Rheinmetall AG shares fall 14–15 % after cancellation of the F126 frigate programme

Rheinmetall AG (RHM) experienced a sharp decline in its share price on 24 June 2026 following the German government’s decision to terminate the €12.8 billion F126 frigate project. The share price fell by roughly 14 % by 10:45 UTC, leaving the stock trading near €1,100—close to its 52‑week low of €1,099.20 set on 12 May 2026.

Background of the cancellation

  • The F126 programme involved the construction of six frigates for the German Navy.
  • The German Defence Ministry announced that the project would be shelved and the navy would instead order eight smaller Meko A‑200 frigates.
  • The cancellation was publicly confirmed by the German government on the morning of 24 June 2026.

Market reaction

  • The DAX index was in the negative territory throughout the morning; the index’s value at 12:30 UTC was approximately 24 670 points.
  • Several other defence‑related shares, including TKMS and Renk, also fell. TKMS shares gained about 10 % as investors shifted to the smaller‑sized frigate supplier.
  • Renk shares dropped around 5 % as the market’s sentiment against Rheinmetall spread to other companies with defensive ties.

Investor impact

  • CEO Armin Papperger’s equity stake in Rheinmetall was heavily diluted by the share price decline.
  • Shareholders experienced a 15 % loss in the value of their holdings on the day of the announcement.

Other developments

  • The cancellation of the F126 programme has attracted scrutiny from competitors.
  • Panzerbau company KNDS announced plans to go public, signalling increased competition in the European defence market.

Summary

The termination of the F126 frigate programme has caused a significant sell‑off in Rheinmetall AG’s stock, dragging the company’s market value close to its recent low. The event has also influenced broader market sentiment, affecting other defence and industrial conglomerates listed in the DAX.