Rheinmetall AG (RNMBF) Q1 2025 Earnings Call Highlights: Record Growth in Defense Sales and ...

GuruFocus News

Fri, May 9, 2025, 12:09 AM 3 min read

• Group Revenue: EUR2.305 billion, a 46% increase.

• Defense Sales: EUR1.795 billion, a 33% increase.

• Operating Results (Defense): EUR206 million, a 96% increase.

• Operating Margin (Defense): 11.5%.

• Group Operating Margin: 8.7%.

• Operational Free Cash Flow: EUR266 million.

• CapEx: 6.6% of revenue.

• Order Backlog: EUR62.56 billion, a 56% increase.

• Vehicle Systems Sales: EUR952 million, astir doubled.

• Weapon and Ammunition Sales: EUR599 million, a 66% increase.

• Electronics Solutions Sales Growth: 50% increase.

• Power Systems Sales: EUR505 million, a 7% decline.

• Equity Ratio: 33.6%.

• Net Financial Position: Improved to minus EUR600 million.

• Net Debt-to-EBITDA Ratio: 0.34%.

• Warning! GuruFocus has detected 7 Warning Sign with RNMBF.

Release Date: May 08, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Rheinmetall AG (RNMBF) reported a 46% summation successful radical sales, reaching EUR2.305 billion, with defence income increasing by 33% to EUR1.795 billion.

• The defence segment's operating borderline reached a grounds 11.5%, contributing importantly to the group's wide borderline of 8.7%.

• The institution received 70,000 occupation applications successful Q1, indicating beardown involvement and quality to pull talent.

• Rheinmetall AG (RNMBF) has a robust bid backlog of EUR62.56 billion, with expectations to person framework contracts into fixed contracts, providing semipermanent readying security.

• The institution is expanding its accumulation capabilities, including a associated task with Lockheed Martin to nutrient missiles successful Europe, aiming for a imaginable yearly income measurement of EUR5 billion.

• The civilian concern conception is struggling, with a 7% year-on-year diminution and a debased nett borderline of 1.8%.

• There is simply a hold successful ammunition accumulation owed to a occurrence successful Murcia, perchance impacting Q2 income by EUR200 million.

• The company's CapEx is somewhat supra the mean rate, indicating a request for accrued concern to conscionable aboriginal demands.

• Rheinmetall AG (RNMBF) faces challenges successful converting framework contracts to fixed contracts, which could impact the timing of gross recognition.

• The ambitious maturation targets, including a imaginable EUR55 cardinal bid intake, beryllium heavy connected governmental decisions and the velocity of declaration finalizations, which whitethorn not materialize arsenic rapidly arsenic anticipated.

Q: Mr. Papperger, regarding the caller information guidance of implicit EUR55 billion, is this accordant with the erstwhile guidance of EUR50 cardinal to EUR100 billion? Could the EUR55 cardinal extremity up being higher successful the 2nd half? A: The existent propulsion volition travel adjacent twelvemonth owed to timing. We expect much than EUR55 cardinal for this year, but the bulk volition travel adjacent twelvemonth and the twelvemonth after. The imaginable is EUR300 cardinal to EUR400 cardinal by 2030.