Rheinmetall's Factory Floor Is Moving Faster Than Its Order Book
Published on 10/28/2026 at 19:50 | Editorial boerse-global.de
Rheinmetall has spent the past fortnight cutting ribbons rather than signing contracts. A medium-calibre line at Albacete and a gun hall in Telford have both come on stream, expanding the group's industrial footprint in Spain and the United Kingdom. What the company has not announced is a firm order for the Skyranger anti-aircraft tank — and that gap is starting to shape how the market reads the run-up to its capital markets day.
Berlin Looks to Diehl as Skyranger Slips
Handelsblatt reported on 22 October that the Bundeswehr intends to procure 48 GARMR drone-defence systems from Diehl as an interim solution, citing delays to Rheinmetall's Skyranger programme. The planned purchase would therefore land with Diehl rather than Rheinmetall. The report did not disclose a completed order.
UBS Trims Its Target but Keeps the Buy
Two days earlier, UBS cut its price objective on Rheinmetall from EUR 1,600 to EUR 1,360 while reaffirming its Buy rating. Analyst Sven Weier argued that management should set more conservative targets at the capital markets day to avoid a repeat of past disappointments. Rheinmetall has scheduled the event for 26–27 November, with the investor relations page listing 25.11.2026–27.11.2026 at the Blohm+Voss venue. Investors will be listening for medium-term goals and detail on the production ramp-up.
Should investors sell immediately? Or is it worth buying Rheinmetall?
A EUR 3.7 Billion Italian Question Mark
Separately, a Reuters report dated 22 October said the Leonardo-Rheinmetall joint venture had won two Italian army contracts worth a combined EUR 3.7 billion, citing the Italian newspaper MF. The orders cover A2CS fighting vehicles and a new-generation MBT main battle tank — two distinct vehicle programmes. Rheinmetall declined to comment, according to the news agency.
Albacete: Three Million Components a Year
The Spanish site at Albacete began medium-calibre production on 16 October. Rheinmetall put annual capacity at roughly 1.2 million projectiles and about 1.8 million cartridge cases — around three million munitions components in total — on an investment of some EUR 20 million.
Telford's Gun Hall and a Five-Year UK Bill
Roughly a week earlier, the company opened its "UK Gun Hall" in Telford. At full utilisation the plant is designed to turn out up to 245 barrels and more than 50 breech mechanisms a year, supporting as many as 100 highly skilled jobs. Britain's Ministry of Defence confirmed the start of production at the facility, run by Rheinmetall UK, which will supply barrels and breeches for armoured and artillery systems including the RCH 155 and future artillery platforms. The investment forms part of the more than GBP 200 million Rheinmetall has spent in the UK over the past five years.
The Next Hard Number Lands on 5 November
Before any of the strategic messaging in late November, Rheinmetall will publish third-quarter 2026 results on 5 November. That print — not the ribbon-cuttings — is the first chance for investors to test whether the capacity build-out is translating into earnings.
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