Rheinmetall cuts outlook over Boxer project delay

German defence group Rheinmetall cut its earnings outlook Wednesday for the second time in several months, citing expected delays in a major military vehicle project.

The Duesseldorf-based company now expects revenue this year of about 13.2 billion euros ($14.8 billion), down from a previous forecast range of 13.7 billion to 14.2 billion euros.

Rheinmetall blamed the “likely delayed commissioning of the Arminius project,” saying the related order intake was no longer expected in 2026. The project involves the German military procurement of a large number of Boxer armoured fighting vehicles.

Boxers are made by a consortium owned by Rheinmetall and Franco-German defence group KNDS. Rheinmetall also said there had been some disappointments in its weapons and ammunition division.

Despite the lower outlook, the company said it met its third-quarter targets. Revenue rose 32% to 3.15 billion euros, from 2.3 billion euros a year earlier, while operating profit increased by more than 60% to about 550 million euros.

Rheinmetall has benefited from European rearmament since Russia's invasion of Ukraine, but it suffered a setback in June when the German government cancelled an order for next-generation frigates. Rheinmetall said at the time that it expected to lose about 300 million euros because of the cancellation.