Rheinmetall Shares Surge on Potential U.S. Missile Production Deal

Rheinmetall led the market with a 5.7% jump to 1046.6 euros, while Hensoldt, Renk, and MTU Aero Engines saw gains between 1.7% and 4.1%. The proposed agreement focuses on the joint manufacture of Tomahawk and PAC-3 missiles, addressing shortages exacerbated by conflict involving Iran. According to reports, U.S. officials have shown unexpected receptiveness to the German proposal.

As Germany’s primary defense contractor, the Dusseldorf-based Rheinmetall stands to gain significantly from an expanded transatlantic footprint. The company has already solidified its position through a manufacturing partnership with Lockheed Martin, established in mid-2024. CEO Armin Papperger noted during a May investor call that the firm is already integrated into the U.S. missile supply chain, positioning it as a key beneficiary of the current push to scale up production capacity.