Rheinmetall’s Polish Munitions Push and US Precision Pact Fail to Revive Stock
Published on 06/18/2026 at 20:44 | Redaktion boerse-global.de
Despite unveiling plans for a massive munitions plant in northern Poland and securing a high?tech ammunition partnership with General Atomics, Rheinmetall’s shares remain stuck in a deep consolidation. The stock traded at €1,171.80 on Thursday, a meagre 0.58% gain, leaving it nearly 27% lower since the start of the year and 41% below its 52?week high of €1,995.00.
The new factory, codenamed “Kaszubia”, will produce modular propellant charges for 155mm artillery rounds. Rheinmetall Polska has submitted concrete proposals to the Polish defence ministry, with an initial investment of up to 500 million Polish zloty. Once complete, the site will have an annual capacity of 600,000 modules – enough for more than 100,000 complete shell sets. Talks are ongoing with the government and the state industrial agency, with Warsaw insisting on commercial financing. The project is part of a broader European push to manufacture munitions closer to home and reduce supply?chain vulnerabilities.
On the Eurosatory exhibition floor in Paris, Rheinmetall showcased its collaboration with US firm General Atomics on the “Vektrex” 155mm precision munition. The round is designed to maintain accuracy even when GPS is jammed, offering NATO forces a cheaper alternative to rockets. Separately, the joint venture Destinus Strike Systems is pushing ahead with the “Ruta Block 3” cruise missile, which boasts a range exceeding 2,000 kilometres and is intended for use by all member states.
Should investors sell immediately? Or is it worth buying Rheinmetall?
Another showstopper was the new main battle tank developed with Italian partner Leonardo. Industry insiders expect the price tag to hit €60 million per unit – three times that of established models such as the Leopard 2. Rheinmetall also unveiled a converted shipping container, internally dubbed the “death container”, that can launch up to 18 autonomous FV?014 glide weapons. The Bundeswehr placed an order for the system in April worth roughly €300 million, and the container’s open architecture will accommodate third?party technology in the future.
To sharpen its focus on defence, Rheinmetall sold its struggling automotive parts division to the industrial group AEQUITA for about €350 million in early June. The deal is expected to close in the fourth quarter of 2026, leaving investors with a simpler, pure?play structure.
Analysts remain cautiously optimistic, forecasting earnings per share of €38.09 for 2026 and a dividend of €15.18 – a sharp increase from the previous year. All eyes are on the second?quarter results due on 6 August 2026. Until then, the market is demanding tangible contracts rather than press?release ambitions. Only signed large?scale orders are likely to stem the current downtrend.
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