Rheinmetall Doubles Its Credit Backstop to EUR 1.5 Billion as UBS Trims Price Target
Published on 10/25/2026 at 15:01 | Editorial boerse-global.de
Rheinmetall has quietly strengthened its balance sheet while expanding its industrial footprint, renewing a syndicated credit facility ahead of schedule and doubling it from EUR 750 million to EUR 1.5 billion roughly two weeks ago. The move gives Europe's largest defence contractor more financial headroom as it ramps up production across the continent.
The financing news came as UBS cut its price target on the stock on Tuesday, lowering it from EUR 1,600 to EUR 1,360 while keeping a "Buy" rating. Analyst Sven Weier attributed the reduction to his expectation that Rheinmetall will set conservative targets at its capital markets day to avoid disappointing investors. The more cautious valuation does not signal a change in the broker's fundamentally positive stance on the shares.
Munitions Capacity Expands in Spain
On the operational side, Rheinmetall's Expal Munitions unit brought a new medium-calibre production line online at its Albacete site in Spain about a week ago. The company puts annual capacity at roughly 1.2 million projectiles and some 1.8 million cartridge cases — or around three million munitions components per year in total. The expansion carries an investment of about EUR 20 million, and the workforce is set to grow from around 210 to roughly 300 employees.
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In Britain, Rheinmetall has resumed independent production of large-calibre weapons at the newly opened "UK Gun Hall" in Telford. At full utilisation the facility is designed to turn out up to 245 barrels and more than 50 breechblocks annually. Breechblock and breechblock production began in May 2026, with barrel manufacturing following in June 2026, and the site is expected to support up to 100 jobs.
Italian Army Orders Reported but Unconfirmed
Rheinmetall's joint venture with Leonardo, Leonardo Rheinmetall Military Vehicles, is reportedly in line for Italian army contracts. Reuters, citing the Italian newspaper MF, reported two orders for A2CS combat vehicles and main battle tanks worth a combined EUR 3.7 billion. Rheinmetall and Leonardo each hold a 50% stake in the venture. Rheinmetall declined to comment on the report, and Leonardo did not confirm signing; the orders remain unconfirmed by the companies involved.
Shipyard Deal Nears Completion
Rheinmetall and Swiss shipping group MSC jointly won the auction for Romania's Mangalia shipyard, with a combined purchase price of around EUR 138 million and closing expected within a few weeks. The site is intended to host both civilian and military shipbuilding, and Rheinmetall's Naval Systems unit will take part in building four Romanian navy vessels.
Investors will get their next look at the company's numbers on 5 November, when Rheinmetall is scheduled to publish its third-quarter 2026 report, according to its investor relations calendar.
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