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 expected to reach around EUR 60 billion by year-end, reflecting strong momentum from German and international orders.

• Q2 top line development is in line with the guided annual growth rate, targeting around 40% for the full year.

• Main Q3 sales contribution expected from truck deliveries, with all deliveries to be completed by end of November.

• Additional international orders, including air defense and trucks for Denmark, Hungary, Germany, and Canada, contribute to the raised guidance.

Contract structure and cash flow

• Major Q2 orders include a frame contract for ammunition (with first call-off), and fixed contracts for heavy weapon carriers and load handling systems.

• German government now provides early cash prepayments (30% of initial call-off, around EUR 1 billion) to support CapEx and working capital for new contracts.

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

• No specific comments made on overall cash flow, but truck shipments from Austria to Germany began in Q2, with majority of sales in Q3.

Profitability, seasonality, and ramp-up

• No new communication on quarterly profitability; ramp-up costs in ammunition remain consistent with Q1, and ring swap agreements expected to contribute more in the remainder of the year.

• Seasonality guidance unchanged; margins expected to follow usual patterns, with no major deviations discussed.

• Small bore pistons business no longer contributes to results as of April 1.