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Rheinmetall has hosted an impressive CMD outlining strong mid-term prospects. It has increased its mid-term sales target by ~20% and the EBIT margin target by 200bps, largely supported by strengthening operating leverage in defence. The company is open to selling its Civil businesses (now regrouped under the Power Systems segment) if it receives a fair offer. The CMD confirmed our positive view on the company, now beyond 2026 also.
Companies: Rheinmetall AG
AlphaValue
Rheinmetall published strong 9M results largely driven by the VS and W&A divisions. Q3 sales rose by 24.2% yoy and the operating result by 59.2%. The performance in civil businesses finally recovered after H1 being severely impacted by cyberattacks. The orderbook reached an all-time high of €36.4bn and the management has re-iterated the FY23 guidance on the back of the good business development.
Rheinmetall published H1 results in line with the consensus. Q2 sales rose by 6% yoy and the operating result was flat with the performance driven by the military business, partially offset by weaker civilian business which was impacted by higher input costs and additional business recovery costs following the cyber-attack (~€10m) on civil IT systems in April. The orderbook reached an all-time high level of €30bn and the management has re-iterated the FY23 guidance on the back of good business d
Rheinmetall published weaker than expected Q1 results. Sales were 5% above consensus, but operating income dropped by 20% to €73m, missing the consensus by 10% due to a lower contribution from the Chinese JV and other associates, as well as due to staff payments to compensate for inflation. Operating earnings excluding these at-equity results improved by 12.6%. The company re-iterated its FY23 despite a weak Q1 because profitability is expected to be back-end loaded (>2/3rds of the operating res
Rheinmetall has delivered a strong set of FY22 results, in line with the consensus. The company also published a very conservative guidance for FY23. After the conference call it seemed clear that this guidance is just a safety net to ensure that the company does not miss the management’s targets and we thus expect multiple positive revisions over the course of the year. Following this release we will upgrade our estimates, resulting in a positive revision to the target price.
Rheinmetall has hosted an impressive CMD with strong long-term prospects. It has now finally disposed of its Piston unit and can focus on its core Defense activities and some niche EV applications. NATO budgets are still ramping up and ammunition has become a scarce commodity in the current war. Rheinmetall has decided to grow externally to accelerate the ramp up of production, which should enable it to benefit fully from the strong current momentum.
Rheinmetall delivered results spot on guidance. The sales and operating results were bang in line with the consensus, which comes as positive news given the push-back on German military orders and the Australian jumbo contract. The guidance was reiterated, suggesting that the Q4 will be massive as last-minute orders will empty the high inventories.
Rheinmetall has posted results globally in line with expectations. It has already warned that its FY22 sales guidance would be at the lower end of the range, as Auto is facing larger than expected headwinds. The real negative news comes from the postoned German €35bn contracts, which pushes forward the expected order intake and associated sales. Losing the bid in Slovakia and Czech Republic did not help the current order intake.
Rheinmetall has published robust results, though globally anticipated by the market. The strong growth in Weapon & Ammuniton has resulted in a better product mix and higher margins. The order backlog of its Defence activities have increased healthily, as governments are progressively increasing their spending. Rheinmetall is still waiting for a firm order by the Bundeswehr to invest in extra capacity and start its promised revenue expansion. It has given more visibility on sales heading into FY2
Rheinmetall finished the end of the year strongly. The financial figures were heading in the right direction even before the conflict started as announcements on increasing military budgets had been made. The outlook has never been brighter for the German defence company, and we believe the short-term results will be boosted by a strong performance in Weapon & Ammunition and its high/fast capacity increase potential.
We had previously discussed that, through its exposure to Eastern European countries and its strong Defence portfolio, Rheinmetall was well set to perform extraordinarily well. The recent news of the German government doubling its defence budget should accelerate Rheinmetall’s growth and confirms the positive momentum of the stock.
Rheinmetall published an encouraging set of results, with slightly disappointing sales but better-than-expected margins. Semiconductor and other raw material shortages impacted Rheinmetall this quarter, a situation which is expected to last through at least Q4. The Piston business continues to await disposal.
Rheinmetall published a record H1 reported EBIT thanks to cost savings that were implemented in FY20 that are now paying off. The Vehicle Systems division announced a record level of backlog at €10.5bn, boosted by significant contracts in Q2. Guidance has been confirmed for FY21, but still no news on Pistons.
Rheinmetall published results above expectations in sales and margins, confirming a good start to the year. The disposal of its Piston unit will give fresh impetus to its operating margins in the mid-term. Uncertainties could arise from the German elections and the semiconductor shortage, which it is starting to notice in its Automotive sector.
Rheinmetall held an investor update call on Thursday, 4 February, on which it provided preliminary information regarding its FY20 earning as well as the key strategic objectives towards 2025.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Rheinmetall AG. We currently have 1 research reports from 3 professional analysts.
Strix has reported FY23 results to 31 December 2023 with adjusted PAT of £20.1m, in line with our updated forecast and company guidance provided in January. Revenue grew 35.2% to £144.6m, benefitting from the full year inclusion of the Billi acquisition, albeit slightly below our forecast of £151.0m. Its core Kettle Controls division also performed robustly, growing 2.7%, ahead of the broader market and indicating market share gain. Recent acquisitions have noticeably improved the Group’s growth
Companies: Strix Group PLC
Zeus Capital
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Liberum
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Cavendish
Cohort announces that its subsidiary SEA (Systems Engineering and Assessment Ltd.) has been awarded a major contract by the UK’s Ministry of Defence to provide Electronic Warfare Counter Measures (Increment 1a) (EWCM 1a) to the Royal Navy with a total value of at least £135m. This includes provision and support of SEA’s Trainable Decoy Launcher System, Ancilia. At the FY 24 interim results Cohort had commented on an overall “increased tempo” of order intake. The Group reported a closing order b
Companies: Cohort plc
Equity Development
The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
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Hardman & Co
Positives emerged, particularly in H2, as the recovery commenced within the kettle controls market. Billi was the architect of the revenue improvement, with LAICA also delivering a double-digit increase in the top line. Margins improved, notwithstanding a change in the mix. Encouragingly, investor concerns on debt were allayed with the careful management of cash, and latterly as bankers raised the net debt/EBITDA covenant to 2.75x. With further emphasis on costs and cash conservation and a lik
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Quadrise continues to advance towards commercial revenues for its innovative fuel and biofuel technologies, with each of its projects approaching key milestones in 2024. Preparatory steps for the MSC Shipmanagement (MSC) fuel trials are now complete and fuel supply agreements are nearing finalisation. Quadrise will achieve its first licensing revenues on the successful completion of Valkor’s project financing (timing uncertain). Quadrise also successfully concluded its Morocco trial, paving the
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Edison
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Judges Scientific is a group involved in the buy and build of scientific instrumentation businesses. Testament to the strength of its highly engineered offer and global diversified customer base, total revenue increased an impressive 20.2% to £136.1m (organic +15%), with adj. PBT +7.5% to £31.7m (FY2022: £28.3m), 3.1% ahead of our estimate of £30.5m. Fully diluted (FD) adjusted EPS increased a more muted 2.6% (impacted by anticipated tax headwinds) to 368.5p (basic adj EPS 374.5p), 3.4% ahead of
Companies: Judges Scientific plc
WHIreland
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Canaccord Genuity
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Gelion has reported in line H1 FY24 results that demonstrate continued strong cash management and steady progress in its pursuit of next generation lithium-sulphur battery technologies. Encouraging early test results justify last year’s IP acquisitions and validate Gelion’s Li-S battery technology plan, with additional progress expected to be reported in H2 alongside its pursuit of a strategic partner for its planned Advanced Commercial Prototyping Centre (ACPC) facility in Australia. There is a
Companies: Gelion PLC
Forterra’s FY23 (to 31 December) earnings were slightly higher than guidance, which was raised in January, with resilient pricing partly offsetting a steep fall in demand among its main end users, large housebuilders. Our estimates are broadly unchanged, other than reflecting a more conservative stance on the final dividend. Despite a cautious tone in the outlook statement, we believe the largest housebuilders may now rebound more strongly than smaller peers.
Companies: Forterra Plc
Progressive Equity Research
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