Rheinmetall secures €770mn order from German army amid defence boom
The Düsseldorf-headquartered defence firm said in a statement on Monday that the deal includes 963 vehicles with swap-body systems, which have interchangeable containers. It also includes 425 unprotected transport vehicles (UTVs), which are non-armoured trucks used in low-risk areas.
As of around 16.00 CEST, Rheinmetall shares were up around 3% on the news.
'As a reliable partner of the Bundeswehr, we are delighted to be delivering additional vehicles and thus contributing to the mobility and operational readiness of the armed forces,' said André Barthel, chairman of the board of Rheinmetall MAN military vehicles, a joint venture between MAN Truck & Bus and Rheinmetall.
The orders are booked for the third quarter, while deliveries will take place before the end of 2025.
Rheinmetall has been one of the key business beneficiaries of Europe's defence splurge, with its stock rising more than 190% year-to-date.
Russia's war in Ukraine had already lifted demand for Rheinmetall products, and now investors are hoping to benefit from greater public spending on military equipment.
Pressure from US President Donald Trump has notably encouraged Europe to boost its defence capabilities, and Germany has agreed to alter its strict debt rules to facilitate the investment.
The Bundeswehr is currently undergoing a major process to update its technology, and Germany has vowed to lift its country's defence spending to 3.5% of gross domestic product in 2029.
This year, the NATO alliance also agreed to increase defence spending from 2% to 5% of GDP by 2035.
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