Rheinmetall's Naval Division Adds Customs Fleet to Service Portfolio as Q2 Revenue Jumps to €3.29 Billion

Rheinmetall secured a multi-year framework to service four LNG-powered customs ships, as Q2 revenue rose to €3.29 billion and EPS eased to €2.66.

Rheinmetall has secured a multi-year framework agreement to provide technical support for four modern customs vessels, extending the Düsseldorf-based group's maritime services footprint on home soil. The contract, awarded to the company's Naval Systems division by Germany's General Customs Directorate, covers scheduled maintenance, repairs, emergency response and continuous technical assistance during active operations.

The fleet in question runs on liquefied natural gas and comprises a 67-metre flagship alongside three 55-metre units, among them the Wilhelmshaven-based customs cruiser "Friesland." Routine servicing will be carried out at the vessels' berths in Wilhelmshaven, Lubmin, Neustadt in Holstein and Emden. The three smaller aluminium-hulled ships were built at Rheinmetall's own Peene-Werft facility in Wolgast and handed over to authorities last year. Naval Systems itself emerged in 2026 from the full takeover of Naval Vessels Lürssen. No financial terms of the maintenance deal were disclosed. The ships patrol cross-border goods traffic in German territorial waters and the exclusive economic zone.

Share Price Extends Recovery From Deep Year-to-Date Deficit

Investors greeted the news with modest buying. The stock added 0.4% on Wednesday to change hands at €1,002.00, though earlier in the session it had traded as high as €1,019.60 for a gain of 2.2%. Even after the recent bounce, the equity sits 34% below where it started the year, and the gap to its 52-week high of €2,007.00 stands at exactly 50%.

Chief executive Armin Papperger used a Handelsblatt interview to frame the June setback — triggered by setbacks in frigate programmes and negative cash flow — as a cyclical swing rather than a structural problem. Keeping the German armed forces operational through 2029, he said, remains the company's central mission.

Second-Quarter Top Line Climbs, Earnings Per Share Eases

The quarterly scorecard lends some weight to that argument. Revenue for the second quarter of 2026 reached €3.29 billion, up sharply from €2.43 billion in the same period a year earlier. Earnings per share, however, slipped to €2.66 from €2.90. Market participants will get a fuller picture of the current financial year in late autumn, with interim third-quarter figures scheduled for release on 5 November.

Munitions Demand and Unmanned Systems Fill the Order Book

Beyond the naval segment, Rheinmetall continues to build out its unmanned systems business. While Stark Defence readies the first combat drones for delivery to the Bundeswehr, Rheinmetall has locked in billion-euro contracts for military drone technology alongside industry player Helsing. On the naval side, the group showcased networked unmanned systems designed to protect ports and critical infrastructure during NATO exercise REPMUS26 — a containerised solution intended as a flexibly deployable asset for the German Navy.

Vehicle co-operation is expanding internationally as well. In the UK, Rheinmetall and Mercedes-Benz UK unveiled light tactical vehicles for the British Army and invested in a vibration testing rig at its Telford site for development of the Challenger 3 main battle tank. Artillery production remains busy: on 14 September the company booked a major order for a low five-digit quantity of 155mm shells from an international customer, a contract worth a low three-digit million-euro amount that will be recognised in the third quarter of 2026, with deliveries set for 2027.

State Aid for Capacitor Production

Investment in advanced base technologies is proceeding in parallel. Rheinmetall subsidiary Pierburg Pump Technology, based in the Saxon town of Hartha, received a funding commitment of roughly €1.5 million on Tuesday for production processes involving high-performance capacitors. Total investment in the NanoLam manufacturing line comes to more than €4.4 million.

Management Takes the Road to Munich

With news flow running hot, executives are seeking direct contact with institutional investors. Rheinmetall is attending the joint Berenberg and Goldman Sachs conference in Munich on Wednesday, followed by the Baader Bank investor conference at the same location on Thursday. Management is expected to use both appearances to explain how rising ammunition demand and fresh service contracts should contribute to medium-term stabilisation.