Rheinmetall reports record 80 billion euro backlog amid rising defense demand

German defense contractor Rheinmetall reported significant growth in the second quarter of 2026, with revenue rising nearly 70% to 3.29 billion euros. Operating profit more than doubled to 562 million euros, driven by increased demand for military equipment such as tanks, armored vehicles, and ammunition, largely linked to the conflict in Ukraine and heightened European defense spending.

The company's order backlog reached a record 80.47 billion euros, fueled by 11.37 billion euros in new orders during the second quarter alone. This includes artillery packages for NATO partners like Romania and loitering munitions.

Despite these gains, Rheinmetall lowered its full-year 2026 revenue forecast to a range of 13.7–14.2 billion euros from a previous estimate of 14–14.5 billion euros. This adjustment follows the German government's decision to cancel the 15.2 billion euro F126 destroyer project in favor of the MEKO A-200 project by TKMS. CEO Armin Papperger noted that while demand remains strong, the company is managing a negative operating cash flow due to strategic inventory building to ensure delivery guarantees.