A €5 Million Vote of Confidence: Rheinmetall’s CEO Buys Shares as the Company Sheds Civilian Assets and Banks €1 Billion in Bundeswehr Orders

Armin Papperger has put his money where his mouth is. The chief executive of Rheinmetall purchased 4,000 shares in the defence group early June through his ATP Holding vehicle, investing roughly €5 million. The insider buy lands at a moment when the stock is under serious pressure, trading at €1,190 — more than 40% below its 52-week peak. With that, Papperger has signalled he sees value where many investors currently do not.

The bet is bold because the contrast between operational momentum and market reception has rarely been sharper. Rheinmetall’s order book stood at €73 billion at the end of March, equivalent to nearly five times expected annual sales. Yet the share price has fallen almost 26% since the start of the year. One key irritant: a free cash flow deficit of €285 million in the first quarter, weighed down by heavy capital expenditure and rising costs. Peace talk speculation around Ukraine has also dampened sentiment, even though Germany plans to spend north of €108 billion on defence in 2026.

Papperger’s purchase coincides with the group’s biggest trade fair appearance of the year. From June 10 to 14, Rheinmetall will use the ILA Berlin air show near the capital’s airport to present itself as a pure-play defence contractor — the first such outing since completing its strategic refocus. On display will be drones, satellites, air defence systems, and the MQ-28 Ghost Bat, a Boeing autonomous combat aircraft that Rheinmetall is adapting for the Bundeswehr. The mobile Skyranger 30 air defence system, which has gained fresh relevance since Russia’s invasion of Ukraine, will also feature.

Underpinning that exhibition is a steady stream of hard orders. The Bundeswehr has awarded Rheinmetall a contract for more than 2,000 military transport vehicles — both protected and unprotected versions. The deal is worth roughly €1.015 billion gross and covers multiple variants for material transport and logistics. For Rheinmetall, it serves as both a revenue contributor and a reaffirmation of its status as a core supplier to the German armed forces.

Should investors sell immediately? Or is it worth buying Rheinmetall?

International momentum is building too. Romania has placed a €5.7 billion package covering Lynx infantry fighting vehicles, Skyranger systems, ammunition and naval vessels, with deliveries scheduled between 2028 and 2030. It is believed to be the largest single foreign order in the company’s recent history. Rheinmetall intends to expand local capacity in Romania and provide technology transfer, reflecting a pattern where it delivers entire capability blocks rather than isolated pieces of hardware.

At the same time, the group is tightening its identity. Rheinmetall has agreed to sell its civilian Power Systems division to Munich-based AEQUITA for a provisional €350 million. The transaction, expected to close in the fourth quarter of 2026 pending regulatory approvals, will remove the automotive supplier business from the portfolio. The move frees up capital and management attention for defence, where political budgets are growing rapidly across Europe.

Analysts remain broadly constructive, albeit with differing views on execution speed. Barclays has a price target of €2,035, citing scale advantages in land systems. The consensus target is around €1,889, with the most optimistic scenario reaching €2,500. But for now, the share price paints a different picture. It closed last Friday at €1,190, down 0.42% on the day and 17% over the past month. The ILA Berlin showcase may prove decisive in persuading the market that Rheinmetall’s narrative of record orders and operational delivery is more than just a story. The half-year report due in August will provide the next set of hard numbers to back it up.