Rheinmetall stock volatile after trimming guidance as Germany's F126 warship cancellation hits sales outlook

Rheinmetall on Thursday trimmed its 2026 guidance after a cancelled project to make large warships for the German government fell through earlier this year.

The defense company now sees full-year sales in the range of 13.7 billion euros to 14.2 billion euros ($15.8 billion to $15.4 billion), 300 million euros lower than previous guidance.

It came as the company's sales grew 39% and profits grew 74% in the first half of the year.

Shares were volatile during early trading, with the stock initially opening about 3% lower. It then reversed course to trade up 2%. It was last seen hovering just below the flatline.

Sales came in at 5.2 billion euros over the period, driven by higher deliveries of military vehicles, ammunition, and air-defense systems, alongside a 334 million-euro contribution from its newly acquired naval division.

"We have achieved record growth and are well on the way to meeting our annual targets," CEO Armin Papperger said in a statement.

In March, Rheinmetall said it was targeting between 40% and 45% sales growth in 2026, as it expected to benefit hugely from governments restocking ammunition due to wars in Ukraine and Iran. At the time, it said it was in a "prime position to help the US replenish their missile stockpiles."

On Tuesday, Reuters reported that the U.S. had used virtually all of its long-range precision missiles during the Iran war, citing unnamed sources.