Rheinmetall (RHM) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales reached €3.289 billion, up 69% year-over-year, with H1 sales at €5.2 billion, a 39% increase, driven by strong defense demand and major contract wins.

• Operating result surged 115% in Q2 to €562 million and 74% in H1 to €786 million, with margins improving to 17.1% in Q2 and 15.0% in H1.

• Backlog rose to over €80 billion, up 44%, with 70% as fixed orders, providing strong sales visibility for the next 2.5 years.

• Major contract wins included Romanian package (~€5.7 billion), German Army ammunition, UK CTTP, and Puma vehicles for Germany.

• The F126 naval contract was lost, reducing sales expectations by €300 million, but new frigate and international programs are being pursued.

Financial highlights

• Q2 sales: €3.289 billion (+69% YoY); H1 sales: €5.2 billion (+39% YoY); operating result: €562 million in Q2 (+115% YoY), €786 million in H1 (+74% YoY); margin: 17.1% in Q2, 15.0% in H1.

• Operating free cash flow: -€1,616 million in H1, mainly due to inventory build-up and delayed down payments.

• CapEx for 2026 reduced to 8–9% of sales due to rescheduling of energetics plant investments.

• Equity ratio at 28% after naval business acquisition; net financial position at -€2.7 billion.

• Basic EPS from continuing operations for H1 2026 was €8.43, up from €4.69 in H1 2025.

Outlook and guidance

• Full-year sales guidance for 2026 revised to €13.7–14.2 billion (organic growth 28–31%) after F126 contract loss.

• Operating margin expected around 19%; cash conversion rate above 40%.

• Backlog coverage of 95% for 2026 sales; book-to-bill ratio above 3 in Q2.

• Backlog expected to reach €100–120 billion by end of 2026, depending on contract timing.

• No impact expected on 2027–2028 revenues from CapEx delays; 30%+ annual growth seen as achievable.