Rhine Metal's stock price tumbles 17%; the German defense giant cuts its outlook for the second time this year

German defense group Rheinmetall (Rheinmetall) saw its stock price fall by nearly 17% on Thursday, following the company's second reduction of its 2026 performance forecast since August.

The company currently expects sales to be around 13.2 billion euros, which is lower than the previous forecast range of 13.7 to 14.2 billion euros; the operating profit margin is expected to be around 18.5%, compared to the previous 19%.

Rheinmetall attributes this reduction to delays in the orders for “Boxer” ( Boxer ) armored vehicles under the German Army’s “ Arminius ” project, with these orders now expected to be finalized next year. In addition, there have been setbacks in the acceptance testing of artillery ammunition as well.

The company stated that the advance payment will be deferred until 2027, which will impede its cash conversion targets. At the same time, the revenue generated from its collaboration with the Dutch company Destinus has also been postponed.

Royal Bank of Canada Capital Markets ( RBC ) stated that this update is “clearly negative” and indicated that it may exacerbate market concerns regarding traditional defense manufacturers.

However, Rheinmetall's sales in the third quarter still increased by 32%, reaching 3.15 billion euros.

Since the beginning of this year, the stock has fallen by approximately 46%.