Rheinmetall Faces Double Squeeze as Space Ambitions Clash with Tank Budget Woes
13.06.2026 - 18:25:52 | boerse-global.de
For Rheinmetall, the narrative is splitting in two. On one side, the company is pushing deeper into space-based military communications through a new joint venture with OHB, aiming to reshape its revenue mix beyond traditional hardware. On the other, a flagship armoured vehicle programme with France is teetering after budget cuts that threaten to pull the rug from under a cornerstone of European land defence. The stock, meanwhile, has been caught in a prolonged downdraft, closing Friday at €1,196.60 — a 25.28% loss since the start of the year and nearly 40% below its record high.
The most immediate stormcloud is gathering over the Main Ground Combat System (MGCS), the long-touted successor to the Leopard 2 and France’s Leclerc. Chief executive Armin Papperger has openly questioned whether the project can survive in its current form, with Paris reportedly planning to slash its contribution by more than half. In nearly a decade of development, only €25 million has flowed to the participating defence groups. Papperger no longer rules out a French exit. To plug the gap, Rheinmetall and KNDS Deutschland are already pushing a Plan B: the Leopard 3, a bridge tank that could enter service as early as the 2030s and keep the Bundeswehr’s armoured capabilities from falling behind.
Yet even as the ground programme wobbles, the Düsseldorf group is pivoting hard toward orbit. The Bundeskartellamt has cleared a joint venture with OHB, based in Bremen, that will target the SATCOMBw Stufe 4 project — described by industry insiders as the “Starlink of the Bundeswehr”. The plan involves deploying up to 200 satellites in low Earth orbit to link soldiers, drones and vehicles in a single network. A first tranche of 40 satellites is pencilled in for 2029, though the formal order is not expected until around the turn of 2026/2027. For Rheinmetall, this marks a deliberate move to reduce reliance on cyclical hardware contracts and build a steadier stream of high-end service revenue.
Should investors sell immediately? Or is it worth buying Rheinmetall?
The market, however, is pricing none of this optimism. The shares are trading well below the 200-day moving average of €1,603.84 and are just 8.80% above their 52-week low. The 50-day average of €1,322.40 sits as the nearest technical resistance level, but breaking through it will require concrete evidence of near-term profitability — not just long-range vision.
All eyes now turn to Paris, where the Eurosatory defence exhibition kicks off on Monday. Rheinmetall traditionally uses the show to unveil new technology, and this year the agenda is unusually broad: land, air and space must be shown to work together. The depth of integration between the new satellite division and the core portfolio will be under particular scrutiny. If the company can demonstrate that the transformation from pure defence manufacturer to system house is gaining traction, it could arrest the year-long slide. Without tangible proof of profitable growth in the immediate horizon, the stock’s path higher remains blocked.
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Rheinmetall Stock: New Analysis - 13 June
Fresh Rheinmetall information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
