Rheinmetall (RHM) Status Update summary

Order intake and sales guidance

• Q2 order intake expected above EUR 10 billion, mainly driven by large German ammunition and load handling system contracts, with net effect estimated between EUR 10-11 billion.

• Full-year order intake guidance raised to up to EUR 40 billion net, with backlog projected to reach around EUR 60 billion by year-end, reflecting strong momentum from German and international contracts.

• Q2 top line growth aligns with the annual growth rate guidance of approximately 40%.

• Major contributions in H2 expected from additional German tactical vehicle orders, digitization projects, and international air defense contracts.

• Truck order execution began in Q2, with main deliveries and profit recognition expected in Q3 and Q4.

Cash flow and prepayments

• German government now provides early cash prepayments, notably a 30% pre-delivery payment on the EUR 1 billion ammunition contract, supporting CapEx and working capital.

• Load handling system contract expected to help reduce working capital and contribute to revenue.

• No specific cash flow figures disclosed, but initial truck shipments from Austria to Germany began in Q2.

Profitability and earnings

• No new details on quarterly profitability; ramp-up costs in ammunition continue to impact earnings, with similar run rate expected in Q2 as in Q1.

• Ring swap agreements expected to contribute more in the remainder of the year.

• Seasonality guidance unchanged; Q2 margins expected to follow usual seasonal patterns.