Rheinmetall Scores Major EU Deal for Skyranger-35 Air Defense Systems
Rheinmetall has secured a major contract for its Skyranger-35 air defense systems, valued in the three-digit millions. Despite this significant deal, the company's stock has been declining due to market volatility and recent setbacks. A new analysis from October 11 offers insights on whether to buy or sell the stock in the stock market.
The contract, funded by an EU state through the 'Windfall Profit Mechanism' for Ukraine, will see Rheinmetall Italia SpA in Rome handle the production of the systems. The Skyranger-35, based on the Leopard-1 chassis, is a bestseller and in use by the German military. The enduring demand for drone defense systems underscores the strategic relevance of German defense technology.
Despite the positive fundamentals and the lucrative deal, Rheinmetall's stock has been in a short-term downtrend. Recent drops include a 2.57% decrease on October 7, 2025, and an overall decrease of 3.92% over the previous week. On October 11, the stock fell by 1.16% on XETRA and over 2% on Tradegate due to ongoing sector volatility in the stock market.
The contract win signals Europe's heavy investment in German defense technology, indicating a positive strategic direction for Rheinmetall. However, investors should consider the current market volatility and recent setbacks when deciding whether to buy or sell the stock in the stock market, as advised by the new analysis.
