Rheinmetall shares surpass 1,000 euro mark amid defense contracts

Rheinmetall shares rose to surpass the 1,000 euro threshold on Wednesday, gaining 2.4 percent to reach 1,021.40 euros. The stock recovery follows months of losses, including a significant decline in June following failed German military frigate projects. CEO Armin Papperger characterized recent volatility as cyclical, noting that the company's market value has quadrupled over recent years.

The company received a multi-year framework contract from the General Directorate of Customs for the maintenance and emergency services of four LNG-powered customs vessels. Additionally, the defense sector is seeing movement in drone technology. While the startup Stark Defence is set to deliver the first batch of loitering munitions to the German brigade stationed in Lithuania, Rheinmetall remains a major player with its FV-014 system, which has a framework value of up to 2.4 billion euros.

Analysts are also focused on the Arminius program, involving Boxer-based wheeled reconnaissance vehicles with a volume of approximately 12.4 billion euros. Despite a massive order backlog of around 80 billion euros, some investors remain cautious due to the company's 34 percent year-to-date decline.