Rheinmetall (RHM) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales reached €3,289 million, up 69% year-over-year, with H1 sales at €5,227 million, a 39% increase, driven by strong defense demand and major contract wins.

• Operating result rose 115% in Q2 to €562 million and 74% in H1 to €786 million, with margin improving to 17.1% in Q2 and 15.0% in H1.

• Backlog surged to over €80 billion, up 44%, with 70% as fixed orders, providing strong sales visibility.

• Major contract wins included a €6 billion Romanian package, €12.4 billion fixed vehicle contract, and significant orders from Germany and other NATO countries.

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

Financial highlights

• Q2 sales up 69% to €3,289 million; organic growth exceeded 50% in Q2, with all segments contributing.

• EBIT for H1 rose to €664 million from €385 million year-over-year; earnings after taxes for H1 were €295 million, up from €264 million.

• Operating free cash flow was negative €1,616 million in H1, mainly due to inventory build-up and delayed down payments.

• Equity ratio declined to 28% following acquisitions and inventory expansion.

• Net financial position at minus €2,722 million, reflecting acquisition financing and bond issuance.

Outlook and guidance

• Full-year 2026 sales guidance revised to €13.7–14.2 billion (organic growth 28–31%) after F126 contract cancellation.

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

• Backlog covers 95% of 2026 sales; H2 expected to be back-end loaded with a strong order pipeline.

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