Rheinmetall AG
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5-year stock timeline
Rheinmetall: From Industrial Supplier to European Defence Powerhouse
2021: Repositioning Begins
In February 2021, the company reorganised its structure, dissolving the formal split between Automotive and Defence divisions. Management announced plans to actively manage the portfolio and exit legacy piston and combustion activities, signalling a strategic pivot. Interim results showed modest sales growth alongside improved guidance for revenue and margins. Investors began recognising the early contours of a defence-oriented future, though the market still largely viewed it as an industrial and automotive supplier. The stock moved sideways to modestly higher through the year, establishing a pre-geopolitical base.
February–March 2022: Ukraine Catalyst
Russia's invasion of Ukraine on 24 February 2022 triggered an immediate German and NATO rearmament cycle. The share price jumped 5.4% the following day and breached €200 for the first time on 28 March as orders and bookings accelerated sharply. The narrative shifted rapidly from industrial supplier to headline defence beneficiary, with structural demand for ammunition, vehicles and services now evident. A clear breakout from pre-war levels below €100 into multi-hundred-euro territory marked the beginning of a sustained multi-leg uptrend.
2022: Validation and Scrutiny
Preliminary FY2022 results disclosed group sales of approximately €6.4 billion, up roughly 13 percent year-over-year, with bookings and production ramped to supply Ukraine and NATO partners. The defence thesis gained validation through improved revenue and booking visibility. A reputational note emerged when disclosure revealed that MS Motorservice, a subsidiary, had sold spare parts to Russian wholesalers through June 2022. Momentum continued through the year as visibility into orders improved, driving multiple buy-the-news rallies.
March 2023: DAX Promotion
Promotion to Germany's DAX index on 20 March 2023 brought structural bid and liquidity support. Passive and institutional flows broadened the investor base, and the narrative shifted to positioning the company as a large-cap European defence leader. Analyst coverage expanded and ETF tracker inclusion flows followed. The index entry helped sustain the uptrend through periodic consolidations.
2023: Complete Transformation
The company disposed of its large-piston business in early 2023 and agreed to sell the small-piston area by December. Q3 results in November confirmed guidance. On 24 October, management announced a Ukrainian joint venture focused on servicing, repair and localised production. The company deliberately exited its automotive legacy, hardening the narrative into a pure-defence tilt and positioning itself as a long-term industrial partner to Ukraine.
June–July 2024: Historic Orders
On 20 June 2024, the company announced its largest order in history: a framework contract for 155mm artillery ammunition valued up to €8.5 billion. On 1 July, a framework for up to 6,500 military trucks followed, valued up to €3.5 billion. CEO Armin Papperger publicly projected order backlog expansion toward €60–70 billion by end-2024 and announced capacity expansion plans including additional factories and production ramps. The announcements cemented Rheinmetall as Europe's principal ammunition and vehicle supplier, and investor expectations for multi-year revenue and earnings acceleration surged. The stock re-accelerated and broke out on contract headlines, with volatility spiking around announcements.
July 2024: Security Incident
Reports emerged that U.S. and German intelligence had foiled a Russian plot to assassinate CEO Papperger. The widely covered incident elevated geopolitical-risk awareness and reinforced the company's visibility in Europe's Ukraine support effort. Short-term volatility spiked around headlines, though no sustained technical breakdown followed.
2024–Mid 2025: The Supercycle Narrative
The company reported record FY2023 figures and guided substantially higher sales, with management referencing approximately €10 billion for 2024 and multi-year growth. Ammo output and services for Ukraine ramped further, and analysts raised targets as coverage expanded. The market narrative evolved from "beneficiary" to "supercycle winner," with heavy bullish coverage and speculative positioning. A parabolic rally unfolded into 2025, crossing €1,600 with successive all-time highs widely reported in mid-2025. Momentum stretched and positioning concentrated.
Early–Mid 2025: Peak Valuations
Profit and sales beats were reported, and market capitalisation briefly exceeded Volkswagen in March 2025. Media and analyst focus concentrated on ammunition profitability and valuation upside. The stock became dubbed one of Europe's hottest performers. Bullish analyst notes and high price targets coexisted with rising caution about stretched multiples. Peak price action arrived in mid-2025, with extremely strong rallies followed by the start of topping signals and vulnerability to broad market re-rating.
H1 2026: Reality Check and Consolidation
Market-wide and name-specific valuation scrutiny intensified through the first half of 2026, with commentary describing a "reality check" on stretched multiples by May. The company announced the sale of its remaining automotive business to Aequita for a provisional €350 million in early June, completing its transformation into a pure-play defence group. The FY2025 Annual Report was published in March. The storyline evolved to emphasise a pure-play defence company with an unparalleled order book, yet investors refocused on execution, capex requirements, margins and sustainable cash flow. Rotation and profit-taking occurred. A material correction from 2025 peaks ensued into 2026, with the latest price at 1111.6 as of 7 July 2026—a large drawdown from peak levels and a shift into consolidation and re-rating.
Key risks and downside factors
Rheinmetall operates in European and global land systems, munitions, and defence electronics alongside established competitors—BAE Systems, Thales, Leonardo, General Dynamics, Lockheed Martin, RTX, and Elbit—ranging from large primes to specialized vehicle and munition manufacturers. Order books across the sector have expanded sharply since 2022, though this growth sits alongside mounting regulatory oversight, export-control complications, and consolidation among European land-systems players. The company faces material execution and ramp-up demands, regulatory and compliance exposure tied to export controls, commodity and supply-chain pressures in munitions production, and relentless competition from both established US primes and increasingly consolidated European competitors [https://en.wikipedia.org/wiki/BAE_Systems, https://en.wikipedia.org/wiki/Thales_Group, https://en.wikipedia.org/wiki/Leonardo_S.p.A., https://en.wikipedia.org/wiki/Raytheon_Technologies, https://en.wikipedia.org/wiki/Elbit_Systems].
- Exposure to government defence procurement and large multi-year programs creates material revenue risk. Political shifts, budget cuts, or lost tenders can significantly reduce both current revenue and future backlog [industry context: post-2022 order volatility among major primes].
- Export control, sanctions, and compliance risks pose material threats. Licence denials, sanctions investigations, anti-corruption probes, or substantial regulatory fines can delay or cancel deliveries and inflict reputational damage—a pattern visible across the sector [8, 3, 21].
- Production and supply-chain ramp-up risk for munitions and vehicles. Rapid order growth is straining factory capacity, skilled labour availability, energy supply, and access to critical raw materials—all of which create real risk of delays and margin compression.
- Competing with entrenched US primes and pan-European consolidators—along with their joint ventures—creates sustained pricing pressure. Staying technologically competitive demands continuous heavy investment in R&D and capital expenditure, a structural reality that shows no signs of relenting.
Competitive landscape
Rheinmetall operates as a substantial European defence and automotive supplier, anchored in land systems, ammunition, sensors, and vehicle components. It competes against major integrated defence primes across Europe and globally, while simultaneously facing commercial automotive suppliers in its mobility segment. Since 2022, the company has aggressively expanded munitions and vehicle production, which has widened its exposure to execution risk and supply-chain complexity as it scales capacity and absorbs acquisitions. The business also carries exposure to export controls, political and reputational pressures, and competitive dynamics—all of which can materially influence contract awards and delivery schedules.
| Company | Ticker |
|---|---|
| Elbit Systems Ltd. | ESLT.NASDAQ |
| Leonardo S.p.A. | LDO.MI |
Private competitors
- KNDS (Krauss‑Maffei Nexter Defense Systems)
- MBDA (missile systems joint‑venture)
- Hanwha Defense
- Anduril Industries
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Start Free TrialPerformance Figures of Rheinmetall AG
Relative Performance vs Benchmarks
| Period | Rheinmetall AG | vs DAX | vs S&P 500 (SPY) |
|---|---|---|---|
| 1M | -7.35% | -9.06% | -8.76% |
| 3M | -27.58% | -32.75% | -37.84% |
| 6M | -40.91% | -40.03% | -49.21% |
| 1Y | -38.65% | -42.08% | -60.52% |
| 3Y | +371.04% | +310.57% | +294.06% |
| 5Y | +1342.27% | +1282.67% | +1258.58% |
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Start Free TrialHistorical valuation trends
How the company’s key valuation ratios (P/E, P/S, P/B and P/CF) have evolved over time compared to today.
| Period | P/E Ratio | P/S Ratio | P/B Ratio | P/CF Ratio |
|---|---|---|---|---|
| Current | 71.8 | 5.4 | 9.7 | 30.3 |
| 1Y ago | 101.5 | 7.8 | 18.7 | 67.5 |
| 3Y ago | 22.1 | 1.6 | 3.7 | 20.7 |
| 5Y ago | 15.8 | 0.6 | 1.8 | 4.3 |
Frequently Asked Questions
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What does Rheinmetall AG do?
What are the key metrics for RHM.XETRA?
How has Rheinmetall AG's stock price performed?
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What are the key risks when investing in RHM.XETRA?
- Exposure to government defence procurement and large multi-year programs creates material revenue risk. Political shifts, budget cuts, or lost tenders can significantly reduce both current revenue and future backlog [industry context: post-2022 order volatility among major primes].
- Export control, sanctions, and compliance risks pose material threats. Licence denials, sanctions investigations, anti-corruption probes, or substantial regulatory fines can delay or cancel deliveries and inflict reputational damage—a pattern visible across the sector [8, 3, 21].
- Production and supply-chain ramp-up risk for munitions and vehicles. Rapid order growth is straining factory capacity, skilled labour availability, energy supply, and access to critical raw materials—all of which create real risk of delays and margin compression.
- Competing with entrenched US primes and pan-European consolidators—along with their joint ventures—creates sustained pricing pressure. Staying technologically competitive demands continuous heavy investment in R&D and capital expenditure, a structural reality that shows no signs of relenting.
Who are the main competitors of Rheinmetall AG?
- Elbit Systems Ltd. (ESLT.NASDAQ)
- Leonardo S.p.A. (LDO.MI)
When does Rheinmetall AG report earnings?
Key Metrics
Valuation Metrics
Profitability Metrics
Growth Metrics
Dividend history
Long-term record of paid dividends (amount per share and dividend yield at the time of payment).
| Year | Dividend | Yield at payment | Avg. yield |
|---|---|---|---|
| 2026 | 11.50 EUR | 0.99% | 1.91% |
| 2025 | 8.10 EUR | 0.50% | |
| 2024 | 5.70 EUR | 1.09% | |
| 2023 | 4.30 EUR | 1.63% | |
| 2022 | 3.30 EUR | 1.81% | |
| 2021 | 2.00 EUR | 2.34% | |
| 2020 | 2.40 EUR | 3.44% | |
| 2020 | 2.40 EUR | 3.93% | |
| 2019 | 2.10 EUR | 2.09% | |
| 2018 | 1.70 EUR | 1.45% | |
| 2017 | 1.45 EUR | 1.69% | |
| 2016 | 1.10 EUR | 1.66% | |
| 2015 | 0.30 EUR | 0.61% | |
| 2014 | 0.40 EUR | 0.85% | |
| 2013 | 1.80 EUR | 4.60% |
Earnings history & estimates
Historical earnings performance shows how consistently the company meets or exceeds analyst expectations. Forward estimates provide insight into expected profitability and growth trajectory.
Historical earnings performance
Upcoming earnings report
Analyst estimates for upcoming periods
Key financial figures
Selected income statement, balance sheet and cash flow figures. Annual and quarterly, based on reported IFRS/GAAP financials.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Revenue | 9.94B | 9.75B | 7.18B | 6.41B | 5.66B |
| Operating income (EBIT) | 1.70B | 1.41B | 897.00M | 738.00M | 614.00M |
| Net income | 696.00M | 717.00M | 586.00M | 540.00M | 291.00M |
| Free cash flow | 1.41B | 988.00M | 345.00M | -175.00M | 419.00M |
| Total assets | 17.08B | 14.34B | 11.94B | 8.09B | 7.73B |
| Equity | 5.01B | 4.05B | 3.32B | 2.81B | 2.42B |
| Net debt | -368.00M | 1.24B | 1.06B | 427.00M | -118.00M |
PWP Leeway UG (haftungsbeschränkt)
