RHEINMETALL : Corporate Contact: Key Takeaways | 2Q26e (due: 6 Aug.)

Research evidence excerpt

RHEINMETALL : Corporate Contact: Key Takeaways | 2Q26e (due: 6 Aug.)

EQUITIES

AEROSPACE & DEFENSE

RHEINMETALL OUTPERFORMPRICE* EUR1,203  TARGET PRICE EUR2,200 (UPSIDE 83%)

RHEINMETALL ADR OUTPERFORMPRICE* USD270.3  TARGET PRICE USD510 (UPSIDE 89%)

FLASH NOTE

Corporate Contact: Key Takeaways | 2Q26e (due: 6 Aug.)

22 JUNE 2026 Securities Research Report Production time: 12:29* (London time)

Research Analyst & Publishing Entities

Sebastian Growe BNP Paribas SA (+49) 69 4272 97323 sebastian.growe@bnpparibas.com

What happened?

Rheinmetall (RHM) is scheduled to report Q2 earnings on 6 August 2026. After our field trip to Eurosatory last week the

call with IR served to recap on the messages during recent investor meetings. There was no change to guidance. While

orders are likely to trail behind the earlier planned Q2 target, execution should come in on the strong side, thus backing

full-year guidance and market expectations into 2027 and beyond. After a ~20% underperformance vs peers YTD, RHM

trades at <15x EV/EBIT ‘27e, in line with peers, turning into a ~20% discount based on ‘28e, too cheap, in our view.

BNPP View:

Demand: RHM had guided to Q2 orders of > EUR20bn with its Q1 release; the min. EUR12bn order for F126 is likely

to slip into July, and the Italian MBT order is delayed after the Meloni govt. opted against support from the EU SAFE

program. Based on announced orders, we model EUR8.0bn in the quarter (cons.: EUR8.75bn).

Execution: At our CEO conference, the CEO had pointed to c. 60% sales growth in Q2 reflecting a q/q catch-up at VS

and WA, mainly. We assume a group contribution margin of ~20% giving adj. EBITA of EUR470m (cons.: EUR470m).

FCF: In the light of decent order intake we model a slight NWC tailwind in the quarter and with estimated capex at