Rheinmetall’s new “Naval Systems” division generated revenue of €334 million in the first four months following the takeover at the end of February 2026.
According to the German defence contractor, the order book stood at around €6.3 billion as of mid-year. However, the cancellation of the “F126” frigate programme is weighing on the full-year forecast.
The “Naval Systems” division generated revenue of €334 million in the first four months following the takeover. This includes the “FDB424” fleet support vessels, the “K130” Braunschweig-class corvettes, the “MBV707” naval fuel supply vessels and the Bulgarian “MMPV90” Multi-Purpose Modular Patrol Vessel programme.
Naval Systems is responsible for maritime solutions in the construction of manned and unmanned surface vessels. Since the end of the first quarter of 2026, the division has been reported as a standalone segment in the Group’s financial statements.
Naval vessels for Romania
In the first four months following the acquisition, the segment recorded order intake of €1.004 billion. The largest share came from a contract with the Romanian government for the construction of four naval vessels worth €920 million. According to Rheinmetall, the project is being financed through the European “SAFE” programme. A further €80 million or so was attributable to ship repairs and smaller contracts.
The segment’s order book stood at €6.255 billion at the end of June. Meanwhile, Naval Systems’ operating profit reached €33 million, resulting in an operating profit margin of 9.8 per cent.
Refurbishment of the “Rheinland-Pfalz”
The service business also contributed to turnover: in the repair, refurbishment and maintenance sector, Rheinmetall has generated around €39 million since the end of February. The ongoing refurbishment contract for the frigate “Rheinland-Pfalz” accounted for a significant proportion of this.
According to CEO Armin Papperger, Rheinmetall intends to work through its existing maritime orders whilst simultaneously securing further orders on international markets.
‘F126’ cancellation lowers revenue forecast
The performance of the naval business is being weighed down by the cancellation of the “F126” frigate programme, announced at the end of June. Rheinmetall expects this to have a negative impact on turnover of up to €300 million in the current financial year.
The Düsseldorf-based group has therefore revised its revenue forecast for 2026. Rheinmetall now expects consolidated revenue of between €13.7bn and €14.2bn. The expected organic revenue growth remains unchanged at 28–31 per cent. The operating profit margin is expected to reach around 19 per cent.
Rheinmetall unveils new ‘GMF140’ frigate concept
Rheinmetall recently underlined its international ambitions in naval shipbuilding with the unveiling of the new GMF140 frigate. The 140-metre-long warship, with a displacement of more than 6,000 tonnes, is designed for air defence, ballistic missile defence, anti-submarine warfare and long-range precision strikes, amongst other things. Rheinmetall initially intends to offer the concept as part of a procurement project in North America. The offer is also aimed at other allied navies.
