Rheinmetall Shares Fall 15% as Company Cuts 2026 Outlook Again

Rheinmetall shares fell as much as 15% in early trading Thursday after the German defense company cut its 2026 sales and operating-margin outlook for the second time since August, pointing to delays in military projects and ammunition deliveries.

The company now projects 2026 sales of about $14.9 billion, with an operating margin near 18.5%, down from its previous 19% target.

The German military's Arminius Boxer project is now expected to be commissioned next year. Rheinmetall also cited delays in artillery ammunition deliveries and setbacks in acceptance testing.

The revision came amid stronger third-quarter results: sales rose 32% year over year, and operating profit climbed 62%. Rheinmetall shares had entered Thursday down about 35% for the year, after averaging annual returns of 114% over the previous four years.

Germany scrapped a warship plan in August that would have been Rheinmetall's largest order since World War II. The company has been a major beneficiary of increased European military spending since Russia's full-scale invasion of Ukraine in 2022.