Rheinmetall stock slides as growth hype wanes, revenue forecast trimmed

The share price of German defence contractor Rheinmetall has fallen by about one‑third over the past year, dropping from a peak of more than €2,000 to below €1,200. The decline follows a period of rapid growth driven by large state orders, but a recent setback in the newly acquired marine business forced the company to slightly lower its revenue outlook.

Despite still posting strong two‑digit growth and high profitability, the firm’s reliance on government contracts and rising competition—particularly in the drone sector—has made investors cautious. CEO Armin Papperger remains confident in Rheinmetall’s capabilities across land, sea, air and space, but analysts warn that the hype surrounding the stock is fading and the company is not invulnerable to market corrections.