The German federal government has cancelled the multi-billion euro F-126 frigate program. Following this decision, Düsseldorf-based defense company Rheinmetall lowered its revenue forecast for 2026.
In a presentation for analysts, Rheinmetall admitted that no short-term replacement for the F-126 program is in sight.
The company now expects its group revenue to increase to between 13.7 billion and 14.2 billion euros in 2026. This is a reduction from the previous revenue forecast of between 14 billion and 14.5 billion euros.
80 billion euro
Rheinmetall's order backlog reached this threshold.
Recent financial performance
Despite the lowered forecast, Rheinmetall reported an increase in revenues of 69 percent to nearly 3.3 billion euros during the months of April to June. During the same period, the company's operating profit improved by almost one-fifth to 562 million euros.
Marine division developments
Rheinmetall's new marine division recorded total incoming orders of approximately one billion euros in the first half of the year. This division has secured orders from Romania.
Updates
The German government has decided to select a smaller variant from competitor TKMS instead of the F-126 program, which was halted due to delays and cost explosions. Consequently, the upper and lower ends of Rheinmetall's new revenue forecast range have each been reduced by 300 million euros compared to the previous guidance. Additionally, the company reported that its second-quarter revenue rose 69 percent to 3.29 billion euros, while its operating result more than doubled to 562 million euros.
The German government has decided to opt for a smaller variant from competitor TKMS instead of the F-126 program, which was halted due to cost increases and delays. Consequently, both the upper and lower ends of Rheinmetall's new revenue forecast range have been reduced by 300 million euros each compared to the previous forecast. Additionally, the company reported that its second-quarter revenue rose 69 percent to 3.29 billion euros, while its operating result more than doubled to 562 million euros.
The German government has opted for a smaller variant from competitor TKMS following the cancellation of the F-126 project. Consequently, the upper and lower bounds of Rheinmetall's updated revenue forecast have both been reduced by 300 million euros compared to the previous projections. Additionally, the company reported that second-quarter revenue rose 69 percent to 3.29 billion euros, while operating results more than doubled to 562 million euros.
The German government opted for a smaller variant from competitor TKMS following the cancellation of the F-126 project caused by cost explosions and delays. Consequently, the upper and lower ends of Rheinmetall's new revenue forecast range have each been lowered by 300 million euros compared to the previous guidance. Additionally, the company reported that its second-quarter revenue rose by 69 percent to 3.29 billion euros, while operating profit more than doubled to 562 million euros.
Rheinmetall revised its 2026 revenue forecast, lowering both the upper and lower bounds by €300 million each, following the German government’s cancellation of the F-126 frigate program and its decision to procure a smaller variant from TKMS; despite the setback, the company reported a 69% year-over-year revenue surge to €3.29 billion in Q2, an operating profit of €562 million, and expects a 19% operating margin, while securing job guarantees for its Neuss plant workers through IG Metall.
