Rheinmetall AG announces divestiture of the civil division Power Systems
The executive board of Rheinmetall AG has approved the sale of all activities belonging to its civil division Power Systems. The transaction is scheduled to be completed in the first quarter of 2026, with the company planning to adjust its outlook for the continuing core business accordingly.
Key points of the announcement
| Item | Detail |
|---|---|
| Decision | Disposal of the civil division Power Systems |
| Target sale period | First quarter 2026 |
| Outlook adjustment | Revised forecast for the ongoing operations |
| Next major event | Oddo BHF Forum – 08 January 2026 |
The decision was communicated through an EQS‑Ad‑hoc release on 17 December 2025, which was subsequently reported by multiple financial news outlets including Börsen‑Zeitung, Wallstreet‑Online, Finanzen Net, and EQS‑News.
Market reaction
At the time of the announcement, Rheinmetall’s share price was 1 528,00 EUR. The stock closed the day with a +2,04 % increase, reaching a level of approximately 1 538 EUR. The rise reflects investor confidence in the company’s strategic focus and its strong order books, which remain “filled to bursting” according to internal assessments.
Strategic rationale
Rheinmetall’s management has emphasized that the divestiture will allow the company to concentrate on its core competencies in automotive components, defense, and engineering. By shedding the civil Power Systems division, the firm aims to streamline operations and enhance profitability in its primary sectors.
Outlook update
Following the sale decision, the board will revise the financial outlook for the continuing business. Although specific figures were not disclosed in the initial release, analysts anticipate that the updated forecast will reflect a tighter focus on the company’s main revenue drivers, potentially improving earnings stability.
Context
The announcement comes amid broader geopolitical developments that have influenced investor sentiment towards defense and industrial conglomerates. Despite uncertainties in the European security environment, Rheinmetall’s management maintains that the company’s expansion and product portfolio continue to support robust growth.
Summary
Rheinmetall AG has set a clear strategic direction by agreeing to sell its civil Power Systems division within the first quarter of 2026. The move is expected to sharpen the company’s focus on its core automotive and defense businesses, with an updated outlook to follow. The market has responded positively, and the upcoming Oddo BHF Forum on 08 January 2026 will provide further insight into the company’s revised plans.
