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Rheinmetall to Sell Civilian Business, Focus on Defense
18 Dec
Summary
- Rheinmetall plans to sell its civilian divisions for defense focus.
- Negotiations with two bidders aim for a contract by Q1 2026.
- Divestment will adjust revenue forecasts for continuing operations.
German industrial group Rheinmetall announced its intention to divest its civilian business segments, signaling a concentrated strategic move towards specializing in the defense sector. The company has entered into negotiations with two prospective buyers, aiming to finalize an agreement within the first quarter of 2026.
The divisions slated for sale primarily encompass automotive supplies and components for the energy industry. Rheinmetall's Power Systems division and associated units will be accounted for separately, reported as discontinued operations. This significant restructuring has prompted the company to revise its financial forecasts.
Consequently, Rheinmetall now anticipates revenue from its continuing operations to expand by 30% to 35% this year, building upon a comparable revenue of €7.7 billion ($9 billion) from the previous year. The company also projects an operating profit margin between 18.5% and 19%, an increase from the 18% achieved last year.
