Rheinmetall's Week of Contrasts: Record Orders, a Frigate Refit, and a Stock Still 43% Off Its Peak
Published on 08/01/2026 at 20:51 | Redaktion boerse-global.de
The Düsseldorf-based defence group closed out the week with a 10.74% gain, its strongest showing in the DAX in recent memory. Yet the rally tells only half the story. While Rheinmetall's order pipeline keeps swelling — from autonomous supply vehicles for the US Army to artillery systems for the British military — the share price remains deep in the red compared with its October 2025 high.
At Friday's close, the stock settled at €1,145.00, a marginal 0.09% dip on the day that did little to dent the week's momentum. Two developments over the preceding 48 hours provided the fuel: confirmation of talks over a potential Iveco acquisition, and official word on a German Navy modernisation contract.
Leonardo Confirms Iveco Defence Vehicles Talks
The Italian defence major Leonardo used Friday's analyst call to address the speculation head-on. Chief Financial Officer Giuseppe Aurelio described the discussions as a "gentlemen's agreement," with both parties exploring the sale of Iveco Defence Vehicles' (IDV) truck and logistics business to Rheinmetall.
For the Germans, this would represent far more than a bolt-on acquisition. Rheinmetall and Leonardo already co-own the joint venture Leonardo Rheinmetall Military Vehicles (LRMV), which focuses on heavy tracked platforms such as the Panther main battle tank. IDV would bring complementary wheeled-vehicle expertise, potentially cementing Rheinmetall's position in European military logistics.
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Leonardo CEO Lorenzo Mariani sought to temper expectations, framing the divestment as one option among several. But the deep integration between the two groups on major joint programmes has left the market betting on a swift conclusion.
Frigate "Bayern" Modernisation Confirmed
Thursday evening brought the second piece of news. Rheinmetall officially confirmed a contract to upgrade the F123 frigate "Bayern" for the German Navy. The agreement, signed at the end of the second quarter of 2026, carries a value in the mid-hundreds of millions of euros.
Work will run until 2029 at the group's Neue Jadewerft shipyard in Wilhelmshaven, with the goal of keeping the 1996-commissioned vessel operational until at least 2035. The scope covers several critical areas:
- Renewal of the command and weapons engagement system (FüWES)
- A comprehensive radar sensor upgrade
- Retrofit of modern anti-submarine warfare systems
- Overhaul of the propulsion plant
The contract carries particular strategic weight for Rheinmetall. It reinforces the group's credentials as a systems integrator, a role that came under scrutiny in June when the F126 programme was cancelled.
US and UK Contracts Add International Depth
The week's news flow extended well beyond Europe's borders. American Rheinmetall has secured an 18-month US Army contract for the development of autonomous, hybrid-powered ground vehicles under the "Project Sustainment" programme. Run through the National Advanced Mobility Consortium, the project positions American Rheinmetall as prime contractor, delivering unmanned vehicles designed to handle company-level resupply and logistics in forward areas.
The systems will be directed via voice command using "Anura" technology from partner Primordial Labs, with Harbinger and Forterra also involved in the consortium. Jim Schirmer of American Rheinmetall highlighted the deliberate expansion of the US portfolio, and follow-on option orders are already built into the arrangement.
Across the Atlantic, Rheinmetall is also deepening its UK footprint. The company is supplying weapon systems for 72 British RCH 155 wheeled howitzers. Ordered in May and booked in the second quarter, the contract is valued in the low hundreds of millions of euros. Production will take place at a new gun manufacturing facility in Telford. The RCH 155 pairs a Boxer drive module with the weapon system of the Panzerhaubitze 2000, offering the unusual capability of firing while on the move. The system is produced through the ARTEC joint venture, in which Rheinmetall partners with KNDS.
Rheinmetall at a turning point? This analysis reveals what investors need to know now.
The Numbers That Temper the Optimism
For all the contract wins, the market's arithmetic remains unforgiving. The stock still sits 42.95% below its 52-week high of October 3, 2025, and the year-to-date performance remains firmly negative. The recent recovery, while welcome, has barely scratched the surface of the multi-month decline.
Chart watchers see some room for further upside. The shares have pushed back above the 50-day moving average at €1,107.87, and the relative strength index of 62.4 suggests the stock is not yet overbought. That leaves technical headroom should the upcoming results deliver.
What Investors Are Watching Next
All eyes now turn to Thursday, August 6, 2026, when Rheinmetall publishes its full half-year report. Preliminary figures have already shown second-quarter revenue growth of 69% to approximately €3.29 billion. The market will be looking for detail on operating cash flow and divisional margin trends.
The order book, now worth more than €80 billion, provides the underlying narrative of growth. The question is whether the profitability of that backlog will justify the next leg higher — with resistance levels around €1,234 in view — or whether the stock's recent turbulence proves more persistent than the headlines suggest.
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