Rheinmetall Pushes into Korean Missiles and Spanish Howitzers, but the Share Price Refuses to Bounce

Rheinmetall shares languish near €1,100 low even as it announces a joint venture with LIG for air defense and eyes a €2.7 billion Spanish howitzer contract with Indra.

Rheinmetall’s share price continues to languish near its 52-week low, even as the Düsseldorf defence group unveils a pair of strategic expansions on two continents. The stock, which closed at €1,147.80 on Tuesday, has shed more than 28% since the start of the year, leaving it perilously close to the May 2026 trough of €1,099.80. The 200-day moving average, calculated at €1,592.36 by one metric and €1,596.16 by another, sits roughly 27–28% above the current price — a stark reminder of the downward momentum that has gripped the shares since last autumn.

At the Eurosatory defence exhibition in Paris, which runs until 19 June, Rheinmetall announced a strategic partnership with South Korea’s LIG Defense & Aerospace. The two companies plan to establish a joint venture — with Rheinmetall holding a majority stake — aimed at developing medium- and long-range air defence systems for European and NATO markets. The deal also covers short-range capabilities, where Rheinmetall will integrate its own existing systems. “This is about layered air defence, drone neutralisation and missile defence, all of which are gaining political traction across Europe,” a company representative said.

The agreement remains a non-binding memorandum of understanding, not a concluded joint venture or a confirmed order. Its strategic value lies in extending Rheinmetall’s pipeline in the air and missile defence segment, rather than in any immediate revenue contribution. The group is presenting a broad portfolio at Eurosatory spanning land, air, cyber and space domains, positioning itself as a system integrator rather than a pure component supplier.

Meanwhile, in southern Europe, Rheinmetall is closing in on a far larger near-term prize. Spanish newspaper Cinco Días reported that the group is in advanced talks with local partner Indra to supply the platform for a new artillery programme worth nearly €2.7 billion. The wheeled component of the modernisation project, awarded to an Indra-led consortium in late 2025, calls for 86 self-propelled howitzers and dozens of support vehicles. Rheinmetall is expected to provide the heavy military truck base, using its HX3 model, for the weapon systems.

The Spanish deal would fit neatly into the existing relationship between the two companies. In March 2026, Rheinmetall and Indra signed their own memorandum of understanding to deepen cooperation on military vehicles, with a joint venture for up to 3,000 military trucks envisioned as a follow-up. A formal order in Spain would boost the already robust order book: Rheinmetall reported a record backlog of €73 billion in the first quarter, of which vehicle systems alone accounted for nearly €26 billion. Management confirmed its full-year guidance of an operating margin around 19%.

But the artillery contract is far from a done deal. General Dynamics’ Spanish subsidiary Santa Bárbara has launched legal challenges against the financing of the programme, according to media reports, and further lawsuits could follow. Until a binding contract is signed, no Spanish millions will flow into Rheinmetall’s accounts, and the legal noise threatens to delay any official announcement.

The technical picture offers no comfort. The relative strength index sits at 39.3, indicating neither oversold nor overheated conditions. The stock remains about 42% below its 52-week high of €1,995.00, reached in September 2025. The LIG partnership strengthens Rheinmetall’s strategic profile, and the Spanish opportunity could add meaningful volume, but neither catalyst has so far broken the downward trend that has defined the share price since last autumn. Investors remain deeply cautious about new defence narratives, and until concrete orders materialise, the market is keeping its distance.