Rheinmetall's Artillery Backlog Extends to 2027 as Kiel Lays Third Spy Ship

Rheinmetall lands a low-triple-digit-million-euro 155mm artillery shell order, with deliveries set for 2027 and Q3 book recognition.

Rheinmetall has booked a fresh five-figure order for 155mm artillery shells from an international customer, with the contract value landing in the low triple-digit millions of euros. Production is already underway, deliveries are slated to wrap up in 2027, and the order will be recognized in the books during the third quarter, the Düsseldorf-based defense group said on September 14.

The deal lands on a production base that keeps widening. Rheinmetall opened a new artillery ammunition plant in Unterlüß in August 2025, targeting annual output of roughly 350,000 shells from 2027. Further out, the group is aiming for total 155mm capacity of about 1.5 million rounds a year by 2030. Those investments in dedicated lines are designed to ensure that multi-year, large-volume contracts can be worked off reliably.

Naval Work and Rescue Stations Add to the Pipeline

Beyond artillery, Rheinmetall is collecting orders across other divisions. In mid-August, the Bundeswehr called off 149 additional mobile rescue stations under an existing framework agreement, a package worth more than EUR 500 million, with production set to begin in the first quarter of 2027. Through its Canadian subsidiary, the group also secured a US Navy contract in early September for replacement components for mobile launcher systems, valued in the single-digit millions of euros.

On the naval side, Defense Minister Boris Pistorius said on Monday that the German government is planning to procure a fourth intelligence-gathering vessel of a new class and will put the corresponding budget draft before parliament for approval. Rheinmetall builds these units; the keel for the third ship in the series was laid recently at the Wolgast yard.

UK Test Capacity and Two New Systems

Rheinmetall UK strengthened its testing infrastructure on Thursday by commissioning a new vibration test rig, a move aimed at expanding local capacity for demanding development and qualification work. A day earlier, at the British DVD 2026 trade fair, the company unveiled two new systems — "Timber Wolf" and "Silver Wolf" — extending its so-called "Wolf Pack" family to address shifting operational requirements among modern armed forces.

Those technology pushes come as procurement priorities in Europe appear to be shifting. According to a Reuters report, European militaries are increasingly weighing cheaper missiles and interceptor systems in light of battlefield experience in Ukraine and the Middle East — a trend that could influence purchasing decisions over the medium term.

Analysts Stay Constructive Despite the Drawdown

The demand surge was already visible in the second quarter, when Rheinmetall posted revenue of EUR 3.289 billion and operating profit of EUR 562 million. The total order backlog at that point stood above EUR 80 billion. Third-quarter figures are due on November 5.

Analyst sentiment remains broadly positive even after a bruising stretch for the shares. Goldman Sachs came out with a favorable view on the stock's prospects on September 8. Three days later, BNP Paribas reportedly trimmed its price target while reaffirming an "Outperform" rating.

The stock closed Friday at EUR 1,016.00, a modest 0.1% decline on the day, and sits 13% above its 52-week low. On a year-to-date basis, however, the shares are down 35%, reflecting persistent consolidation pressure across the sector. Chart-wise, the stock is trading 26% below its 200-day moving average as it searches for a durable floor.

Investor Calendar Takes Center Stage

Management turns to direct capital-market engagement in the coming trading week. Rheinmetall will attend the German Corporate Conference hosted by Berenberg and Goldman Sachs on Wednesday, followed a day later by a presentation at Baader Bank AG's Investment Conference. Those appearances offer a platform to lay out the operating roadmap and the order situation for the remainder of the fiscal year — and, investors hope, a catalyst for a stock still hunting for traction.