RNMBF - Rheinmetall AG (RNMBF) Q1 2024 Earnings Call Transcript
2024-05-14 14:55:16 ET
Rheinmetall AG (RNMBF)
Q1 2024 Results Conference Call
May 14, 2024 2:30 AM ET
Company Participants
Dagmar Steinert - CFO
Conference Call Participants
Sven Weier - UBS
Virginia Montorsi - Bank of America
Sebastian Growe - BNP Paribas Exane
Christoph Laskawi - Deutsche Bank
Sash Tusa - Agency Partners
Michael Raab - Kepler
Presentation
Dagmar Steinert
Good morning, everyone, and welcome to Rheinmetall's Q1 '24 Conference Call. Before I start on Page 3, I would kindly remind you of 2 things. First, as we are hosting our virtual AGM later this morning, we have a hard stop at 9:15. I will try to be brief so that I have time to answer your questions in the Q&A.
Second, please be reminded of our legal disclaimer on the second page.
Let us now move to Page 3, please. The first quarter marks an excellent start to the year and was characterized by double-digit top line growth and a solid margin improvement. However, higher working capital and CapEx activities affected our operating free cash flow. As in previous years, I would like to remind you that we are expecting a heavy back-end loaded business. We didn't book business with the military trucks, which we are expecting to be called off in Q2 and in Q3 this year.
Rheinmetall's backlog surpassed the €40 billion mark for the first time.
The main driver for Rheinmetall nominations of nearly €4 billion were orders for Skyranger Air Defense Systems. Another significant contribution came from the service contract for the heavy weapon carrier, which unlike the heavy weapon carrier itself, was already booked in the first quarter. The strong start to the year and the progress that we are currently seeing in our second quarter gives us high confidence to achieve our '24 guidance. Lastly, we successfully closed the small bore piston disposal on April 15, and we were able to sell all remaining Shriram shares in the first quarter. With this, we fully accomplished the exit of the piston business, and overall, it marks an important milestone for the realignment of the Rheinmetall Group....
Rheinmetall AG (RNMBF) Q1 2024 Earnings Call Transcript