Germany cancelled the multibillion dollar F126 frigate program in June (Damen Group).
BELFAST — Germany’s decision to cancel its planned F126 frigate has forced Rheinmetall to reduce an annual naval business sales forecast by €300 million ($346 million), the company said today.
The acknowledgement came in a semi-annual financial report that said despite the expected high-dollar loss on the program, fiscal year 2026 sales across the company as a whole are expected to reach between €13.7 billion to €14.2 billion. Those figures far exceed the firm’s 2025 annual sales haul, valued at 9.9 billion.
“The security policy situation with significantly increased defence budgets in numerous countries ensures demand in the military business. The promising market situation and the persistently strong order book remain unchanged,” the company said. “However, the business development previously anticipated for the current 2026 fiscal year is being affected by the cancellation of the F126 frigate programme.”
Berlin had planned to buy six F126 frigates, originally contracted to Dutch shipbuilder Damen Schelde Naval Shipbuilding (DSNS). Issues with the project, however, prompted Germany to consider shifting it to German shipbuilder Naval Vessels Lürssen (NVL). Rheinmetall acquired NVL in March, with the potential to take on the F126 program.
