German defence stocks slip after U.S.-Iran talks plan, Rheinmetall's weak forecasts

RENK AG

05/02/2026 08:34

In 3rd bullet and headline, specifies outlook comments come from a pre-close analyst and investor call; in 4th bullet corrects source to Berenberg

** Shares in German defence companies fall; a local trader points to reassuring geopolitical signals as the U.S. and Iran agreed to hold talks in Oman on Friday

** Renk R3NK.DE and Hensoldt HAGG.DE slip around 1.3-2.8% while Rheinmetall RHMG.DE drops close to 6%

** Analysts point to a pre-close call Rheinmetall held with analysts, during which it gave what they see as weak preliminary forecasts for 2026

** Berenberg says Rheinmetall sees FY 2026 revenues of around 13.6 billion euros ($16.05 billion) due to lower-than-expected growth in all defence divisions

** The number is below an LSEG consensus of 2026 sales at 15.7 billion euros

** "The weak FY26 guidance is a surprise and little explanation was offered for this on the call", Berenberg says

** JPMorgan expects Rheinmetall's growth ramp-up to be more challenging than previously thought

($1 = 0.8474 euros)

(Reporting by Emanuele Berro)

((emanuele.berro@thomsonreuters.com))