q4 inventory position underpin confidence in meeting guidance.