Q3 2025 Rheinmetall AG Earnings Call Transcript
Key Points
- Rheinmetall AG (RNMBF) reported a 17% growth in Defence sales, reaching EUR2.3 billion.
- The company has a strong backlog of EUR63.8 billion, representing a 23% increase year-over-year.
- Rheinmetall AG (RNMBF) is expanding its production capabilities with new factories and joint ventures, including a significant investment in the UK for large caliber guns.
- The company is actively pursuing innovations and collaborations, such as the joint venture with ICEYE for satellite production.
- Rheinmetall AG (RNMBF) is strategically expanding its European ecosystem, with increased capacities in Spain, South Africa, Australia, and new ventures in Lithuania, Latvia, and Romania.
- Operational free cash flow is negative, with a decrease of EUR286 million on the Defence side.
- Order intake was delayed due to the German election period, impacting nominations by 36%.
- The company's operating margin on total sales is lower at 12.9% compared to the Defence side's 15.7%.
- There are integration costs affecting profitability from recent M&A activities.
- The automotive market remains challenging, with slightly decreasing sales in the Power Systems division.
Good afternoon, everybody, and thank you for joining us for the Q3 results call today. With me on the call is our CFO, Klaus Neumann. Klaus will walk you through the financials.
Before we start, please be reminded of our legal disclaimer on page 2. Now let's move on to page number 3. On page number 3, you see that on the sales side, and I focus very strong on the Defence side. We have a growth rate of 17% on the Defence, up to EUR2.3 billion. The total sales is EUR2.78 billion. The operating results on the Defence side is EUR361 million, a plus of 7% and it's EUR360 million in total of plus 19%.
Operating margin is, on the Defence side, 15.7%. And it's lower on the total sales on operating margin is 12.9%. The people still want to come to Rheinmetall. So we had more than 200,000 applications. Operational free cash flow is going down on the Defence side, minus EUR286 million, total minus EUR168 million. And CapEx is growing because of all the new factories that we build up at the moment to 8.9%.
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