Rheinmetall is set to release its second-quarter and first-half 2026 earnings report on Aug. 6. Here’s Morningstar’s take on what to look for in Rheinmetall’s earnings and the outlook for its stock.
Rheinmetall RHM
Analyst: Loredana Muharremi, CFA
- Fair Value Estimate: EUR 2380.00
- Morningstar Rating: ★★★★★
- Economic Moat: Wide
- Morningstar Uncertainty Rating: Medium
Rheinmetall Earnings Release Date
- Thursday, August 6
What to Watch for in Rheinmetall’s Earnings
Rheinmetall’s second-quarter growth is expected to accelerate from the weak first quarter, supported by the delayed truck and ammunition deliveries, higher production volumes and the first full contribution from Naval Systems. We expect margin expansion across the core defense businesses as volumes increase, leading to a 20% beat compared to consensus, based on the latest company announcement, while cash flow should improve as delayed inventory is delivered. The magnitude of the rebound is largely timing; the more important signal is whether the production ramp is progressing without margin dilution or further working-capital pressure.
Vehicle Systems and Weapons and Ammunition remain the main growth drivers, while Air Defense and Digital Systems are expected to continue expanding from a smaller base. Naval Systems will add reported growth, but F126’s cancellation weakens its near-term outlook and shifts the focus to Rheinmetall’s ability to redeploy capacity and build a higher-margin naval integration business. The loss also makes the previous nomination target obsolete, although its direct impact on our long-term forecasts is limited.
Recent developments have reinforced Rheinmetall’s expansion into faster-growing capabilities. The loitering-munition order, planned German missile production with Lockheed Martin, the British Army training contract and progress in naval lasers broaden the opportunity across drones, missiles, digital systems and directed energy. The Power Systems disposal also completes the transition toward a defense-focused portfolio.
