Rheinmetall Shares Slip as €60.5 Million Bundeswehr Order Fails to Sustain Momentum
Published on 07/29/2026 at 11:10 | Redaktion boerse-global.de
The euphoria surrounding Rheinmetall’s latest Bundeswehr contract proved short-lived. Just a day after the defence group’s stock jumped on news of a €60.5 million heavy transporter order, the shares reversed course on Wednesday, shedding 2.61 percent to close at €1,061.60.
The pullback came despite a fresh order for 56 Elefant 2 heavy-duty trucks from Rheinmetall MAN Military Vehicles, deliveries of which are scheduled for 2026 and 2027. The deal expands an existing framework agreement that originally covered up to 137 vehicles, with an initial batch of 32 Elefant 2 units already fully delivered by early 2025 under a seven-year contract worth €122 million gross.
Tuesday’s 2.78 percent gain — which also lifted peers HENSOLDT, RENK and TKMS — had briefly masked deeper concerns weighing on the stock. The rally unfolded even as Beijing placed Rheinmetall on an export control list for dual-use goods the previous week, a retaliatory move linked to the latest EU sanctions package against Russia. While markets initially shrugged off the geopolitical headwind, the underlying uncertainty remains.
Should investors sell immediately? Or is it worth buying Rheinmetall?
For Rheinmetall, the Chinese measures create legal ambiguity. Suppliers in China can now suspend agreed deliveries by citing the new regulations, a scenario the company could not have anticipated. Rheinmetall has sought to reassure investors on raw material exposure, noting it has secured better protection for critical inputs such as rare earths than other industrial sectors. China controls an estimated two-thirds of global mining and nearly 90 percent of processing capacity for these materials.
The Elefant 2 contract is the latest in a string of Bundeswehr orders that underscore Rheinmetall’s deepening integration into Germany’s military supply chain. The heavy transporter complements the Mammut protected vehicle, also produced by RMMV, and supports Germany’s role as NATO’s logistics hub. In May, the group secured a multi-billion euro deal for more than 2,000 unprotected transport vehicles — the fourth tranche of a framework covering up to 6,500 units — and a €1.04 billion contract for IdZ-ES soldier system modernisation.
Despite this flurry of activity, the stock remains 47.11 percent below its 52-week high of €2,007.00, reached on October 3, 2025. The recent recovery — which had lifted the share price 9.16 percent over 30 days — now appears fragile, with positive catalysts and geopolitical headwinds alternating on a weekly basis.
The market’s attention is already turning to August 6, when Rheinmetall releases its half-year results. Order intake, revenue trends and operating margin will provide the first hard data since both the Bundeswehr order and the China sanctions emerged, offering investors a clearer picture of whether the defence contractor’s operational momentum can withstand the mounting external pressures.
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