Rheinmetall has locked in yet another international contract for 155mm artillery shells, a deal signed on September 14 that carries a value in the low triple-digit millions of euros. Production and delivery are slated for 2027.
The order reinforces a pattern that has become familiar for the Düsseldorf-based defense group: Western governments are steadily refilling ammunition stocks, committing to procurement agreements that stretch years into the future. For Rheinmetall, each new shell contract adds another layer of visibility to its munitions output, helping to keep capacity utilization elevated well beyond the current cycle.
A Broad-Based Order Book, Not Just Ammunition
The artillery deal is the latest in a string of wins spanning multiple business lines. Earlier in September, Rheinmetall Canada secured a US Navy contract for spare components, with deliveries running through the end of 2028. Weeks before that, on August 17, the company booked an order for 149 mobile rescue stations for the Bundeswehr under an existing framework agreement, carrying a gross volume exceeding EUR 500 million. Production of those medical systems is scheduled to begin in the first quarter of 2027, and when combined with earlier call-offs, the total contingent reaches 165 units.
That mix matters. It shows Rheinmetall’s revenue base is not solely dependent on combat munitions — support and protection systems are contributing meaningful volume of their own.
New Products, New Capacity in the UK
Rheinmetall used the DVD 2026 defense exhibition in Britain on Wednesday to unveil two additions to its “Wolf Pack” family: the Timber Wolf and Silver Wolf. Both are aimed at shifting operational requirements among modern armed forces. A day later, subsidiary Rheinmetall UK brought a new vibration testing facility online, expanding local capacity for demanding development and qualification work on British soil.
Those moves come as European militaries reassess their procurement priorities. According to a Reuters report, armed forces across the continent are increasingly examining lower-cost missiles and interceptor systems, shaped by battlefield experience in Ukraine and the Middle East. Any shift in that direction could eventually redraw spending priorities across Europe.
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Berlin Signals a Fourth Naval Vessel
On the domestic front, Defense Minister Boris Pistorius said Monday that the German government intends to procure a fourth intelligence-gathering ship of a new class, with a budget proposal heading to parliament for approval. Rheinmetall builds these vessels; the keel for the third in the series was recently laid at the company’s Wolgast yard.
Guidance Intact, Valuation Under Pressure
Management’s full-year 2026 targets remain unchanged: group revenue of EUR 13.7 billion to EUR 14.2 billion, with an operating margin of roughly 19%, following a notable profitability improvement already achieved in the second quarter.
The equity market, however, has told a different story. Rheinmetall shares closed Friday at EUR 1,016.00, down 35% over the year. Chart technicians note the stock is trading 26% below its 200-day moving average, still hunting for a durable floor.
Analysts are not backing away. Goldman Sachs reaffirmed its view on September 8 and kept its price target at EUR 2,300. Analyst Sam Burgess argued the stock holds substantial recovery potential even if munitions demand were to slow markedly. BNP Paribas, meanwhile, reportedly trimmed its target on September 11 while maintaining an “Outperform” rating.
Conference Circuit Takes Center Stage
The coming week puts management in direct contact with institutional investors. Rheinmetall attends the Berenberg and Goldman Sachs German Corporate Conference on Wednesday, followed by the Baader Bank Investment Conference on Thursday. Those appearances offer a platform to lay out operational direction and the order situation for the remainder of the year. Third-quarter figures are due November 5.
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