Rheinmetall AG
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5-year stock timeline
2026 — H1 strong growth; guidance reaffirmed and backlog near record
H1 2026 consolidated sales reached €5,227 million, up 39% year-on-year from €3,749 million in H1 2025. Rheinmetall reported record profitability and reaffirmed full-year guidance in August 2026, raising medium-term emphasis on German and naval business lines. The company guided to 2026 sales in a range of approximately €13.7–14.5 billion with an operating result margin of around 19%.
Investor perception shifted toward viewing Rheinmetall as a scaling defence compounder executing large programmes and capturing Germany's rearmament spend. Analysts focused on margin conversion and cash flow timing given the heavy backlog delivery requirements ahead.
2026 Q1 (May 2026) — Q1 results, large backlog, mixed market reaction
Q1 2026 consolidated sales totaled €1,938 million, representing modest year-on-year growth of 7.7% from €1,800 million in Q1 2025. Management highlighted a very large backlog and reaffirmed full-year guidance, with backlog growth becoming a headline metric.
Investors interpreted the results as evidence of lumpy defence deliveries, with near-term revenue appearing light relative to backlog size. The perception took shape around a long runway from a very large order book but with expected short-term volatility in reported quarters.
2025 — Record revenue and margins; strategic repositioning toward pure-defence
Full-year 2025 consolidated sales reached €9,935 million, up 29% year-on-year from €7,715 million in 2024. Operating result climbed to €1,841 million, up 33% year-on-year, with an operating result margin of 18.5%. EBIT totaled €1,684 million. Earnings per share from continuing operations reached €22.73, with a proposed dividend of €11.50 per share.
Backlog expanded to €63.8 billion as of December 31, 2025, up from €46.9 billion the prior year. The company announced a carve-out and sale process for automotive activities while reorganising toward defence systems, introducing new reporting segments: Vehicle Systems, Weapon & Ammunition, Air Defence, Digital Systems, and Naval Systems.
Market perception consolidated around Rheinmetall as a defence-first systems integrator benefiting from European rearmament. Investors rewarded visible scale, higher margins and a clearer strategic focus away from cyclical automotive parts.
2024 — Backlog acceleration and confirmatory quarterly beats
Throughout 2024, Rheinmetall repeatedly reported record backlog growth with several quarters posting sales and earnings well above expectations, driven by major framework agreements and state orders. Full-year 2024 consolidated sales reached approximately €9.75 billion. Backlog reached €55.0 billion on December 31, 2024 and €51.9 billion at September 30, 2024.
Preliminary Q2 2024 sales totaled approximately €2,234 million with operating profit of around €271 million. Investor view evolved from cyclical industrial to strategic defence play, with growing belief that framework agreements and state procurement would sustain multi-year growth and justify higher valuations, though some cautioned reliance on government procurement timing.
2023 — Continued backlog build and notable programme awards
Rheinmetall won multiple programme awards and subcontracting roles in 2023, including supply activity for Marder deliveries to Ukraine and vehicle components for NATO customers. The company reported year-end backlog at a new high while continuing to expand its vehicle and ammunition businesses.
Full-year 2023 consolidated sales totaled €7,176 million compared to €6,410 million in 2022. Backlog on December 31, 2023 reached €38.3 billion, a new high at that time.
Market perception turned increasingly positive as Rheinmetall became a prominent supplier to European rearmament efforts, viewed as a direct beneficiary of urgent military demand tied to the security situation in Europe.
2022 — Post-shock demand pickup; backlog begins sharp expansion
Demand from NATO countries and German rearmament announcements accelerated order intake across Rheinmetall's divisions. The company's backlog began a material multi-year expansion that showed up in 2022 and 2023 reporting, laying the foundation for subsequent years.
Investors shifted perception from cyclical automotive and defence hybrid toward a defence growth story as large framework agreements and government procurement commitments accumulated. Confidence in multi-year revenue visibility increased.
2021 — Early signs of higher defence demand; company still mixed automotive and defence
Rheinmetall's business mix in 2021 still included significant automotive activities while defence orders began to pick up post-2020. This period acted as the starting point for the multi-year backlog accumulation that followed, with early large framework agreements and incremental military orders.
Investors at this stage treated Rheinmetall as a diversified industrial with growing defence exposure. The later acceleration in 2022–2025 transformed that view into a predominantly defence compounder.
Key risks and downside factors
Rheinmetall operates across land systems, munitions, and defence electronics as a major European prime contractor, alongside a substantial automotive power systems business. Competition emerges from global defence primes building integrated land platforms with munitions and sensors, as well as specialist European land-systems groups and defence-electronics vendors. Material risks include contract execution and supply-chain constraints, export controls and geopolitical shifts in regulation, concentration within specific programs, procurement timing variability, and financial strain from scaling operations to fulfill substantial orders.
- Program execution and delivery risk stems from the need to rapidly scale production and manage complex manufacturing ramps for large orders, which can lead to cost overruns or schedule delays.
- Supply-chain and raw-material constraints can disrupt manufacturing and margin through critical component shortages, single-source suppliers, or commodity price movements.
- Export controls and geopolitical risk present material headwinds for order pipelines and delivery schedules. Changes in export licensing regimes, shifts in national procurement priorities, or ceasefire agreements can all constrain revenue visibility and force operational adjustments on relatively short notice [1].
- Rapid growth can create financial strain through negative operating cash flow when companies must fund inventory expansion, working capital increases, and capital expenditures to fulfill surging demand. This pressure on cash generation may eventually test leverage ratios and credit ratings.
Competitive landscape
Rheinmetall operates as a significant European defence and automotive supplier, with core competencies in land systems, munitions, and power systems. The company faces competition across multiple dimensions: integrated global defence primes—BAE, General Dynamics, Lockheed/RTX, and Leonardo—compete for major platform programmes, while specialised European firms like KNDS, HENSOLDT, Saab, and Elbit contest the sensors, ammunition, and subsystems segments. The company confronts several material risks. Execution risk and supply-chain constraints have become acute as order backlogs grow rapidly. Export controls and regulatory frameworks remain unpredictable, and procurement decisions shift with political winds. Defence spending itself concentrates risk: funding depends on government budgets that can contract or reallocate. Long-duration contracts with heavy upfront capex requirements place working-capital pressure on the balance sheet, particularly when cash conversion lags production ramps.
| Company | Ticker |
|---|---|
| General Dynamics Corporation | GD.NYSE |
| Lockheed Martin Corporation | LMT.NYSE |
| Raytheon Technologies Corporation | RTX.NYSE |
| Saab AB | SAAB-B.ST |
Private competitors
- Krauss-Maffei Wegmann (KMWE commercial operations / private ownership elements)
- Anduril Industries (private US defence tech/new autonomy entrant)
- Ghost Robotics (private autonomy/robotics supplier)
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Start Free TrialPerformance Figures of Rheinmetall AG
Relative Performance vs Benchmarks
| Period | Rheinmetall AG | vs DAX | vs S&P 500 (SPY) |
|---|---|---|---|
| 1M | -6.64% | -3.31% | -8.05% |
| 3M | -5.94% | -6.03% | -9.84% |
| 6M | -34.24% | -39.86% | -49.48% |
| 1Y | -48.92% | -52.02% | -66.61% |
| 3Y | +318.34% | +253.26% | +230.26% |
| 5Y | +1071.00% | +1005.66% | +980.76% |
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Start Free TrialHistorical valuation trends
How the company’s key valuation ratios (P/E, P/S, P/B and P/CF) have evolved over time compared to today.
| Period | P/E Ratio | P/S Ratio | P/B Ratio | P/CF Ratio |
|---|---|---|---|---|
| Current | 62.0 | 4.3 | 8.9 | 33.8 |
| 1Y ago | 103.3 | 7.9 | 19.6 | 85.7 |
| 3Y ago | 20.2 | 1.5 | 3.4 | 22.0 |
| 5Y ago | 14.8 | 0.6 | 1.8 | 5.2 |
Frequently Asked Questions
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What are the key metrics for RHM.XETRA?
How has Rheinmetall AG's stock price performed?
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What are the key risks when investing in RHM.XETRA?
- Program execution and delivery risk stems from the need to rapidly scale production and manage complex manufacturing ramps for large orders, which can lead to cost overruns or schedule delays.
- Supply-chain and raw-material constraints can disrupt manufacturing and margin through critical component shortages, single-source suppliers, or commodity price movements.
- Export controls and geopolitical risk present material headwinds for order pipelines and delivery schedules. Changes in export licensing regimes, shifts in national procurement priorities, or ceasefire agreements can all constrain revenue visibility and force operational adjustments on relatively short notice [1].
- Rapid growth can create financial strain through negative operating cash flow when companies must fund inventory expansion, working capital increases, and capital expenditures to fulfill surging demand. This pressure on cash generation may eventually test leverage ratios and credit ratings.
Who are the main competitors of Rheinmetall AG?
- General Dynamics Corporation (GD.NYSE)
- Lockheed Martin Corporation (LMT.NYSE)
- Raytheon Technologies Corporation (RTX.NYSE)
- Saab AB (SAAB-B.ST)
When does Rheinmetall AG report earnings?
Key Metrics
Valuation Metrics
Profitability Metrics
Growth Metrics
Dividend history
Long-term record of paid dividends (amount per share and dividend yield at the time of payment).
| Year | Dividend | Yield at payment | Avg. yield |
|---|---|---|---|
| 2026 | 11.50 EUR | 0.99% | 1.91% |
| 2025 | 8.10 EUR | 0.50% | |
| 2024 | 5.70 EUR | 1.09% | |
| 2023 | 4.30 EUR | 1.63% | |
| 2022 | 3.30 EUR | 1.81% | |
| 2021 | 2.00 EUR | 2.34% | |
| 2020 | 2.40 EUR | 3.44% | |
| 2020 | 2.40 EUR | 3.93% | |
| 2019 | 2.10 EUR | 2.09% | |
| 2018 | 1.70 EUR | 1.45% | |
| 2017 | 1.45 EUR | 1.69% | |
| 2016 | 1.10 EUR | 1.66% | |
| 2015 | 0.30 EUR | 0.61% | |
| 2014 | 0.40 EUR | 0.85% | |
| 2013 | 1.80 EUR | 4.60% |
Earnings history & estimates
Historical earnings performance shows how consistently the company meets or exceeds analyst expectations. Forward estimates provide insight into expected profitability and growth trajectory.
Historical earnings performance
Upcoming earnings report
Analyst estimates for upcoming periods
Key financial figures
Selected income statement, balance sheet and cash flow figures. Annual and quarterly, based on reported IFRS/GAAP financials.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Revenue | 9.94B | 9.75B | 7.18B | 6.41B | 5.66B |
| Operating income (EBIT) | 1.70B | 1.41B | 897.00M | 738.00M | 614.00M |
| Net income | 696.00M | 717.00M | 586.00M | 540.00M | 291.00M |
| Free cash flow | 1.41B | 988.00M | 345.00M | -175.00M | 419.00M |
| Total assets | 17.08B | 14.34B | 11.94B | 8.09B | 7.73B |
| Equity | 5.01B | 4.05B | 3.32B | 2.81B | 2.42B |
| Net debt | -368.00M | 1.24B | 1.06B | 427.00M | -118.00M |
PWP Leeway UG (haftungsbeschränkt)
