German defense giant Rheinmetall cuts outlook for second time in months as military contracts stall

German defense giant Rheinmetall cut its full-year guidance late Wednesday, citing delays to military contracts and ammunition deliveries.It marks the company's second outlook cut since August, when Germany scrapped plans to build warships in what would have been Rheinmetall's biggest order since World War II. The defense company now expects sales to rise to around 13.2 billion euros ($14.9 billion) in 2026, down from a prior outlook range of between 13.7 billion and 14.2 billion euros. It is expected to have an operating margin of around 18.5%, down from the previously expected 19%.Rheinmetall said it's revising its 2026 guidance due to delays in the German military's Arminius Boxer project, now expected to be commissioned next year, and setbacks in artillery ammunition acceptance testing. Shares are down roughly 35% year-to-date, following an average annual gain of 114% over the prior four years as it became one of the main beneficiaries of ramped-up military spending by European governments amid Russia's full-scale invasion of Ukraine in 2022. Stock Chart IconStock chart iconRheinmetall shares over the past five years.RBC analysts called the announcement "clearly negative," citi...