Rheinmetall Seals €8.2bn Italian Tank Deal and Tests U.S. Ammunition Venture as Stock Remains in the Red
20.06.2026 - 06:42:37 | boerse-global.de
The Paris defence trade fair Eurosatory has become a showcase for two very different kinds of momentum at Rheinmetall – one locked in by contract, the other still in the realm of possibility. A binding order from Italy for 132 battle tanks worth €8.2bn sits alongside a freshly signed memorandum of understanding with General Atomics to explore co-production of a new precision artillery round. Yet none of this noise has shaken the stock out of its year-long rut.
Italy’s commitment, channelled through the newly formed LRMV joint venture with Leonardo, calls for deliveries of the KF51 Panther-based main battle tanks by 2038. Analysts estimate the programme could balloon to €50bn when potential export orders are included. The contract provides a fixed revenue floor that bolsters the group’s already bulging backlog.
On the ammunition front, Rheinmetall and General Atomics Electromagnetic Systems have agreed to assess a joint production line for the 155mm precision munition Vektrex. There is no firm order or disclosed value attached to the arrangement. The glide-guided projectile is designed to slot into existing 39- and 52-calibre artillery systems without requiring new launch platforms, and promises two to three times the range of conventional shells while retaining accuracy in GPS-denied environments.
Should investors sell immediately? Or is it worth buying Rheinmetall?
The timing of the Vektrex probe aligns with a segment that is already firing on all cylinders. Rheinmetall’s Weapon and Ammunition division recorded revenue of €601m in the first quarter of 2026, while nominations – committed orders not yet in the backlog – surged to €1.806bn, more than double the year-earlier figure. The segment’s backlog stood at roughly €25.8bn at the end of March, with the group-wide order book swelling to €73bn.
Chief executive Armin Papperger used his Eurosatory platform to push for strict global regulation of artificial intelligence in weapon systems, insisting that Rheinmetall maintains human control as the final decision authority. The company is simultaneously widening its international footprint through three strategic ties: a joint venture with South Korea’s LIG Defence to build a European missile shield, a satellite collaboration with Vantor to bolster reconnaissance capabilities, and plans for an in-country weapons production facility in Japan.
The operational heft, however, has yet to translate into share-price relief. The stock closed the week at €1,203.20 after a 2.6% gain on Friday, but remains down roughly 25% since the start of the year and almost 30% over twelve months. The 200-day moving average lies about 24% above the current quote. Berenberg analyst George McWhirter, who rates the shares a buy with a €1,750 target, sees the sell-off as an entry point. Technically, the immediate resistance is the 50-day average at €1,283.17, with the May low providing downside support.
The next potential catalyst is the NATO summit on 7-8 July, where market participants expect additional large-scale orders to materialise. In the meantime, the Vektrex partnership – which likely won’t yield concrete production agreements or customer contracts before the second half of 2026 – offers strategic direction but no near-term revenue. Rheinmetall is playing a long game across both land and artillery, even as its share price demands patience.
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