Publication date: September 11, 2025
For many investors, until a year ago, the name Rheinmetall was not very well known. This changed when the EU realized in early 2025 that it itself will have to invest more in the defense industry. Rheinmetall's share price then exploded from around €600 in February 2025 to €1,950 at the end of May 2025.
In this article, we offer you a closer look at the company and discuss the promising opportunities for investors.
In the article Defense stocks: promising but first at rest from early June 2025 we already paid attention to the industry where Rheinmetall plays a leading role. You can read the article HERE.
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Rheinmetall AG: A brief introduction
Rheinmetall AG, based in Düsseldorf, is a leading industrial company belonging to the DAX40 index. The company, founded in 1889, is active worldwide in the defense and automotive industries with over 28,000 employees and has developed in recent years into one of the leading players in the European defense sector. For investors, Rheinmetall is best known as a company that is benefiting greatly from rising defense budgets and increasing demand for military equipment.
Rheinmetall's activities are divided into two main segments. The Defense division develops and produces weapon systems, ammunition, armored vehicles and air defense systems. Among its best-known products are the Leopard 2 tank (in cooperation with Krauss-Maffei Wegmann), the Boxer and Lynx armored vehicles, and the newly introduced Panther KF51. In addition, the company supplies artillery, ammunition and electronic systems. These activities form the core of Rheinmetall's growth strategy, thanks in part to substantial orders from Europe, Australia and other NATO countries.
The Automotive division, operating under the name Rheinmetall Powertrain Solutions, focuses on components such as pistons, pumps and thermal management systems. Although this branch contributes to the company's stability, its relative share has shrunk due to the strong growth of the defense division. At the same time, Rheinmetall is investing in innovative solutions for the electrification and sustainability of the automotive industry.
What is the current situation at Rheinmetall?
The company is expanding significantly to continue meeting production targets, having opened Europe's largest ammunition plant in Unterlüß (Lower Saxony). With an investment of about €500 million, realized in just 15 months, the plant should produce up to 350,000 artillery shells annually by 2027, with a planned initial production of 25,000 as early as 2025.
The long-running Franco-German Main Ground Combat System (MGCS), intended as a successor to the Leopard 2 and Leclerc tanks, is getting accelerated. Political support is in place and work will soon begin on a production concept, followed by prototyping and rapid transition to production, in cooperation with Thales and KNDS.
Rheinmetall is building a plant in Weeze (North Rhine-Westphalia) to produce central fuselage components for the F-35 jet fighter. This investment amounts to about €200 million. Up to 36 components will be manufactured annually, with the first delivery scheduled for fall 2026. Employment will increase from 200 to more than 400 employees.
Financially, Rheinmetall is in a strong position. The order book has reached record highs, with a clear boost from the German government of €100 billion for defense. Both sales and profits have increased significantly in recent years, which has translated into a strong increase in the share price. Since 2022, Rheinmetall has been among the best-performing companies in the DAX40. In the second quarter of 2025, growth slowed down due to a change of government in Berlin. Nevertheless, Rheinmetall presented sales of €2.4 billion (+9 %). The order book rose slightly to €63.2 billion. The company maintains a target of 25 - 30% sales growth in 2025 thanks to further defense investments.
What are analysts' expectations for Rheinmetall?
Outlook remains positive, driven by structurally higher defense investments and increasing demand for modern equipment. For investors, this makes Rheinmetall a company that responds to current geopolitical developments while betting on innovation in the automotive sector. International banks have a 12-month price target ranging from €2,050 to €2,250. The current share price is € 1,750.
What is our expectation for Rheinmetall's share price?
After the top at €1,950 at the end of May, the share price has corrected about 25% to €1,480. This is a healthy move after the huge rise that preceded it.
Based on pattern recognition, our algorithm has two scenarios that both score high on probability. We clearly give you the levels and possibilities below.
Below is the price chart as of August 2024. In this scenario the correction is completed and the market is ready for the next sprint to the price target of €2,500. The price will encounter some resistance around €1,950. The stoploss is at a close below €1,325.
Scenario two assumes a completion of the correction at the €1,325 level. It is therefore likely that the price will first fall to this level and then rise to the price target of €2,500.
In both scenarios there is a nice price rise ahead. Our price target is higher than the overall market expectation.
Conclusion
Rheinmetall has experienced a huge rise and is correcting according to plan. The near future looks positive for the company.
You can consider a buy position and take it in several parts. Right now, take 25% of the total desired position. Furthermore, the remaining 75% after a close above €1,950.
If the price from the current buy level first falls back to the €1,350 level, you can consider buying 25% of the desired position. At the breakout above €1,950 you then buy the remaining 50%. Target price €2,500 and the stoploss is at a close below €1,325.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.