Rheinmetall’s Order Book Pushes Past €80 Billion as New Shell Deal Lands

Rheinmetall has added another artillery-munition contract to a backlog that has already climbed beyond 80 billion euros, underscoring how demand for 155-millimeter shells continues to anchor the German group’s business.

The Düsseldorf-based company said today that an unnamed international customer placed a low five-digit order for 155-millimeter artillery rounds. Rheinmetall put the value of the deal in the low three-digit millions of euros. Production has already started, and delivery is due to be completed by the end of 2027.

Shares were firmer on the day, though the move was modest. The stock rose 0.4 percent to 996.90 euros, while a separate market reading put the shares at 998.40 euros, up 0.5 percent. Even with the latest gains, the year-to-date decline remains steep at 36 percent.

The new contract fits into a broader expansion of Rheinmetall’s ammunition business. Since 2022, the company has been steadily adding capacity for heavy shells to meet surging demand from NATO members. Management is targeting annual output of around 1.5 million artillery shells by 2030.

That long runway for deliveries is one reason the business continues to run at high utilization. The latest order also shows how defence procurement is increasingly built around multi-year supply agreements rather than one-off shipments.

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

Rheinmetall’s backlog has become a central selling point even as the company faces some pressure on its outlook. After the cancellation in June of Germany’s multibillion-euro F126 frigate project, the group cut its full-year revenue forecast to between 13.7 and 14.2 billion euros. That implies a reduction of roughly 300 million euros from the original plan.

Analysts at JPMorgan also pointed last Thursday to the risk of a less profitable product mix. Against that, the sheer size of the order book stands out: Rheinmetall said its total backlog had recently risen to more than 80 billion euros.

Other recent contracts have added to the pipeline. On 26 August, Rheinmetall secured a call-off from Germany’s Federal Office of Bundeswehr Infrastructure, Environmental Protection and Services for a modular camp in Lithuania for up to 2,000 soldiers. The build-out phase is worth 250 million euros, with annual operating costs of 40 million euros. In early September, Rheinmetall Canada also won a supply agreement in the low single-digit millions of euros for spare components for mobile launchers used by the US Navy, with deliveries running until the end of 2028.

The company’s second-quarter 2026 figures had already pointed to the strength of demand. Revenue jumped 69 percent to 3.289 billion euros, while operating profit came in at 562 million euros. Rheinmetall said its order backlog had topped 80 billion euros by mid-year.

Investors will get a fuller picture on 5 November, when the group reports detailed third-quarter results. A separate German project, the Boxer programme “Arminius,” could also bring additional momentum before year-end, with a potential volume of at least 14 billion euros.