Rheinmetall’s ATACMS Pact With Lockheed Martin Adds Firepower as a €500 Million Powder Plant Rises in Bavaria
Published on 07/25/2026 at 17:22 | Redaktion boerse-global.de
The Düsseldorf-based defense group has clawed its way back above the €1,000 mark, closing Friday at €1,032.60 — a 1.29 percent gain that caps a seven-session rally of 5.34 percent. Yet the stock still carries a 33.49 percent loss since January, a disconnect that underscores how sharply operational momentum and market sentiment have diverged this year.
Ground was broken Thursday on the “Firepower” propellant plant in Aschau am Inn, a €500 million investment that will double annual capacity to 4,200 tonnes by 2028. The facility is designed to produce more than one million propellant charge modules per year, addressing the relentless demand for artillery ammunition from both European armed forces and Ukraine. Just two weeks earlier, Rheinmetall delivered its first low-five-digit batch of 155-mm shells from its Unterlüß plant in Lower Saxony to Kyiv — a sign that existing lines are already running flat out.
Alongside the Bavarian expansion, the company has been stacking up contracts across multiple domains. A memorandum of understanding with Lockheed Martin paves the way for a joint ATACMS missile production line in Germany, with the goal of creating a European manufacturing and distribution hub for the precision-guided weapon. The Bundeswehr has placed a roughly €100 million call-off under the “Digitalisierung Landbasierte Operationen” program covering 5,000 adapter plate sets, 11,000 pin pads and additional integration teams. A consortium of Rheinmetall and MBDA Deutschland has been tapped to build a high-energy laser weapon system for the German Navy, with the contract valued in the mid-triple-digit million-euro range.
Internationally, Rheinmetall secured a nearly €1 billion share of the “Omnia Training” consortium with Raytheon UK to digitize British Army combat training over 15 years. It also signed a letter of intent with Space Norway for maritime space surveillance in the Arctic through the Rheinmetall ICEYE Space Solutions joint venture, and took overall responsibility for the autonomous convoy research project “InterRoC VII” on behalf of the German procurement office. Earlier this month, an unnamed international customer ordered four Skynex air defense systems with carrier vehicles and ammunition worth several hundred million euros.
Should investors sell immediately? Or is it worth buying Rheinmetall?
Not all the news has been positive. The cancellation of the F126 frigate program, disclosed in early July, threatens to knock up to €300 million off 2026 revenue. CEO Armin Papperger has publicly questioned the planned takeover of German Naval Yards Kiel without the F126 workload to support a second shipyard site, according to Handelsblatt. That setback, while dwarfed by the scale of recent orders, is a reminder that even a defense contractor with a full order book is not immune to program risk.
Analysts have taken notice. Bank of America’s Benjamin Heelan slashed his price target on July 20 from €1,770 to €1,300, though he maintained a “Buy” rating. Heelan cited a potential NATO shift away from traditional large platforms toward drones and precision munitions — a technological pivot that could pressure the conventional ammunition and vehicle divisions over time. The stock still trades 7.56 percent below its 50-day moving average of €1,117.09, a gap that suggests caution persists despite the recent bounce.
Insider activity has added another layer of interest. In late June, Georgi Vermögensverwaltungs GmbH, ATP Holding GmbH and supervisory board member Dr. Jutta Roosen-Grillo all reported share purchases.
Rheinmetall at a turning point? This analysis reveals what investors need to know now.
All eyes now turn to August 6, when Rheinmetall is due to publish its second-quarter and first-half results. Analysts expect earnings per share of $1.39 on revenue of roughly $3.57 billion for the quarter. Investors will be listening closely for management’s assessment of the F126 revenue hole and the outlook for the naval division — factors that, alongside the torrent of new business in land systems and ammunition, will determine whether the stock can sustain its recovery or remains a high-volatility play for the brave. The annualized 30-day volatility of 67.40 percent leaves little room for the faint-hearted.
Ad
Rheinmetall Stock: New Analysis - 25 July
Fresh Rheinmetall information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
