Rheinmetall Snags Bundeswehr Recovery Vehicle Contract as State Readies Stake in Rival KNDS
23.06.2026 - 11:06:20 | boerse-global.de
Berlin is reshaping the European defence landscape on two fronts. While the German government prepares to take a 40% stake in KNDS, the maker of Leopard and Boxer tanks, it has simultaneously placed a major order with Rheinmetall for 23 BĂĽffel armoured recovery vehicles. The mid-three-digit million euro deal underscores a complex relationship in which the state becomes both customer and shareholder of a direct competitor.
Delivery of the new Bergepanzer 3 units is scheduled to begin at the end of next year, with all vehicles handed over by summer 2029. The order replenishes Bundeswehr stocks depleted by transfers to Ukraine and locks in long-term revenue for the Düsseldorf-based group. Rheinmetall’s role as a key supplier to the military remains intact even as the government gains oversight of a rival’s technology and production capacity.
Insiders are betting on the company’s prospects. On 22 June, ATP Holding GmbH, a vehicle closely tied to CEO Armin Papperger, purchased Rheinmetall shares worth around €4 million at an entry price of €1,161.46 per share. That purchase came the same day Oddo BHF upgraded the stock to “Outperform,” setting a price target of €1,670. Analyst Yan Derocles described Rheinmetall as “growth at a discount,” noting the shares trade at a more than 20% discount to the European defence sector average. He argued the market is overpricing concerns over order slowdowns and diplomatic risks linked to the Iran conflict.
Should investors sell immediately? Or is it worth buying Rheinmetall?
The company is also looking beyond Europe. According to Nikkei, Rheinmetall is exploring a joint venture to set up defence production in Japan, a move that would significantly expand its global footprint. That expansion drive comes as the broader German economy faces headwinds: the BDI has cut its 2026 growth forecast to just 0.4%, and the DAX index remains under pressure.
On the trading floor, the stock initially jumped 2% on news of the Bundeswehr order, hitting €1,203.20. It has since settled back to €1,184.20, a 0.51% gain on the latest session. Even so, the shares are down approximately 26% year to date and sit nearly 25% below their 200-day moving average of €1,577, far from the all-time high near €2,000. The combination of steady military demand, state intervention at a competitor, and insider confidence leaves Rheinmetall caught between structural tailwinds and immediate market scepticism.
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