Mwb: Rheinmetall Needs 'Significant' Order Intake to Fill FY28 Revenue Consensus Gap; Sell Reaffirmed

07:30 AM EDT, 08/19/2026 (MT Newswires) -- Mwb Research on Wednesday noted that the market is "asking too much" from Rheinmetall (RHM.F), which would require a "significant" volume of order intake to fill the 2028 revenue consensus gap. "Rheinmetall's (RHM) backlog leaves little doubt that the European defense spending cycle is accelerating and that RHM profits from it. However, medium-term consensus appears to imply an increasingly demanding backlog conversion profile, leaving limited room for execution delays or programme slippage. Of the EUR 80.5bn reported backlog, EUR 30.2bn of fixed orders are scheduled for conversion within 2.5 years. This fully covers consensus through 2027 but leaves 2028 heavily dependent on orders that have not yet been signed," analysts said, reaffirming the stock's sell rating and 1,050 euro price target. "Including frame backlog, 77% of 2028 consensus sales are not covered by the current order backlog (if we exclude the riskier 'frame backlog' part the gap is 90%). We believe consensus is too optimistic on the speed at which spending translates into Rheinmetall revenues." The research firm added that the recently leaked 2027 list related to Germany's defense procurement further deepens the backlog concerns, as it indicates reduced spending on ammunition, combat vehicles and military vehicles.