Rheinmetall's Naval Service Push and Munitions Momentum Offset a Bruising Year for the Stock

Rheinmetall Naval Systems will maintain four German customs vessels under a multi-year framework agreement, adding recurring service revenue to an €80.5 billion backlog.

Rheinmetall has locked in another stream of recurring revenue, with Germany's federal customs administration tapping the Düsseldorf-based defense group to keep its newest vessels seaworthy over the long haul. The multi-year framework agreement, awarded to subsidiary Rheinmetall Naval Systems by the Generalzolldirektion, covers scheduled upkeep as well as repairs and emergency support at the fleet's four permanent berths.

The contract spans the ports of Lubmin, Neustadt in Holstein, Wilhelmshaven and Emden, and takes in one 67-meter vessel plus three 55-meter units. Built from aluminium, the ships were handed over by the Peene-Werft yard in Wolgast during 2025. Rheinmetall Naval Systems — formerly NVL, acquired from Lürssen in March — will now provide end-to-end technical cover. CEO Tim Wagner framed the mandate as a full-lifecycle commitment to the fleet. No financial value for the framework agreement was disclosed.

For the group's maritime arm, the deal reinforces a deliberate pivot toward maintenance and service work for government clients, a strategy that trades the lumpiness of newbuild programs for steadier, repeat income.

An Order Book Approaching €81 Billion

That service win slots into a backlog that has swollen dramatically. Rheinmetall's order book stood at €80.5 billion at the end of June 2026, up from €56.0 billion a year earlier and just €18.4 billion back in 2022. Firm orders account for €56.3 billion of the current total, with a further €24.1 billion held in framework agreements.

Ammunition remains the engine room. Revenue in the Weapon & Ammunition division climbed 33 percent to €1.76 billion in the first half of 2026. On September 14, the company also booked an order for several tens of thousands of 155-millimeter artillery shells, valued in the low hundreds of millions of euros. Management is targeting annual output of 1.5 million rounds of that caliber by around 2030.

Full-year 2026 revenue guidance sits at €13.7 billion to €14.2 billion — a range trimmed by €300 million after the F126 frigate program was scrapped.

Drone Trials, a NanoLam Grant and a Simulator Win

Beyond the naval contract, Rheinmetall kept up a brisk pace of announcements across its portfolio. On Monday, it put networked unmanned systems through their paces during the REPMUS26 exercise, testing technologies designed to guard harbors and critical maritime infrastructure. The appetite for such automated surveillance gear reflects European states' heightened security demands.

On the industrial side, subsidiary Pierburg Pump Technology secured a grant of roughly €1.5 million on Tuesday to support production of NanoLam capacitors, a project carrying total investment of more than €4.4 million. The artillery order announced on September 14 came from an international customer, with delivery scheduled for 2027.

Shares Firm but Still Deep in the Red

Investors greeted the run of operational news with modest buying. The stock added 2.7 percent on Wednesday to close at €1,021.80. Even so, the shares have shed 34 percent since the start of the year and sit 49 percent below their 52-week high of €2,007.00 — a gap that hints at how much skepticism still shadows the sector despite the brimming order book.