The German arms company Rheinmetall obtained a net profit of 295 million euros in the first half of the year, 11.7% more than the 264 million recorded in the same period of 2025, according to the company communicated this Thursday, which has lowered its targets for 2026 following the cancellation of the F126 frigate program.
As a direct effect of the cancellation of this contract, the group's revenue forecast for the naval area and for the entire company has been reduced by 300 million euros in the current fiscal year.
In this way, Rheinmetall now estimates that the revenue for the 2026 fiscal year will be between 13.7 billion and 14.2 billion euros, compared to 9.935 billion in 2025, which represents an organic sales growth of between 28% and 31%. Likewise, the company expects the group's operating profit margin to reach around 19%, above the 18.5% recorded the previous year.
The multinational closed the first half with a historic surge in both sales and profits. In the first six months of the 2026 fiscal year, the group has been boosted by the international security context, marked by a strong increase in defense budgets in numerous countries, which has ensured sustained demand in the military sector.
Between January and June, the consolidated revenue grew by 39% year-on-year, reaching 5.227 billion euros, compared to the 3.749 billion recorded in the same period of 2025. The proportion of sales generated in Germany increased by five points, to 38%, while the remaining 62% corresponded to international markets.
The consolidated operating result of the German group soared by 74%, to 786 million euros, from 453 million in the first half of the previous fiscal year. In the second quarter, the operating result increased by 115%, rising from 262 million to 562 million euros.
As a result, the operating profit margin at the group level stood at 15%, above the 12.1% recorded a year earlier.
The "Rheinmetall Nomination" indicator (which combines the traditional order intake with the volume of new framework agreements) advanced by 28%, to 16.2 billion euros, raising the total order book as of June 30 to 80.5 billion euros, compared to 56 billion on the same date the previous year.
In contrast, the operating free cash flow deteriorated by 985 million euros, to stand at -1.616 billion euros (compared to the previous -631 million), due to the shift in the collection schedule of advance payments, the increase in accounts receivable, the rise in inventories, and the maintenance of the investment pace.
Sales in arms and ammunition increase by 33%
By business areas, Rheinmetall's "Vehicle Systems" division raised its sales by 28%, to 2.431 billion euros, while its operating result went from 179 million to 275 million euros.
The arms and ammunition branch of the German group generated 1.757 billion euros until June (+33%) and achieved an operating result of 417 million euros (compared to the previous 280 million), while the "Air Defence" segment recorded sales of 478 million euros (+62%) and an operating result of 76 million euros.
The naval business, which was integrated as an independent segment at the end of February, contributed in its four months of consolidation sales of 334 million euros and an operating result of 33 million euros, while the digital systems division increased its revenue by 23%, to 820 million euros, with an operating result of 63 million euros.