Rheinmetall Reports Higher-Than-Expected Q2 Profit Amid Strong Revenue Growth
German defense contractor Rheinmetall reported a stronger-than-expected second-quarter operating profit of €562 million, surpassing market forecasts of around €470 million. The company's revenue surged nearly 70% year-over-year to about €3.3 billion due to strong demand for military equipment across all business segments. Rheinmetall noted an order backlog exceeding €80 billion in the quarter after securing new contract awards totaling €11.37 billion, including a significant deal from the German military for loitering munitions. However, it warned that operating free cash flow is expected to be significantly negative due to advance payments being shifted into later periods. The company plans to release detailed half-year results on August 6.
Topics: defense operating_profit revenue_growth