Rheinmetall sees sales growth of up to 45% in 2026, says it's in 'prime position' to arm the U.S. amid war in Iran

In this article RHM-DE R3NK-DE BA.-GB LDO-IT Follow your favorite stocks CREATE FREE ACCOUNT German Rheinmetall MAN tactical military transport vehicles parked in the Edvard Peperko military barracks. Luka Dakskobler | Lightrocket | Getty Images German arms maker Rheinmetall said it sees this year's sales growing by as much as 45% as it reported 2025 revenue growing 29% year-over-year, missing expectations. It also said it was in a "prime position to help the US replenish their missile stockpiles" used in the war in Iran, such as supplying critical solid rocket motors. In a presentation to accompany earnings on Wednesday, the company said "higher spend for missile restocking and air defence" was "inevitable." It comes as defense companies are expected to be on the receiving end of governments' hiked spending on military capabilities, amid increased demand due to the wars in Ukraine and Iran. Rheinmetall expects its order backlog to more than double to 135 billion euros this year. "The tense security situation underpins the promising position of the Group, whose products are playing an increasingly important role for the increase in defence capabilities in Germany and its partner countries," Rheinmetall said. The defense giant, Germany's seventh-largest company by market value, issued its 2026 outlook, which it had hinted at during a preclose call in early February. Group sales are expected to grow by between 40% and 45% to between 14 billion ($16.26 billion) and 14.5 billion euros. Operating result margin is expected to be around 19%, up from 18.5% in 2025. Jefferies analysts called the guidance "realistic but soft." "The world is changing rapidly, and Rheinmetall is well prepared," said CEO Armin Papperger in a statement. "With our products, we will have a significant share in the increasing equipment spend of the armed forces and deliver what modern armed forces need in the 21st century." Shares fell 5.2% in early trading on Wednesday while the pan-European Stoxx ...