Germany · Delayed Price · Currency is EUR Rheinmetall AG Earnings Call Transcripts
Fiscal Year 2026
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Defense business is set for strong growth in 2025-2026, with major German and international orders driving revenue and backlog to record levels. Margins and cash flow remain robust, supported by prepayments and operational efficiencies, while the business portfolio is being streamlined.
Fiscal Year 2025
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Sales rose 29% to nearly EUR 10 billion in 2025, with operating margin at 18.5% and backlog at EUR 64 billion. Strong growth is expected in 2026, driven by major defense contracts and robust demand amid geopolitical tensions.
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Aiming for €50 billion in sales by 2030, the company is leveraging strong European defense demand, automation, and digitalization to drive 25%-40% annual growth. Major investments in capacity, new divisions, and M&A support expansion across land, naval, air, and space domains.
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Q3 2025 saw 13% sales growth and a 23% increase in backlog, driven by strong defense demand and major contract negotiations. Operating margin remains robust, with full-year defense sales expected to grow 35–40% and significant capacity expansions underway.
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Acquisition of Lürssen and disposal of the civil business mark a strategic shift to pure defense. Q3 saw low order intake due to late budget approval, but significant orders and prepayments are expected in Q4. Delays in ammunition and truck deliveries should not impact full-year results.
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Q2 2025 saw 9% sales growth and a 30% backlog increase, with defense margins strong despite delayed German orders shifting sales and cash flow to later quarters. Outlook remains robust, with defense sales expected to grow 35–40% and significant capacity expansion underway.
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Favorable macro trends and NATO commitments are driving strong defense sector momentum. Despite a slow Q2 due to order timing and operational disruptions, full-year guidance for sales, EBIT, and cash remains on track, with significant order acceleration expected in H2.
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Group sales surged 46% year-over-year, driven by defense growth and record margins, with a robust order backlog and strong cash flow. Major joint ventures and capacity expansions position the company for continued growth, while full-year guidance is confirmed despite minor operational delays.
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Order intake is projected at EUR 30–40 billion, with strong growth in defense and a backlog over EUR 80 billion expected by year-end. Vision 2030 targets up to EUR 40 billion in group sales, and a major Ukrainian contract is under discussion. Debt-free status is anticipated by Q3.
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Top line and margin growth remain on track, with strong defense order intake and a €54 billion backlog. Defense business is set for 30%+ growth in 2024, while civil business faces challenges. Long-term vision targets €30 billion sales by 2030.
Fiscal Year 2024
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Sales and operating profit surged, driven by defense, with a record backlog and strong cash flow. Capacity expansions and digitization are key growth drivers, while future performance hinges on political decisions and defense budgets.
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Q3 saw 40% sales growth and a 50% rise in operating profit, driven by defense orders and truck deliveries. The backlog reached €52 billion, with strong order intake and robust cash flow. Full-year guidance was raised, and major contracts and joint ventures underpin future growth.
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Q2 2024 delivered record sales and operating results, with strong order intake and backlog growth. Guidance for 2024 remains robust, supported by high visibility in defense contracts, capacity expansion, and a solid balance sheet.
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Q2 order intake exceeded EUR 10 billion, driven by major German contracts, with full-year guidance raised to EUR 40 billion net. Capacity expansion and supply chain measures are on track, and profitability guidance remains unchanged. International orders and joint ventures support growth momentum.