Due disappointing results, german defense: This article explores the topic in depth.
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(BFM Stock Exchange) – The German armaments group falls on the Frankfurt Stock Exchange after having revealed disappointing quarterly results in the second quarter. Consequently, Rheinmetall also suffers from sectoral clearances caused by information concerning truce hopes in Ukraine.
The summer season of listed business results is cruel. Nevertheless, The slightest anicer, the slightest disappointment is severely punished, as we have detailed in a previous article. Nevertheless,
If this massacre is valid for the values of the CAC 40. Similarly, it is also so for the other European actions, such as Novo Nordisk which dropped by 23.4%. In addition, on July 29, after being forced to lower its forecasts for the second time of the year, with the intense competition of the “copies” of anti-obeyity drugs, in the United States. Nevertheless,
Market expectations are even higher when due disappointing results, german defense called Rheinmetall. Nevertheless, star of the German Stock Exchange whose title has been soaring since the start of the year. Therefore,
Unfortunately. for the German manufacturer of tanks, ammunition and other military equipment, this season of results will not be favorable to him. Rheinmetall fell by more than 6%, this Thursday, August 7, around 4:20 pm after missing expectations in the second quarter.
However, the action has taken more than 170% since the start of the year and almost 2,000% over five years.
Sectoral clearances
These clearances on the German group are also part of a more global sectoral movement. The titles of the defense compartment are hard while the Kremlin said that a meeting between Vladimir Putin. Donald Trump was scheduled for the coming days. Which leads to truce hopes. “The big titles on a ceasefire in Ukraine do not help, on the contrary,” confirms an due disappointing results, german defense analyst.
To return to the quarterly copy of the German group, turnover increased by 9% over one year in comparable data, to 2.43 billion euros.
“Sales were affected by the punctual effect of a postponement of 140 million euros in the first quarter. by a temporary disruption of 200 million euros in the ammunition activity due to material damage caused by a fire,” said Oddo BHF.
“The dynamics of orders for the quarter proved to be low. as planned, due to delays related to the government transition, ‘appointments’ (orders and framework agreements) reaching 2.639 billion euros, 3% less than consensus forecasts, which brings the order book to 63.164 billion euros”, continues the design office.
The adjusted operating profit has climbed from 2% to 276 million euros, and the corresponding margin was 11.3% in the second quarter.
The company also disbursed 911 million euros in operational due disappointing results, german defense cash flow. where it generated 170 million euros last year over the same period.
The quarterly service does not meet the expectations of the market. According to consensus cited by ODDO BHF, analysts expected better on income (2.55 billion euros), operating profit (300 million euros) and especially on cash flow (-234 million).
“The biggest surprise in this publication was the available cash flow. which has proven to be more in deficit than expected, at -911 million euros, due to the low level of deposits paid by customers, the increase in stocks, mainly linked to car systems, and the later start of truck deliveries compared to the previous year,” said the study office.
Jefferies tick also on the available cash flow which is according to the financial intermediary. “the main weak point of the publication”.
Due disappointing results, german defense
Confirmed annual forecasts
However, Rheinmetall confirms his prospects for due disappointing results, german defense the current year. For 2025, the German defense group is still counting on growth in its income from 25% to 30% and an operating margin of 15.5% after 15.2% in 2024.
The company also indicated that it expected a clear acceleration of orders in the second half of 2025. with a probable peak in the fourth quarter, thanks to discussions with customers in the process of conversion to firm contracts.
“The forecasts are repeated. although the group continues to underline the potential of increase linked to the new environment of defense expenses, and reiterates the importance given to the fourth quarter of this year, given the important orders expected from Germany,” notes Jefferies.
Sabrina Sadgui – ©2025 BFM Bourse
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