Rheinmetall's Stock Slips Below €1,000 Even as Kuwait Orders and Unmanned-Systems Push Gain Traction

Rheinmetall shares fell 38% in 2026 and closed below €1,000 for the first time since June, even as the company secured a Kuwait MASS order and a Croatian robotics joint venture. Analysts cite sector-wide pressure from shifting defence budgets and profit concerns.

Rheinmetall is living a tale of two realities. On one side, the defence group has just secured its first order from Kuwait for the MASS naval countermeasure system, adding to a growing pipeline of unmanned-vehicle cooperation. On the other, its shares closed on Friday at €993.00 — below the psychologically important €1,000 mark for the first time since late June — after a weekly decline of 9.48% and a 1.9% drop on the day.

The stock has now lost 38% since the start of 2026 and a staggering 46.25% over the past twelve months. At €993.00, the shares trade roughly 50% below the 52-week high of €1,995.00 hit on 29 September 2025 and sit just 10% above the 52-week low of €902.50 touched on 25 June.

Rheinmetall is not suffering in isolation. German-listed peers Renk and Hensoldt have also come under heavy selling pressure, together wiping roughly €58 billion in market capitalisation from the three companies in recent weeks. Analysts point to a shift in warfare technology and defence budgets toward drones and autonomy, as well as a growing scepticism that swelling order books will translate into commensurate profits. A Jefferies research note is widely cited by market participants as having amplified the sector-wide retreat.

The company's own narrative offers some counterpoints. On 10 July it announced that Kuwait had placed its first order for the Multiple Ammunition Softkill System (MASS), to be installed on eight ships. The contract is valued in the low double-digit millions, with a separate single-digit million order for munitions. Separately, Rheinmetall formed a joint venture with Croatian robotics specialist DOK-ING, aiming to become Europe's leader in defence robotics — a move that aligns with the NATO summit in Ankara, where the alliance emphasised drones and autonomous systems.

Still, the technical picture remains strained. Rheinmetall shares are trading 34.6% below their 200-day moving average of €1,518.21 and 15.05% below the 50-day average of €1,168.88. The relative strength index at 37.2 signals that the stock is approaching oversold territory, but the 30-day annualised volatility of 68.77% shows that nervousness remains high. A decisive break below the recent low of €902.50 could open the door to further downside; a sustained rebound from that level might start to shift sentiment.

The fundamental tension centres on the gap between order inflow and earnings conversion. The cancellation of Germany's F126 frigate programme by the defence ministry is expected to cost Rheinmetall up to €300 million in revenue, a blow to its naval ambitions. While Jefferies analyst Chloe Lemarie reaffirmed a "Buy" rating and a €1,300 price target on 10 July, citing a strong position in defence electronics and a broad pipeline in air defence and precision munitions, MWB Research reacted more cautiously, slashing its target from €1,400 to €1,150.

Investors are now looking ahead to the second-quarter report on 6 August for clarity on the company's adjusted annual targets. Another key catalyst is the planned ATACMS production at the Unterlüß site, which could provide a meaningful boost to the ammunition business. Whether the order backlog — still substantial — can be converted into visible profit growth will determine if Rheinmetall can stabilise above the €1,000 level or whether the selling pressure has further to run.