Rheinmetall Q1 Sales Rise 8 Percent as Naval Systems Division Launches

German manufacturer Rheinmetall reported first-quarter 2026 sales of €1.9 billion, equivalent to $2.2 billion, marking an 8 percent increase from the same period a year earlier. The company also provided its first breakdown of results from its naval systems division after completing the acquisition of shipbuilder Naval Vessels Luerssen at the end of February.

The naval systems unit generated €77 million in sales for March, primarily from new-build surface ship programs. Germany's fleet service vessel program and the Bulgarian Multi-Purpose Modular Patrol Vessel contributed significantly to that total, the company said.

Rheinmetall's naval systems division holds an order backlog of €5.5 billion. The company plans to develop and produce state-of-the-art navy and coastguard vessels as well as maritime autonomous surface systems following the acquisition, though the purchase price was not disclosed.

Air defense sales rose 43 percent to €192 million. Digital systems revenue increased 16 percent to €349 million. Tracked and wheeled vehicles generated €985 million, a 3 percent rise from the prior year. The company's order books remain at record levels.

Rheinmetall predicted significant growth acceleration in the second quarter driven by large-volume naval and automotive-based orders. Full-year sales guidance stayed unchanged at between €14 billion and €14.5 billion, compared with €9.9 billion in 2025.

Gigafactory produced 79,478 Model 3 and Model Y vehicles in April. The output represented a 36 percent increase from April of the previous year. The vehicles were destined for both the Chinese market and export. The company also filed a new Roadster trademark during the month.

A senior manager at Shanghai consultancy Suolei described monthly output above 70,000 units as impressive while noting potential challenges from new models by Chinese competitors.