Rheinmetall Posts Rise in Sales, Expects Higher Growth

By Cristina Gallardo

Rheinmetall reported a rise in first-quarter sales and said it expects stronger growth in the next reporting period.

Germany's biggest arms manufacturer on Thursday posted sales of 1.94 billion euros ($2.28 billion) in the three months through March, up 8% on year, but below a consensus estimate of 2.27 billion euros compiled by Vara Research.

The Frankfurt-listed company, which published preliminary results earlier this week, said its order backlog increased 31% to around 73 billion euros at the end of March.

Rheinmetall Chief Executive Armin Papperger said that he expects stronger growth in sales and order intake in the second quarter, with large-volume orders in the naval and vehicles businesses, and full-scale production at the company's ammunition plant in Murcia, Spain, after an explosion last year.

Net profit for the period reached 111 million euros, compared with 84 million euros a year earlier, while the quarterly operating result--closely watched by analysts and investors--was 224 million euros, lifting its operating margin to 11.6% from 10.5%.

Analysts expected an operating profit of 261.9 million euros with an 11.6% operating margin.

For 2026, Rheinmetall said that it continues to forecast an increase in sales of between 14 billion and 14.5 billion euros, and an operating margin of around 19%.

Write to Cristina Gallardo at [e-mail]

(END) Dow Jones Newswires

05-07-26 0216ET