Rheinmetall Expands on Two Fronts: New Shell Order for Ukraine and ATACMS Venture in Germany, Yet Stock Stays Under Pressure
Published on 07/08/2026 at 03:45 | Redaktion boerse-global.de
Rheinmetall is pushing ahead with a dual-track expansion of its munitions and missile capabilities, but the market’s attention remains fixed on a heavy blow from a cancelled naval programme. The Düsseldorf-based defence contractor recently signed a contract to supply 155 mm artillery shells to an unnamed NATO member for use in Ukraine, while simultaneously moving to establish a European production centre for ATACMS rockets alongside Lockheed Martin. Despite the flurry of strategic news, the stock continues to trade far below its 2025 peak.
Artillery order adds to a swelling pipeline
The new order covers 155 mm ER02A1 B/B projectiles and DM72 modular propellant charges, with deliveries scheduled for completion by April 2027. The contract value sits in the medium double-digit millions – a relatively modest sum for a group of Rheinmetall’s size, but strategically important as it reinforces the company’s role as a key supplier to NATO and Ukraine. Production will take place at the Rheinmetall Expal Munitions facility in Spain. Depending on the variant, the shells have a range of around 30 kilometres (boat-tail) or nearly 40 kilometres (base-bleed).
Rheinmetall aims to ramp up annual production of 155 mm artillery ammunition to roughly 1.5 million rounds by 2030. This order is the latest in a succession of contracts that underline the sustained demand as Western nations both replenish their own inventories and support Ukraine’s defensive needs. The company recently announced a third large-scale artillery order within days, with output already under way since the second quarter of 2026 and delivery also targeted for April 2027. For investors, the aggregate trend of call-offs, framework agreements, and capacity expansion matters more than any single deal.
Rocket joint venture targets US capacity gap
In a separate move, Rheinmetall signed a letter of intent with Lockheed Martin to form a joint venture for the production, integration, and distribution of ATACMS missiles in Europe. The chosen site is UnterlĂĽĂź in Lower Saxony, where Rheinmetall already operates a sprawling weapons and munitions plant employing about 4,000 people. A rocket motor factory there is nearing completion, and the new facility would make Germany the first ATACMS production location outside the United States. Production of rocket motors and guided-missile components is not expected to start before 2027.
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The partnership is not new – the two companies signed an initial agreement in 2024, broadened it into a "Centre of Competence" for rockets and guided weapons in April 2025, and held detailed talks on ATACMS and Hellfire for Unterlüß in August. The latest step, announced on the sidelines of the NATO Defence Industrial Forum, remains a non-binding declaration until the joint venture is formally incorporated and receives approval from the US government.
The initiative is driven by a capacity bottleneck: Lockheed Martin has scaled down ATACMS production at its Camden, Arkansas facility in favour of the newer Precision Strike Missile, yet European and Ukrainian demand is estimated at 600 to 800 missiles a year. Lockheed’s maximum annual output is limited to 500 units, leaving a gap that the German site is designed to fill. Rheinmetall CEO Armin Papperger framed the move as a matter of European defence sovereignty: “Together with our friends at Lockheed Martin, we are now building the industrial base in Germany for modern defence systems that are in high demand among European armed forces.”
Stock remains deep in the red despite tactical bounces
The positive news flow has done little to lift the share price out of its prolonged slump. Rheinmetall stock traded around €1,120 on Tuesday, a decline of 43.86% from its 52-week high of €1,995 set in September 2025. Year-to-date, the shares have lost roughly 30%, and over the past twelve months the drop stands at 37.48%. The recent weekly performance offered a reprieve of 11.78%, but the one-month view still shows a loss of 6.85%. The 50-day moving average sits at €1,188.36, meaning the stock is trading about 5.75% below that level.
Volatility remains elevated, with 30-day annualised volatility of 70.27%, and the relative strength index of 48.6 points to a neutral market. A fresh 52-week low of €902.50 was set recently, leaving the current price 24.10% above that trough.
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The main overhang is the German defence ministry’s cancellation of the F126 frigate programme, in which Rheinmetall was a participant. That decision triggered a sharp sell-off and continues to weigh on sentiment. The artillery contracts and the ATACMS venture demonstrate that other business segments are still running at high capacity, but whether these can fully offset the F126 blow remains an open question.
Investors will get a clearer picture when Rheinmetall reports its second-quarter results on 6 August 2026. For the rocket project, the next concrete milestone is the formal incorporation of the joint venture, after which construction in Unterlüß can begin in earnest – with volume production still at least three years away.
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