Rheinmetall’s €1 Billion Bundeswehr Order Fails to Halt a Steep Slide From Its 52-Week High

Rheinmetall wins €1.04B German army order for platoon systems, but shares trade 30% below peak amid record defense spending and a €63.8B backlog.

The German defence contractor Rheinmetall has secured a fresh €1.04 billion order from the Bundeswehr for infantry equipment, yet the stock continues to trade deep in the red, more than 30% below its 52-week peak. The contrast between a record order book and a share price languishing near its yearly low is becoming increasingly stark.

Bundeswehr Orders 237 Platoon Systems for 8,600 Troops

Rheinmetall announced on Monday that the German armed forces had placed a call-off order worth €1.04 billion under a framework agreement signed in February 2025, which has a total potential value of up to €3.1 billion. The order covers 237 platoon systems for roughly 8,600 soldiers, including body armour, uniforms, night-vision goggles and tablets. Deliveries are scheduled to run from November 2027 through December 2029.

The hardware brings significant technical upgrades. A much stronger battery pack reduces the weight soldiers have to carry, while a new helmet-mounted laser warning system sounds an alert when enemy sensors lock onto the wearer. Rheinmetall is acting as the prime contractor, coordinating a network of partner companies on the project.

The budget committee of the German parliament had previously approved the necessary funding. The current call-off largely exhausts that tranche, though smaller supplementary orders remain possible in the future.

Global Defence Spending Hits a Record

The order fits into a broader industry backdrop that continues to swell. According to the Stockholm International Peace Research Institute (SIPRI), global military expenditure reached $2.89 trillion in 2025, marking the 11th consecutive year of growth. Europe posted the sharpest increase, up 14% to $864 billion. For Germany, analysts expect the defence budget to hit around €108 billion in 2026.

Rheinmetall’s defence segment order backlog now stands at roughly €63.8 billion. Management is targeting full-year 2026 revenue of between €14.2 billion and €14.5 billion, with an operating margin of around 19%. Analysts at Jefferies and Bernstein see price targets above €2,000 and forecast earnings per share of more than €38 for the current year. The group is also aiming for total order intake of roughly €80 billion in 2026.

Stock Market Sends a Different Signal

The share price tells a far less cheerful story. Rheinmetall stock lost nearly 9% over the past seven days and closed Monday at €1,358.80, up just 1.31% on the day. That leaves it trading roughly 20% below its 200-day moving average and more than 32% below its 52-week high of €1,995. Since the start of the year, the shares have shed around 15% of their value.

A price-to-earnings ratio above 35 is considered ambitious even for a defence contractor with full order books. The partnership with IBM on autonomous maritime systems provides long-term potential but does little to relieve the short-term selling pressure.

Key Dates on the Horizon

Investors are now looking to May 7, when Rheinmetall publishes its first-quarter 2026 results. Whether management reaffirms its full-year guidance will be crucial in determining whether the current price stabilisation can turn into a genuine recovery. A few days later, the annual general meeting will vote on a proposed dividend of €11.50 per share.