The German government’s decision not to order six F126 frigates has prompted Rheinmetall to lower its annual sales forecast. The company now expects revenue between $15.83 billion and $16.41 billion, a range that remains above last year’s nearly 9.94 billion euros but below its previous guidance of 14‑14.5 billion euros.

The cut follows Berlin’s announcement of a 15.2‑billion‑euro cancellation, citing delays and cost overruns, and the choice to buy eight MEKO A-200 frigates from TKMS instead. Rheinmetall warned the move would weigh on Q2 orders and that its naval systems division could see up to 300 million euros in lost sales if the impact is not mitigated.

Despite the downgrade, the revised outlook still exceeds last year’s performance, indicating that the company expects other business lines to offset the lost frigate revenue. The adjustment reflects a broader shift in Germany’s defense procurement strategy amid rising costs and delivery challenges.