Financial report for first half of 2026 – Strong sales growth and record profitability
- Record growth: consolidated sales increase by 39% to €5.2 billion in the first half of the year
- Consolidated operating result climbs by €333 million from €453 million to €786 million – growth of 74%
- Operating result margin of 15.0% at Group level
- Rheinmetall Nomination significantly higher than last year at €16.2 billion
- Operating free cash flow at €-1,616 million – due to a shift in advance payments, inventory build-up and continued high levels of investment activity
- Revised annual guidance for 2026 following the decision on the F126
Rheinmetall AG, headquartered in Düsseldorf, has achieved remarkable growth in both sales and profitability during the first half of 2026. Consolidated sales surged by 39% year-on-year, reaching €5.2 billion, while the operating profit climbed by 74%, from €453 million to €786 million. The operating profit margin at the group level stands at an impressive 15.0%.
The current security policy landscape, characterized by increased defense budgets across various nations, continues to sustain demand within the military sector, maintaining a strong order book and favorable market conditions. Nevertheless, the anticipated business development for the 2026 fiscal year has been affected by the cancellation of the F126 frigate programme, leading to a sales forecast reduction of €300 million for the naval business. Consequently, the Group now projects total sales for the fiscal year to fall between €13.7 billion and €14.2 billion, upholding organic growth expectations of 28% to 31%.
Chief Executive Officer Armin Papperger commented on the performance: “We have achieved record growth and are well on track to meet our ambitious annual targets. This success is attributed not only to a robust order book and significant capacity expansion but also to the exceptional performance of our dedicated workforce. I wish to express my gratitude to the employees in our plants for their commitment and teamwork.” He also noted that the operating result margin was boosted to a new high of 17.1% in the second quarter.
Papperger added, “Strong demand persists, enabling us to secure major contracts domestically and internationally. Our book-to-bill ratio is commendably high at over 3, underscoring our prominence in land, maritime, aerial, and spatial defense sectors. We remain resolute in our commitment to fulfilling current contracts and securing new opportunities in the naval domain as a reputable partner renowned for expertise.”
In addition to sales growth, Rheinmetall reported the following highlights for the first half of 2026:
Sales Growth and Operating Results
Consolidated sales soared by 39%, reaching €5.227 billion, compared to €3.749 billion in the previous year. Domestic sales increased their share to 38%, with international sales comprising 62% of the total. The Group’s operating result rose significantly by 74%, totaling €786 million, with a remarkable 115% increase in the second quarter alone. This uplift is attributed to a favorable product mix and increased production efficiency.
Rheinmetall’s operating free cash flow declined by €985 million to €-1,616 million, attributed to shifted advance payments and increased inventory levels due to robust sales. The group’s order intake recorded a notable rise, with Rheinmetall Nomination at €16.2 billion, up 28% from the prior year’s €12.7 billion.
As of June 30, 2026, the Rheinmetall Backlog reached €80.5 billion, significantly increased from €56.0 billion in the previous year.
Performance by Segment
Within the Vehicle Systems segment, sales increased by 28% to €2.431 billion, driven mainly by deliveries of tactical vehicles and logistics solutions for German and European clients. The segment’s Rheinmetall Nomination surged to €6.691 billion, bolstered by expanded contracts for the Puma and Lynx infantry fighting vehicles, while the operating margin improved to 11.3%.
In the Weapon and Ammunition sector, sales rose by 33% to €1.757 billion, primarily due to heightened demand for artillery ammunition from Ukraine and Hungary. Rheinmetall Nomination in this segment experienced a 44% increase, amounting to €3.097 billion, reflecting major contracts from Romania and Poland.
The Air Defence segment demonstrated substantial growth, with sales up 62% to €478 million. Notable orders for the Skynex and Skyranger systems contributed to a staggering 517% increase in Rheinmetall Nomination, totaling €1.534 billion, while the segment registered an operating margin of 16.0%.
Rheinmetall’s Digital Systems segment also saw improvements, with sales rising 23% to €820 million. Despite a significant decrease in Rheinmetall Nomination due to last year’s overwhelming contract influences, this year’s new agreements ensured an increase in the backlog to €20.646 billion.
Newly established Naval Systems generated sales of €334 million in the first four months post-acquisition. A significant contract from Romania for constructing naval vessels highlights the growing importance of this segment, which concluded with a backlog of €6.255 billion as of the end of June 2026.
Outlook
Despite the recent adjustments caused by the cancellation of the F126 frigate programme, Rheinmetall anticipates consistent growth across other sectors. The company expects total consolidated sales between €13.7 billion and €14.2 billion for 2026. With planned capacity expansions and acquisitions, an operating margin of approximately 19% is anticipated for the year, reinforcing Rheinmetall’s commitment to bolstering its market position.
