Rheinmetall lowered its 2026 sales outlook after the German government scrapped a delayed frigate programme. The new range is €13.7 billion to €14.2 billion, down from €14.0 billion to €14.5 billion, reflecting a €300 million hit to its naval division.

The company also trimmed its order‑book guidance to more than €100 billion from roughly €135 billion and cut its capex target to 8‑9 % of sales from 16 %. Free‑cash‑flow conversion and margin targets remain unchanged, and record growth is still on track.

JPMorgan analysts noted the cancellation may affect results beyond 2026, with downgrades hinting at slower growth in 2027‑28. Rheinmetall reported a 70% jump in Q2 sales to about €3.3 billion, though shares fell 4% before settling 1.2% down.

After acquiring Luerssen’s warship division and eyeing German Naval Yards Kiel, the company’s momentum was dampened. CEO Armin Papperger said they will continue to fulfill maritime orders and secure new ones internationally.