Rheinmetall's Shipyard Win and Factory Openings Meet a Trimmed UBS Price Target

UBS lowered its price target on Rheinmetall from EUR 1,600 to EUR 1,360 on Tuesday while keeping its "Buy" rating on the stock. Analyst Sven Weier tied the cut to his expectation that the defence group will set conservative goals at its capital markets day in order to avoid disappointing investors.

The adjustment came as Rheinmetall pushed ahead on several industrial fronts, from a Romanian shipyard auction to fresh small-calibre output in Spain and large-calibre gun production in the UK.

Mangalia award secured, closing still pending

Rheinmetall and MSC have won an auction for the joint takeover of Romania's Mangalia shipyard, according to the companies. The purchase price to be paid jointly by the two partners comes to around EUR 138 million, a figure that applies to the combined bid rather than to Rheinmetall alone. Rheinmetall said it expects to complete the transaction a few weeks after the award, meaning the bid has been accepted but the deal has not yet closed.

The yard is intended to combine civil and military shipbuilding work. For Rheinmetall's Naval Systems unit, it is slated to take part in the construction of four naval vessels ordered by Romania.

Albacete ammunition line ramps up

On the munitions side, Rheinmetall Expal Munitions brought a new medium-calibre production facility in Albacete into service just over a week ago. Rheinmetall puts its annual capacity at roughly 1.2 million projectiles and about 1.8 million cartridge cases. The expansion carries investment of around EUR 20 million, and headcount is set to rise from about 210 to roughly 300 employees.

Telford gun hall restores UK barrel output

In Telford, Rheinmetall has opened the "UK Gun Hall," resuming independent production of large-calibre weapons in Britain. The site will manufacture weapon systems in the 120 mm and 155 mm calibres. At full utilisation, it is designed to turn out up to 245 barrels a year along with more than 50 breeches. Breech and breech-block production began in May 2026, with barrel manufacturing following in June 2026. Rheinmetall plans up to 100 jobs at the facility.

Italian army contracts reported, not confirmed

Among the operational headlines are reported Italian army orders for the Leonardo Rheinmetall Military Vehicles joint venture. According to Reuters, which cited a report by Italian financial service MF, Leonardo and Rheinmetall are set to receive two contracts through the venture worth a combined EUR 3.7 billion. No company confirmation accompanies the figure. The reported contracts cover A2CS combat vehicles and next-generation main battle tanks for the Italian army.

Rheinmetall's next confirmed reporting date is 5 November 2026, when it will publish its third-quarter 2026 report.