Rheinmetall: Conference feedback (with CFO/IR)

Research evidence excerpt

Rheinmetall: Conference feedback (with CFO/IR)

Equity Research

European Aerospace & Defence

22 May 2026

Rheinmetall

Conference feedback (with CFO/IR)

Encouraging message for 2Q remains, strong execution is the

validation factor investors are waiting for. Supporting backlog

growth, capacity investment and multi-year revenue visibility RHMG.DE/RHM GY OVERWEIGHT European Aerospace &

Defenceunderpin RHM's investment case long-term, in our view. NEUTRAL

Price Target EUR 2035.00

Takeaways from our conference below. Price (21-May-26) EUR 1209.40

Potential Upside/Downside +68.3%

Source: Bloomberg, Barclays Research

1. High visibility into 2Q. Management reiterated the 1Q miss was driven by timing effects

rather than structural factors (all reversing in 2Q). Operating leverage should remain strong this

quarter, mostly supported by mix (greater skew from W&A) and scale effects. Backlog growth European Aerospace & Defence

will also accelerate, with management sharing encouraging signals on €20bn order intake in 2Q Afonso Osorio, CFA

(MBT to Italy, Lynx to Romania, F126 to Germany; all intact, SAFE funds help). We categorise the +44 (0)20 3134 7016

message for this quarter as cautiously optimistic, with execution the validation factor investors afonso.osorio@barclays.com

Barclays, UKawait for.

Milene Kerner

2. Near-term contract pipeline the primary catalyst. Key programmes at play include the +33 (0)1 4458 4002

Boxer (first fixed order of ~€12.5bn is expected in 2H alongside a broader framework through milene.kerner@barclays.com

2035), and the F126 (which management guides could be signed in the near term with a BBI, Paris

potential €12.8bn value). We see benefits from SAFE fund-related programmes, Italian vehicles Sambhav Kochar