Rheinmetall (RHM) rose 1.02% intraday after the German defense manufacturer secured a contract from Ukraine for artillery shells and propellant charges, valued in the high double-digit millions of euros. The contract value will be recognized in the second quarter of 2026, with completion scheduled for the first quarter of 2027. Production has already started at Rheinmetall's facilities in Spain.
Rheinmetall is among the largest producers of large-caliber ammunition and has been expanding production capacity as NATO defense spending rises. The Dusseldorf-based company has been entering new defense sectors as part of that buildout.
The win comes a week after Rheinmetall shares dropped sharply when Germany canceled its F126 frigate program over delays and anticipated cost overruns, a deal that would have made Rheinmetall the lead contractor on a project worth 12.8 billion.