Rheinmetall AG – Recent Developments in Defense and Market Activity

Company profile Rheinmetall AG is a German industrial conglomerate listed on Xetra. Its core activities span automotive engineering, electronics, defense, and engineering. The company supplies a broad range of components for internal combustion engines, including pumps, pistons, and bearings, and offers after‑market service for engine repair. Its market capitalisation is approximately €84.7 billion, and its price‑earnings ratio stands at 96.36.

1. Unmanned‑Aerial‑Vehicle (UAV) Program

On 29 January 2026, Rheinmetall announced the successful field demonstration of its new LUNA NG UAV. The tests, reported by defence‑network.com and soldat‑und‑technik.de, confirmed that the aircraft met operational requirements for the German armed forces. The LUNA NG is a lightweight, long‑endurance platform that can be deployed for surveillance, reconnaissance, or precision‑strike missions. The successful trial is expected to accelerate the procurement process for future operations and to position Rheinmetall as a key supplier of UAVs in Europe.

2. Export Orders for Armored Vehicles

2.1 Portugal – Boxer 8×8

A recent contract, disclosed by militaeraktuell.at on 28 January, sees the Portuguese Ministry of Defence purchasing Boxer 8×8 infantry fighting vehicles from Rheinmetall. The order is part of a broader effort to modernise Portugal’s rapid‑reaction forces and is expected to involve the delivery of several hundred vehicles over the next years.

2.2 Italy – Leopard 2A7+ Tank

In a separate development reported by abendblatt.de on 28 January, Italy signed a multi‑year contract for the acquisition of Leopard 2A7+ main battle tanks from Rheinmetall. The agreement, described as a “milliardenschweres Abkommen”, could involve more than 1 000 vehicles and is anticipated to generate revenues in excess of €1 billion for the German defence contractor. The deal is part of Italy’s ongoing effort to replace older Leopard 2A4s and to strengthen NATO’s collective defence posture.

2.3 Collaboration with OHB

On 28 January, finanzen.net reported that OHB and Rheinmetall confirmed partnership discussions for a major Bundeswehr project. The cooperation has triggered substantial volatility in the shares of both companies, with OHB’s stock experiencing large price discrepancies across trading venues. The collaboration is expected to involve a “Milliardenprojekt” for the German armed forces, reinforcing Rheinmetall’s position as a prime contractor for large‑scale defence projects.

3. Share Price Dynamics

  • Market behaviour – According to boerse‑express.com and finanzen.net, Rheinmetall’s shares have been trading near the €1 840 level with a gradual upward trend. The company’s stock opened the day at €1 845.50, maintaining the €1 800 resistance level and recording a 0.801 % gain on 28 January.
  • Year‑to‑date performance – As of 27 January, the share price stands at €1 845, reflecting a 15 % gain from the start of 2026. Investors who had entered the position a year earlier would have realised a substantial return, as reported by finanzen.net.
  • Market sentiment – Analyst reports from 4investors.de and sharedeals.de indicate that the market views the company favorably, citing the steady flow of defence contracts and a positive outlook for the UAV segment. The high price‑earnings ratio (96.36) suggests that investors are pricing in continued growth and premium earnings from defence contracts.

4. Summary of Key Implications

  • Strategic diversification – The successful LUNA NG trials broaden Rheinmetall’s portfolio beyond traditional ground‑based systems.
  • Revenue growth – The Portuguese Boxer and Italian Leopard contracts are expected to contribute significantly to next‑year earnings.
  • Investor outlook – The share price has shown resilience and upward momentum, supported by a pipeline of major defence deals and expanding UAV capabilities.

These developments underline Rheinmetall AG’s continued leadership in the European defence market and its capacity to leverage both legacy systems and emerging technologies to secure substantial orders.