Rheinmetall expects initial revenue from joint ATACMS missile production with Lockheed Martin in Germany in 2028, with demand seen lasting at least 15 years. The company also expects a €12.4 billion Boxer armored vehicle contract with the German military to be signed by year-end.
Rheinmetall expects initial revenue from joint ATACMS missile production with Lockheed Martin in Germany in 2028, with demand seen lasting at least 15 years.
"Naturally, there will also be sufficient capacity to replenish the U.S. military arsenals depleted by the conflict involving Iran. That won't happen in two years. It will take much longer," Armin Papperger, CEO at Rheinmetall, said.
The German defense company signed a memorandum of understanding with Lockheed last month to produce the short-range ballistic missiles at its Unterluess plant in northern Germany, where production facilities are due to be set up next year. The joint venture still requires approval, though Papperger said the process was well advanced and had the backing of the U.S. government.
Rheinmetall also expects a multi-billion-euro contract to supply Boxer armored vehicles to the German military to be signed by year-end. Rheinmetall's share would be worth €12.4 billion ($14.3 billion), with the total including partner KNDS reaching about €25 billion. A service contract to be negotiated separately would add around €4 billion for the two partners, while options for additional orders could be worth a further €25 billion, Papperger said.
"There is absolutely nothing standing in the way," he said.
The announcements come as Rheinmetall cut its fiscal 2026 sales outlook after Germany cancelled its F126 frigate programme in June, forcing the company to reduce its naval business sales forecast by €300 million ($346 million). Berlin scrapped the six-ship project after a government review found transferring it could cost more than €18 billion, opting instead for eight ThyssenKrupp Marine Systems MEKO frigates. Rheinmetall still expects full-year sales of €13.7 billion to €14.2 billion, up from €9.9 billion in 2025, with its naval division pulling in €334 million in the first half.
The defense contractor's other divisions posted strong first-half growth. Vehicle systems sales reached €2.43 billion, up 28 percent from a year earlier, while weapon systems, ammunition and protection systems drew €1.76 billion, a 33 percent increase. Air defense sales rose 62 percent to €478 million on production of Skynex and Skyranger systems for European buyers.
The ATACMS partnership deepens Rheinmetall's push into missile production as European governments boost defense spending after Russia's invasion of Ukraine. The company, which also acquired German shipbuilder NVL in March, is expanding across land, naval and missile segments. The Lockheed deal also positions Rheinmetall to serve a broader European deep-strike push, with several nations seeking longer-range weapons. Investors will watch for final approval of the joint venture and the Boxer contract signing before year-end.
This article is for informational purposes only and does not constitute investment advice.
