Rheinmetall Stays the Course on MGCS as Berenberg Trims Its Target
Published on 10/11/2026 at 17:41 | Editorial boerse-global.de
Berlin and Paris have shut down speculation that Germany might walk away from the joint MGCS main battle tank programme, giving Rheinmetall a measure of planning certainty on what ranks among Europe's most consequential long-term land-systems efforts. Defence Minister Boris Pistorius and his French counterpart Catherine Vautrin made the position clear on Friday, confirming the multibillion-euro project will press ahead — potentially in a slimmed-down form.
Reports from Handelsblatt and Reuters on Friday described the German government as firmly rejecting any suggestion of a withdrawal. Alongside KNDS and Thales, the Düsseldorf-based group sits among the programme's core industrial partners. Trimming the technical scope could shorten development timelines without disturbing the participating companies' fundamental involvement.
Factory Floor and Launch Pad
Rheinmetall's expansion push extends well beyond international tank programmes. Early in October the group reached a preliminary agreement with rail technology manufacturer Alstom to take over the storied locomotive plant in Kassel. According to dpa, the two sides are still negotiating final contract terms. The factory employs roughly 750 people, and acquiring it hands Rheinmetall additional assembly space to work through its well-filled order books in vehicle construction.
The company is also deepening its development work on unmanned and networked military vehicles. On Tuesday, Rheinmetall Defence Australia and Breaker announced a partnership to integrate so-called human-machine teaming into armoured vehicles, with an initial demonstration already carried out on the Boxer wheeled armoured vehicle in Australia.
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That collaboration reflects a broader strategy of embedding modern reconnaissance and control technologies deeper into the group's own portfolio — an approach that now reaches past classic land systems. On 1 October, Rheinmetall Italia and Argotec launched a jointly developed satellite aboard a SpaceX Falcon 9 from Vandenberg Space Force Base. The system is designed primarily for satellite-based air-defence surveillance and military situational awareness.
Nordic operations are growing in step. Rheinmetall Nordic AS opened a new site in the Norwegian town of Skoppum on 1 October, spanning 4,579 square metres and built for 127 employees. The facility covers development, production and system integration, among other functions.
Balance Sheet Firepower
To keep its operational room for manoeuvre intact, Rheinmetall moved early on Thursday to double its syndicated credit line from EUR 750 million to EUR 1.5 billion. The new facility fully replaces the previous arrangement and is available for general corporate purposes. The group also restructured its banking syndicate, broadening it with international partners.
The financial flexibility arrives during a demanding stretch for the stock. Shares have shed 40 percent since the start of the year and closed Friday's session at EUR 935.30 — a 52 percent discount to the 52-week high of EUR 1,965.00.
A More Cautious Analyst Chorus
Scepticism about longer-term growth gathered pace as the week closed. Berenberg downgraded the stock from "Buy" to "Hold" on Friday and cut its price target from EUR 1,600 to EUR 1,020. Analyst George McWhirter pointed to uncertainty over the medium-term outlook, noting the company will need further order intake for the period beyond 2030.
Investors will get a read on current operating momentum on 5 November 2026, when Rheinmetall publishes its interim report for the third quarter. Attention is likely to centre on order intake and the order backlog in armoured vehicles.
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