Rheinmetall shares slide over 40% despite €4.8bn Romanian defence contract

Rheinmetall AG’s share price has fallen more than 40% from its January peak, trading around €1,250 and down 3.34% on the latest session. Analysts cite a cautious market outlook: JPMorgan stripped its “Outperform” rating and cut the target price, while other banks warned of a prolonged weakness in the European defence sector.

At the same time the company secured a massive contract with Romania worth roughly €4.8 billion, covering 298 Lynx KF41 infantry fighting vehicles, additional armoured variants, modern air‑defence systems and 401,760 rounds of 35 mm ammunition. Investors have down‑played the deal because most deliveries are slated for 2028‑2030, limiting immediate revenue impact. CEO Armin Papperger recently bought €5 million of stock, signalling confidence in the long‑term outlook, but the market remains focused on short‑term execution risks and broader sector sentiment.