Rheinmetall’s €60.5 Million Truck Order Masks a Deeper Recovery Debate
Published on 07/27/2026 at 20:32 | Redaktion boerse-global.de
The Bundeswehr has placed another order with Rheinmetall, this time for 56 heavy-duty trucks worth roughly €60.5 million gross. The Elefant 2 vehicles, built on the HX81 platform and powered by a 680-horsepower engine, will be delivered through the company’s MAN Military Vehicles subsidiary in 2026 and 2027. The deal extends a framework contract signed in 2018, which originally covered up to 137 vehicles with a total value of €122 million. After an initial order of 32 units, the contract is now being expanded as demand rises.
The Elefant 2, capable of towing up to 135 tonnes and reaching 89 kilometres per hour, is designed to complement the existing Mammut armoured vehicle in service. Industry sources say the transporter will strengthen logistical links within the NATO alliance.
A Steady Climb, But Still Far From the Summit
Shares in Rheinmetall rose 2.38 percent on Monday to €1,057.20, extending a recovery that has seen the stock gain 12.22 percent over the past 30 days. The broader market also lent a hand: the DAX climbed to its highest level in roughly three weeks, buoyed by a US-Iran ceasefire and falling oil prices.
Yet the numbers tell a more sobering story. The stock remains 47.32 percent below its 52-week high of €2,007.00, reached in early October last year. Since the start of 2024, Rheinmetall has lost 31.90 percent of its value. The recent rally, while welcome, is more of a technical bounce than a decisive breakout from a prolonged downtrend.
Should investors sell immediately? Or is it worth buying Rheinmetall?
Beijing’s Shadow and a Powder Plant Bet
Two other developments are weighing on investor sentiment. China has placed Rheinmetall on an export control list, a retaliatory move against EU sanctions on Chinese and Hong Kong entities. The measure could complicate the company’s access to certain components and supply chains, though the market has so far shrugged off the news.
On the flip side, Rheinmetall is pushing ahead with a €500 million investment in a new powder factory in Bavaria, targeting an annual capacity of 20,000 tonnes by 2030. The move signals a long-term commitment to ramping up ammunition production, even as geopolitical headwinds persist.
The company is also competing for a potential Bundeswehr drone contract, alongside Helsing and Airbus, with a joint proposal from Rheinmetall and Boeing Australia. The military is seeking aircraft capable of autonomous ground attacks, though a decision has yet to be made.
Analyst Optimism Meets Market Caution
Despite the stock’s recent struggles, the analyst consensus remains firmly in the “buy” camp, with an average price target of €1,697.85 — implying upside of 63.63 percent from current levels. The new Elefant 2 order, while modest in the context of Rheinmetall’s overall revenue, should support that view.
Rheinmetall at a turning point? This analysis reveals what investors need to know now.
The broader European defence sector has been more cautious. Deutsche Bank upgraded a French defence stock to “buy” on Monday, citing a general downtrend in European defence equities and doubts about their valuation premiums relative to US peers. The note did not include a specific assessment of Rheinmetall.
For now, investors are left weighing a mix of short-term recovery, structural growth investments, and persistent geopolitical uncertainty — a combination that has kept the stock’s volatility elevated and its direction anything but certain.
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