Why is Rheinmetall stock sliding today?

Rheinmetall stock is falling nearly 7.0% during today’s session to trade at €880, after the Düsseldorf-based defense group delivered its second guidance reduction of the year, a move that caught markets off guard despite a strong underlying quarterly performance.

The company now expects 2026 revenue of approximately €13.2 billion, well below its prior forecast range of €13.7–14.2 billion, and has lowered its operating margin target to around 18.5% from roughly 19%, while its cash conversion goal has been effectively abandoned — falling to just above 0% from a prior target of more than 40%.

The guidance cut was triggered by two specific execution setbacks: the Arminius Boxer armored vehicle contract, which Rheinmetall no longer expects to be commissioned in 2026, pushing both revenue and advance payments into next year, and delays in artillery ammunition batch approvals that have similarly deferred deliveries.

Adding pressure, JPMorgan analyst David Perry reduced his price target to €1,150 from €1,350, kept a Neutral rating alongside a Negative Catalyst Watch, and warned investors to brace for roughly a 10% decline — noting this marks the fifth revenue or profit warning from the company in eleven months, with long-term revenue visibility for certain army product lines becoming increasingly uncertain.

Today’s decline stands in stark contrast to the broader German market, with the DAX projected to open near record highs on the back of the Democrats’ decisive U.S. midterm election victory and falling oil prices.

European defense peers had already faced sector-wide selling pressure on Wednesday, as the Democratic congressional sweep raised concerns about the future trajectory of U.S. military spending, but Rheinmetall’s company-specific warning has driven its shares to a new 52-week low of €870 intraday — far below the 52-week high of €1,963.

The combination of a repeated guidance miss, a deteriorating cash flow outlook, a cautious JPMorgan reassessment, and a sector already under political pressure has created a particularly difficult backdrop for Rheinmetall today.

While Q3 results themselves showed impressive year-on-year growth — with operating profit up 62% — investors are increasingly focused on whether the recurring delays reflect a structural execution challenge rather than a series of one-off timing shifts, leaving the stock as a clear underperformer in an otherwise buoyant German equity session.