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EsRheinmetall Q2 Profit Beats Estimates As Revenue Jumps Nearly 70%
Rheinmetall posted Q2 operating profit of €562 million, ahead of about €470 million expected, as revenue climbed nearly 70% year over year to roughly €3.3 billion.
German defence contractor Rheinmetall reported stronger-than-expected second-quarter results on Wednesday, posting operating profit of €562 million ($640 million) and revenue of about €3.3 billion, up nearly 70% from a year earlier. This earnings surprise illustrates why fundamental analysis focuses on the gap between reported results and market consensus.
The company linked the sales surge to heightened demand for military equipment across all business segments during the quarter.
Despite the profit and revenue gains, operating free cash flow for the quarter is projected to be significantly negative, reflecting the shift of some advance payments into later periods.
Order backlog exceeded €80 billion after Rheinmetall booked €11.37 billion in new awards and programs, including a contract from the German military for loitering munitions.
On July 2, the company indicated it expected revenue growth of more than 60% for the quarter. Detailed half-year results are scheduled for August 6.
