Rheinmetall Reaches for the Stars as It Sheds Its Last Civilian Division
11.06.2026 - 11:20:51 | boerse-global.de
Rheinmetall’s presence at the Berlin Air Show this week was less about aircraft and more about a corporate identity in transition. The defence contractor used the event to confirm the sale of its Power Systems division — its final civilian asset — and simultaneously unveil a joint venture that will build a space-based surveillance constellation. The moves complete a multi-year pivot to a pure-play defence specialist, even as the stock market continues to keep its distance.
The Power Systems unit has been sold to Munich-based investment firm Aequita, with the transaction expected to close in the fourth quarter of 2026. The division, which accounted for the group’s last non-military revenue stream, fetched around €350 million. Analysts have called the disposal a logical response to shifting geopolitical demands and the pressure to scale up military capacity quickly. With that deal signed, Rheinmetall’s transformation from a diversified conglomerate into a focused defence champion is all but finished.
At the same time, the company is pushing deeper into the space domain. Through the newly formed Rheinmetall ICEYE Space Solutions — in which it holds a 60% stake — the Düsseldorf group is teaming up with Finnish operator ICEYE and startups such as Reflex Aerospace to create an independent European satellite architecture. The goal is to supply armed forces and allied nations with high-precision surveillance data, delivered via synthetic aperture radar (SAR) that can see through clouds and darkness. Production of satellite components is slated to begin as early as this summer, with a facility in Neuss serving as the hub for the constellation.
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The space venture is just one part of a broader expansion across new theatre domains. The group is also working with Boeing to adapt the MQ-28 Ghost Bat autonomous combat drone for the German military, with procurement expected from 2029. On the ground, Rheinmetall is ramping up production of its Skyranger mobile air-defence system to 400 units per year. And a fresh framework agreement with Australia, worth $72 million, will establish a new munitions production line Down Under. The order backlog now stands at a massive €73 billion, underscoring the scale of the opportunity.
Yet the share price has barely reacted. On Thursday, Rheinmetall stock climbed 1.51% to €1,212.20, and has since edged up further to around €1,228. That still leaves the shares down roughly 23% year-to-date — and nearly 40% below the record high of €1,995 set last September. The relative strength index has moved from 44 to a neutral reading of 47, suggesting the market is in a wait-and-see mood. The stock also remains well below its 200-day moving average of €1,608, a technical level that often signals a longer-term downtrend.
Investors are now looking ahead to the next set of catalysts. In August, Rheinmetall will report second-quarter results, with attention focused on the production ramp-up for ammunition and armoured vehicles. A key milestone will be the planned start of tank production in Ukraine. The full effect of the transformation, particularly the expected margin expansion, is unlikely to materialise until the second half of 2026 — when the Power Systems sale is finalised and the group’s identity as a pure defence player is no longer open to question. Until then, the market appears content to keep its feet on the ground while Rheinmetall reaches for the stars.
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