Rheinmetall (RHM) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales reached €3.289 billion, up 69–70% year-over-year, with H1 sales at €5.2–5.5 billion, a 39–40% 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 Q2 margin at 17.1% and H1 margin at 15.0%, reflecting improved product mix and leverage.

• Backlog expanded to €80–80.5 billion, up 44%, with 70% as fixed orders, providing strong sales visibility and high book-to-bill ratio above 3.

• Major contract wins include a €6 billion Romanian package, €12.4 billion vehicle contract, and €3.5 billion Puma order for Germany; NVL acquisition expanded naval capabilities.

• Civilian business classified as discontinued operations, with a €350 million sale agreement expected to close in Q4 2026.

Financial highlights

• Q2 sales: €3.289–3.3 billion (+69–70%); H1 sales: €5.2–5.5 billion (+39–40%).

• Operating result: €562 million in Q2 (+115%); €786 million in H1 (+74%); margin: 17.1% in Q2, 15.0% in H1.

• Negative operating free cash flow of €-1.3 to -1.6 billion in Q2/H1, mainly due to inventory build-up and delayed payments.

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

• Basic EPS from continuing operations for H1 2026 was €8.43.

Outlook and guidance

• Full-year 2026 sales guidance revised to €13.7–14.2 billion (organic growth 28–31%), reflecting a €300 million reduction due to F126 frigate contract loss.

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

• Backlog coverage for 2026 sales at 95%, with book-to-bill ratio above 3.

• CapEx for 2026 guided at 8–9% of sales, with no impact on 2027–2028 revenue targets.