Should investors sell immediately? Or is it worth buying Rheinmetall?<\/a><\/p>\nThat backlog, up from \u20ac56 billion a year earlier, is the headline number that underpins the bull case. Within it, the air defence segment alone carried a book of \u20ac3.141 billion, 32% higher than in the prior year, after first-quarter segment revenue surged 43% to \u20ac192 million. But the sheer size of the backlog also raises questions about execution. Converting political commitment and signed contracts into factory output will determine whether Rheinmetall can translate this year\u2019s projections into real earnings momentum.<\/p>\n
Geopolitics adds another layer of complexity. Progress in Ukraine peace negotiations \u2014 US President Donald Trump and Ukrainian President Volodymyr Zelenskyy have said they are \u201csignificantly closer\u201d to a deal \u2014 has weighed on defence stocks. Rheinmetall has been a prime beneficiary of Europe\u2019s rearmament push, and any market repricing of near-term escalation risk cuts directly into the premium the shares have enjoyed. A European Central Bank rate decision on June 11 further complicates the picture, as higher capital costs directly affect valuation for capital-intensive defence companies.<\/p>\n
The longer-term demand backdrop remains robust. SIPRI recently estimated Europe\u2019s military expenditure at $864 billion, a record for the continent. Germany alone plans to spend over \u20ac108 billion on defence in 2026 and aims to hit NATO\u2019s 3.5% of GDP target earlier than required. Rheinmetall\u2019s positioning in space-based surveillance \u2014 via the Rheinmetall ICEYE Space Solutions joint venture, which recently secured a billion-euro Bundeswehr contract for SAR satellite reconnaissance \u2014 and its rapid F-35 production buildout in Weeze, completed in under 18 months, underline the breadth of its capabilities.<\/p>\n
Yet the market wants proof that the order book flows into the income statement without further delay. The coverage ratio for this year\u2019s expected revenue stands at roughly 97%, giving a high degree of visibility. But the Q1 hiccup lingers. The next hard data point arrives on August 6, when the half-year results are due. Until then, the ILA becomes the stage for the narrative \u2014 and the \u20ac1,099.80 support level the line in the sand for the stock.<\/p>\n
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Read our updated Rheinmetall analysis…<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Rheinmetall showcases new hardware at ILA Berlin, but shares trade 40% below highs amid Q1 miss, geopolitical risks,…\n","protected":false},"author":2,"featured_media":102886,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[99],"tags":[112,1384,190,52125,13645,52619,1599,13815,8312,5692,10458],"class_list":["post-102885","post","type-post","status-publish","format-standard","has-post-thumbnail","category-berlin","tag-berlin","tag-billion","tag-germany","tag-ila","tag-its","tag-miss","tag-peace","tag-rheinmetall","tag-story","tag-takes","tag-talks"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@dk\/116715529585638861","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts\/102885","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/comments?post=102885"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts\/102885\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/media\/102886"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/media?parent=102885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/categories?post=102885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/tags?post=102885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}