Rheinmetall Races Into Japan and Long-Range Weapons as Investors Keep Their Distance
21.06.2026 - 07:05:16 | boerse-global.de
Rheinmetall is pushing deeper into Asia and unveiling cutting-edge weaponry, yet its share price tells a far more cautious story. The Düsseldorf-based defence group has outlined a string of bold initiatives — from a planned joint venture in Japan to a 2,000-kilometre range cruise missile — but the stock continues to languish nearly 40% below its 52-week high of €1,995, reached last September.
According to a report by the Nikkei on 19 June 2026, CEO Armin Papperger intends to establish armaments production in Japan through a joint venture with a local partner. The move would mark a significant leap for Rheinmetall, which currently operates in Japan only through automotive components such as electric water pumps. No specific partner or location has been confirmed, but Papperger is expected to travel to Tokyo shortly for talks with industry and government officials. The dual goal is to serve the domestic Japanese market and use the country as an export hub for the wider region.
On the same day, speaking at the Eurosatory defence fair in Paris, Papperger called for global rules governing artificial intelligence in weapons systems, likening the need for regulation to international nuclear arms treaties. He proposed a UN resolution or the creation of an international ethics council, insisting that the final decision to fire a weapon must remain with a human operator. Rheinmetall already produces autonomous systems but has stressed that human control over lethal action is preserved.
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Amid these strategic manoeuvres, the group also showcased new hardware at Eurosatory. The “Ruta Block 3” cruise missile, developed with partner Destinus, can strike targets beyond 2,000 kilometres and can be fired from standard containers — offering high mobility. Separately, the company’s CML system, designed to counter drone swarms, has secured a multi-billion euro framework contract from the German armed forces, with first deliveries slated for 2027.
Rheinmetall has also strengthened its transatlantic ties. A partnership with General Atomics will produce new artillery shells that double or triple the range of existing guns. Meanwhile, a collaboration with specialist firm Vantor aims to build an independent satellite reconnaissance capability for NATO, advancing the group’s space ambitions.
The company completed its transformation into a pure-play defence contractor by selling its civilian automotive division for around €350 million. Yet the stock’s performance remains underwhelming. At €1,200.20, the shares have lost roughly 25% since the turn of the year. Technically, the price sits well below both the 50-day moving average of €1,283 and the 200-day average of €1,585. Berenberg reiterated a buy rating with a €1,750 target on 19 June, implying upside of more than 45%, but the market has yet to show conviction.
Investors will be watching the near-term calendar closely. On 23 June, management is due to present at the Mediobanca CEO Conference, followed by the Baader Bank Partner Summit on 25 June. A sustained break above the 50-day line could signal a shift in sentiment, with the 200-day average then coming into view as the next resistance. For now, the gap between strategic ambition and share price performance remains wide.
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