Rheinmetall: Thoughts ahead of European Leadership Conference

Research evidence excerpt

Rheinmetall: Thoughts ahead of European Leadership Conference

Barclays | Rheinmetall

Key questions for management

Short-term trading

• 2Q26 trading. How confident are you in the mechanical drivers from 1Q to 2Q? Other than

the reversal from Murcia, the timings of the truck deliveries and the comps, is there anything

else to flag that impacts 2Q?

• Backlog growth. What are the key drivers of order intake in 2H, and how confident are you

these will come through in the current environment? With visibility improving and award

activity expected to accelerate, how comfortable are you today on sustaining a >25% growth

profile into 2026, and which programs give you the highest confidence on near-term revenue

flow through?

• FCF conversion. Can you discuss the key moving parts for your FCF this year (2026),

alongside the key timelines for the big programmes? If you sign the contract for the Boxer,

F126, Ukraine package, etc., how incremental would these be to your FCF conversion guide?

• Capacity ramp and bottlenecks. What are the two or three most critical execution

bottlenecks that you are seeing today?

• Capex. As current investments are absorbed, when should we expect capex intensity to

normalise and cash conversion structurally improve?

• German procurement. German budgets remain large but allocations continue to shift across

platforms. How do you see German procurement evolving over the next 12–24 months, and

where is Rheinmetall best positioned to benefit?

FIGURE 4. Germany: Defence budget phasing FIGURE 5. Rheinmetall: current backlog composition

Source: Rheinmetall investor presentation, slide 13. Source: Rheinmetall, Barclays Research.

Business, divisional detail and financials longer term

• Longer-term growth.