Rheinmetall Issues First Public Bond Since 2010 as Barclays Flags 68% Upside on Record Backlog
21.05.2026 - 14:32:08 | boerse-global.de
Rheinmetall is turning to the public debt markets for the first time in 16 years, signalling the scale of its ambitions. The Düsseldorf-based defence group is in talks with investors about a €500 million senior unsecured bond, according to Bloomberg, while Barclays simultaneously upgraded the stock to "Buy" with a €2,035 target price. The twin moves underscore how determinedly the company is financing an expansion that already rests on a staggering €73 billion order book.
The five-year note would be the group's first regular public bond since 2010, a break from the convertible bonds and Schuldschein loans it has relied on in the interim. UniCredit, Commerzbank, Deutsche Bank and Société Générale are acting as lead arrangers. Moody's is expected to assign a Baa1 rating — solid investment-grade territory. Rheinmetall has yet to comment officially.
That order backlog, which stood at €73 billion at the end of March compared with €56 billion a year earlier, is the engine driving the capital markets push. By 2026 the company is targeting new orders of around €80 billion. Much of that potential hinges on "Arminius", the Bundeswehr's planned purchase of up to 3,000 Boxer armoured vehicles worth roughly €40 billion. Rheinmetall's 64% stake in the ARTEC consortium means it would book about €22 billion of that total. CEO Armin Papperger now expects the contract to close in the second half of the year at the earliest, later than the initial Q1 or Q2 timeline, with two major issues still unresolved.
Should investors sell immediately? Or is it worth buying Rheinmetall?
Barclays lifted its rating to "Buy" from "Equalweight" (the secondary article says "Overweight" but primary says "Buy" — need to reconcile: primary says "Buy", secondary says "Overweight". Barclays uses "Overweight" as Buy. I'll use "Overweight" as it's more precise, but both are upgrades. Primary says "Buy" and "Overweight" is equivalent. I'll state "Overweight" from secondary since more specific. The primary says Barclays "hob" auf Buy — that's upgrade to Buy. Actually both are correct. I'll combine: Barclays upgraded the stock to Overweight (the equivalent of Buy) with a €2,035 target. The bank considers the negative market reaction to a weaker first quarter overdone, especially since Rheinmetall confirmed its full-year guidance and flagged a much stronger second quarter. At its current price of €1,212.80, the target implies a 68% upside.
The first quarter was indeed choppy. Revenue rose to €1,938 million, up 8% year-on-year but well below the €2.3 billion analysts had pencilled in. A production accident at the Murcia plant in Spain and delivery delays on military trucks and ammunition weighed on output. Net profit still climbed to €111 million. For the full year, management sticks with 40–45% revenue growth and an operating margin of around 19%. Barclays expects a 45% earnings increase, nearly two and a half times the sector average of 19%.
The stock has regained some ground, closing at €1,240 on Wednesday for a weekly gain of 8% and pulling away from its year low of €1,118. A relative strength index reading of nearly 88 points to strong short-term momentum. Still, the shares are down almost 40% from their 52-week high of €1,995 and roughly 24% lower on a 12-month view. Investors now want to see operational delivery — particularly on cash flow — as Rheinmetall works through its record backlog. If the recovery holds, the Barclays target could come into sharper focus.
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