By Cristina Gallardo


Rheinmetall held back from raising its full-year guidance despite higher sales and profit in the second quarter, after the change of government in Germany led to order intake delays.

The German arms maker on Thursday reported sales of 2.43 billion euros ($2.83 billion) in the three months through June, up 8.8% on the second quarter of last year, but below a consensus estimate compiled by Visible Alpha of 2.52 billion euros.

Net profit for the second quarter more than doubled to 159 million euros, while operating profit--more closely watched by analysts and investors--rose to 276 million euros from 270 million euros. The operating margin stood at 11.3%, below the 12.1% posted for the same quarter last year.

Germany's largest defense company, which continues to bag a steady stream of orders for ammunition and weaponry from governments seeking to support war-torn Ukraine, said its order intake for the second quarter stood at 2.43 billion euros, below market expectations, reaching 14 billion euros for the first half of the year.

Chief Executive Armin Papperger said this was due to the change of German government and the delay in passing the country's federal budget, which hurt order intake.

The company's backlog reached a new all-time high of 63 billion euros as of June 30.

The arms maker said it continues to expect sales growth of between 25% and 30% this year, and an operating margin of around 15.5%.


Write to Cristina Gallardo at cristina.gallardo@wsj.com


(END) Dow Jones Newswires

08-07-25 0240ET