Rheinmetall Shares Plunge 16 Percent After Second Guidance Cut This Year

Rheinmetall shares fell sharply in Frankfurt on Thursday, November 5, 2026, after the German defence group cut its annual forecasts for the second time this year. The stock was down nearly 16 percent at 844.5 euros by 1027 GMT, Reuters reported. The Wall Street Journal put the fall at more than 16 percent during the session.

The company now expects revenue of about 13.2 billion euros in 2026. Its previous range was 13.7 billion to 14.2 billion euros. The operating margin is now expected at about 18.5 percent, down from about 19 percent previously, Reuters reported.

The Boxer delay sits at the centre

The main cause is timing on big programmes. Rheinmetall pointed to delays with Arminius, a large German procurement of Boxer armoured wheeled vehicles. Analysts estimate the programme would bring in more than 12 billion euros in sales to Rheinmetall, the Wall Street Journal reported. The group had expected a fixed contract by the end of this year. It now says the project will not be commissioned until next year.

Ammunition added to the gap. Revenue expected from weapons and ammunition will not land in the fourth quarter, and reporting on the company release said artillery ammunition revenue is being pushed back because batch approvals are moving more slowly than planned. The company also now expects cash conversion of just over 0 percent, compared with an earlier goal of more than 40 percent.

"While the [Boxer] order delay should not come as a big surprise, it undermines management's targets and credibility, again," Bernstein analysts wrote in a note reported by the Wall Street Journal.

Sales are still growing

The cut was not driven by shrinking sales. Rheinmetall reported sales of 8.4 billion euros in the nine months to the end of September, up 38 percent from a year earlier, Reuters reported. Third quarter sales grew to 3.15 billion euros from 2.31 billion euros a year earlier, below the 3.25 billion euros analysts had forecast according to Vara Research. Operating profit grew to 553 million euros from 342 million euros, a margin of 17.5 percent, ahead of the 531.4 million euro consensus, the Wall Street Journal reported.

A hard year for the stock

Thursday's cut follows an earlier one. In August, Germany scrapped a project to procure six F126 frigates, and Rheinmetall cut its sales projections after losing that order. The shares are now down more than 50 percent over the past 12 months after a run of setbacks that included cancelled orders and mixed results, the Wall Street Journal reported.

The new guidance sets the test for the rest of the year. The Arminius award has moved into next year, ammunition revenue has slipped with it, and investors are being asked to judge the group on orders that have not yet been signed.