Rheinmetall shares drop as 2026 profit, cash flow forecast falls short

Space, naval divisions in focus

The company expects its order backlog to more than double to 135 billion euros ($157.07 billion) this year from 2025's record of 63.8 billion euros.

Papperger, who sees mergers and acquisitions as key to meeting demand, said the German Naval Yards Kiel (GNYK) shipyard could be an option as the company expands into the naval sector.

Rheinmetall is also in talks with Airbus about a joint venture that should be signed soon with Germany's OHB for a military satellite system, he said.

Rheinmetall plans to propose a dividend of 11.50 euros, up from 8.10 euros.

(Reporting by Miranda Murray and Matthias Inverardi, Editing by Linda Pasquini, Louise Heavens and Alexander Smith)