Rheinmetall Shares Fall on Delayed 'Boxer' Vehicle Order

Rheinmetall AG shares fell by as much as 5.3% on Monday afternoon following reports of a delay in a major German order for 'Boxer' armored vehicles, briefly dropping below the €1,000 mark for the first time since mid-October. The stock closed with a 3.6% decrease, trading at exactly €1,000.

The decline was triggered by a report from the industry portal "Hartpunkt," indicating the German procurement of 'Boxer' vehicles is now expected in February 2027, with a contract value slightly below previous estimates from Rheinmetall CEO Armin Papperger. Earlier projections suggested the order, from the Bundeswehr, would be finalized by early December, allowing the revenue to be recognized in the current calendar year.

Citigroup analyst Charles Armitage offered initial commentary, noting that delays are common with large orders, regardless of timing. He also expressed confidence that Rheinmetall will surpass its €100 billion order target for the year, even without the 'Boxer' contract immediately. Armitage suggested a lower contract volume could be linked to a different vehicle configuration.

While acknowledging a short-term disappointment, Armitage anticipates a potential reevaluation of the stock following the contract's eventual signing. The market reaction suggests investors are sensitive to the timing and size of key orders, even as broader expectations for Rheinmetall's overall performance remain positive, as evidenced by the analyst's continued bullish outlook.