Business overview

Rheinmetall is the German champion of land-based defense: large-caliber ammunition (120mm, 155mm), armored vehicles (Leopard 2, Puma, Lynx, KF51 Panther), artillery systems, and propellants/explosives via its subsidiary Nitrochemie.

Watch: Dropped -51% following the cancellation of the German F126 naval program (June 2026) – a realized political risk, not merely a technical one. Strong dependence on national political decisions.

Valuation
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Update log

DateNewsImpact
9/3/2026Yahoo Finance
9/1/2026Defense News
8/27/2026Yahoo Finance
8/14/2026Naval News
8/14/2026The War Zone
8/13/2026Yahoo Finance
8/12/2026Naval News
8/7/2026Yahoo Finance
8/7/2026Defense News
8/7/2026
Rating revision: Rating 2 → Rating 3
AI review
The rating is downgraded to 3 due to the materialized political risk involving the cancellation of the F126 frigate program. The subsequent reduction in the 2026 sales outlook underscores a heightened vulnerability to German government procurement decisions, which undermines the previous stability associated with a rating of 2. Investors should exercise caution as the reliance on national defense budget volatility remains a significant structural concern.
8/6/2026Rheinmetall has reduced its sales outlook for 2026 after the German Defence Ministry canceled the F126 frigate program.
8/6/2026Rheinmetall has lowered its 2026 sales forecast following the German government's decision to cancel a frigate program.
8/6/2026Yahoo Finance
8/6/2026Yahoo Finance
8/6/2026Yahoo Finance
8/6/2026Breaking Defense
8/6/2026Defense News
8/6/2026Yahoo Finance
8/6/2026Yahoo Finance
8/5/2026Yahoo Finance
8/3/2026Breaking Defense
8/3/2026The War Zone
8/3/2026Naval News
7/30/2026Naval News
7/29/2026German defense company Rheinmetall reported that its preliminary results for the second quarter significantly exceeded market expectations, driven by strong demand across all business segments.
7/29/2026
Rating revision: Rating 3 → Rating 2
AI review
While the F126 naval program cancellation created significant volatility, the company's financial performance indicates robust operational resilience. The record quarterly profits and doubled core earnings justify an upgrade in rating to reflect superior execution in the current high-demand environment. Moving from a rating of 3 to 2 balances the strong fundamental performance against lingering sensitivity to national political procurement shifts.
7/29/2026Yahoo Finance
7/27/2026Seeking Alpha
7/27/2026TradingView
7/27/2026Bloomberg.com
7/27/2026
Rating revision: Rating 2 → Rating 3
AI review
The imposition of Chinese export controls introduces significant supply chain risks and geopolitical friction for Rheinmetall, which relies on global raw material access. Given the recent historical volatility following the F126 program cancellation, this additional political headwind warrants a more cautious, speculative tier assessment. The company's heavy reliance on government alignment now faces international escalations beyond European borders.
7/27/2026Yahoo Finance
7/23/2026ASDNews
7/23/2026XTB.com
7/23/2026
Rating revision: Rating 3 → Rating 2
AI review
Despite political tensions related to demonstrations, the strategic partnership with Lockheed Martin for the local production of ATACMS missiles in Germany structurally strengthens Rheinmetall's order book and its pivotal role in NATO. This technological and industrial integration reduces exclusive dependence on national German budgets alone, justifying an upward revision of the tier. Political risk remains, but the robustness of the industrial model is confirmed by these major new contracts.
7/22/2026Reuters
7/22/2026Following the cancellation of the frigate project, Rheinmetall is considering abandoning the acquisition of a shipyard.
7/22/2026The Rheinmetall CEO is currently evaluating strategic outlooks for the GNYK shipyard following the withdrawal of TKMS.
7/22/2026Rheinmetall plans to expand its powder production site in Aschau, requiring the recruitment of 600 additional employees.
7/22/2026Rheinmetall is intensifying its powder manufacturing operations while showing caution regarding its overall strategic direction.
7/22/2026Following the withdrawal of TKMS, the CEO of Rheinmetall is examining available options regarding the GNYK shipyard file.
7/20/2026Rheinmetall has secured a new contract worth 100 million euros from the German army (Bundeswehr).
7/20/2026
Price ~985 EUR, drop of -51% from the peak (2008 EUR). 17 buy ratings, 0 sell ratings, average target 1697.85 EUR.
Severe fall but very favorable analyst consensus - handle with caution
7/19/2026
Acquisition of Expal Systems (Spain). $50 billion in new NATO contracts.
Confirms upstream vertical integration in explosives
7/15/2026Rheinmetall
7/13/2026Yahoo Finance
7/9/2026GlobeNewswire
7/9/2026Rheinmetall
7/9/2026GlobeNewswire
7/7/2026Yahoo Finance
7/7/2026Yahoo Finance
7/7/2026Yahoo Finance
6/24/2026Rheinmetall shares fell 15% following the loss of a frigate-related contract, a decline considered exaggerated by Morningstar.
6/24/2026
Germany cancels F126 frigate program (~€12B pipeline). Stock -19% in one session.
Real blow to part of the thesis - actualized political risk
5/12/2026BFM
4/8/2026GlobeNewswire
6/11/2025M1110 40MM DAY/NIGHT PRACTICE CARTRIDGE
7/19/202440MM DAY/NIGHT LOW VELOCITY CARTRIDGE
6/26/2023PHASE 3 AND 4 DEVELOPMENT WITH 7 PROTOTYPE DELIVERABLES OF THE OPTIONALLY MANNED FIGHTING VEHICLE.
9/29/202120MM SEARANGER GUN SYSTEMS (QTY: 12), SPARES, TRAINING, HAT TEST
6/30/2006
2026-05
Inauguration of the 155mm ammunition plant in Unterluess
Announced capacity of 700,000 shells/year by 2027; secures European market share against Nammo and Nexter.