Düsseldorf, May 5, 2026, 13:15 CEST
Rheinmetall shares climbed 2.4% by 0800 GMT on Tuesday, according to Reuters, shrugging off a first-quarter revenue miss as the group stuck with its 2026 outlook. Late Monday, the German defence company posted preliminary figures falling short of analysts’ estimates, but the market treated it as a matter of timing, not demand.
This year, Rheinmetall can’t afford a sluggish start. The company is still sticking to its forecast: revenue up 40% to 45% in 2026, aiming for an operating margin near 19%. Management has told investors that while some sales are lagging, those should shift into a much stronger second quarter.
Revenue for the first quarter climbed 7.7% to €1.94 billion, coming in below analyst forecasts of €2.3 billion. Operating profit, though, jumped 17% to €224 million. The operating margin moved up to 11.6% from 10.5%—a figure the company said lines up with market expectations.
Traders saw the mood turn sharply partway through the session. Rheinmetall started out lagging before the Xetra bell, but then surged to lead the DAX. By midday, shares were up 3.82% at €1,441.20 on finanzen.net. Hensoldt, Renk, and Thyssenkrupp Marine Systems each posted gains as well.
Rheinmetall expects the second quarter to get a boost as weapons and ammunition shipments pick up, with its Murcia plant in Spain back at full capacity. The company also flagged the delivery of pre-built military trucks to a customer in Germany, adding to the tailwind. But this year’s first-quarter numbers face a tricky comparison against last year, when results were inflated by deliveries that had been pulled forward from Q2.
The bull thesis leans heavily on the backlog here. Order nominations came in at €4.9 billion for the quarter, pushing Rheinmetall’s total backlog—orders not yet recognized as revenue—to roughly €73 billion. That’s a 31% climb from a year ago, factoring in the Naval Systems backlog from NVL.
Goldman Sachs’s Sam Burgess stuck with his “Buy” call and a €2,300 price target, noting that first-quarter sales missed mainly due to timing issues. Still, he suggested this update could clear the air after the recent drop in shares. Burgess expects the full report on May 7 to bolster faith in the company’s second-quarter push and its yearly guidance. Finanzen
JPMorgan’s David H. Perry is sticking with his “Overweight” call and the €2,130 price target, despite Rheinmetall’s quarter landing short of market forecasts. Management, he pointed out, blamed the miss on timing issues, but kept all full-year guidance unchanged. According to Perry, investors have grown tougher on execution now compared to the 2022–2025 period. Finanzen
Jefferies’ Chloe Lemarie is holding onto her “Buy” rating and €2,220 target. While she flagged first-quarter revenue as soft, Lemarie pointed out that Rheinmetall’s outlook for the first half eased her concerns. Finanzen
Defence sector sentiment stayed upbeat. According to MarketScreener via dpa-AFX, shares of Renk and Hensoldt climbed after Rheinmetall’s gains. Bernstein’s Adrien Rabier kept Rheinmetall as his top European industrial defence pick, calling it Germany’s leader.
The pressure’s now on for a second-quarter rebound. Revenue and operating profit both fell short, and free cash flow slipped into the red, Barclays’ Afonso Osorio noted, citing a blast at a Spanish ammo plant, postponed truck shipments, and an unfavorable comp to last year. Operating free cash flow—cash left after operations and investments—can’t be ignored, even if margins themselves aren’t wobbling.
Another update lands soon. Rheinmetall will release its complete first-quarter figures on May 7. Hensoldt, which also operates in German defense electronics, is set to announce its own Q1 results a day earlier, on May 6. The sector draws scrutiny this week.
