Rheinmetall cuts full-year forecast despite profit rise

German Rheinmetall, a company specializing in defense industries, has lowered its revenue forecast for 2026 to between 13.7 and 14.2 billion euros, equivalent to approximately 15.8 to 16.4 billion dollars, following the cancellation of a major warship manufacturing project for the German government. This comes despite strong growth in sales, which increased by 39%, and profits, which rose by 74% during the first half of the year. The revision reflects the impact of the project’s cancellation on the outlook, even though the company saw an increase in sales due to higher deliveries of military vehicles, munitions, and air defense systems, as well as its acquisition of a shipbuilding unit valued at 334 million euros. Despite its solid performance, the company's stock has declined by about 25% since the beginning of the year amid investor concerns about defense companies’ ability to meet their rising orders due to implementation complexities and soaring costs.

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