Investors are again active in titles from the armaments sector. It is the Rheinmetall industry leader that ensures movement.
According to Rheinmetall CEO Armin Papperger, the business around military drones could be the biggest bladder in the defense sector. Personally, he was not convinced that the so-called UAV business is as big as many people would think, Papperger said in an interview at the Messe Defense and Security Equipment International in London. “I think the UAV business could be a big bubble.”
UAV is the abbreviation for Unmanned Aerial Vehicle (drones). Papperger may be the first known personality in the defense industry, which questions the basics of this rapidly growing market. Drones have developed into a decisive part of the war in Ukraine. Armaments such as Lockheed Martin, Anduril and a number of startups either already produce or announce ambitious plans.
According to Papperger, governments have not yet signed enough contracts with Rheinmetall in order to be able to assume that sales with drones will reach the mark of 1 billion euros by 2030, as the manager had previously indicated. Rheinmetall is expecting drones this year with sales of 120 million to 140 million euros. Internal simulations showed that this goal was still accessible, said the manager.
Short-haul drones are so cheap to buy that a company has to produce them in large quantities in order to be profitable, added Papperger. The prices for UAVS would continue to decrease, and most of the short -stretch drones have now cost around 1,000 euros each. The price for long -distance roar also fell to around 2,500 euros each, he added. At the same time, the technology to combat UAVS quickly improves, which means that it decreases its effectiveness.
Rheinmetall is planning the sale of the business by auto parts by summer 2026. The sale of civilian business around the Power System division is planned for the first or second quarter of the next year, said CEO Armin Papperger. The aim of the DAX group is to convert Rheinmetall into a pure armaments group and to expand beyond traditional business into new areas such as space travel and marine.
In addition, the manager surrounded the plans for a purchase of the military shipmaker Naval Vessels Lürssen (NVL) during the Messe Defense and Security Equipment International. However, Papperger seemed to indicate that he did not want to deviate from the current product portfolio of the family company and wanted to build frigates and smaller boats. In contrast, the business for submarines from another German shipyard could be left.
Rheinmetall wants to try to accelerate the growth by taking over the takeover of smaller companies and production facilities, the manager added. However, the group is not yet willing to make a decision on the purchase of the Volkswagen plant in Osnabrück, he added.
Rheinmetall-CEO: Civil business is likely to be sold in the 1st half of the year
By Cristina Gallardo and Alistair MacDonald
Dow Jones-Rheinmetall is planning the sale of the business by auto parts by summer 2026. The sale of civilian business around the Power System division is planned for the first or second quarter of the next year, said CEO Armin Papperger. The aim of the DAX group is to convert Rheinmetall into a pure armaments group and to expand beyond traditional business into new areas such as space travel and marine.
In addition, the manager surrounded the plans for a purchase of the military shipmaker Naval Vessels Lürssen (NVL) during the Messe Defense and Security Equipment International. However, Papperger seemed to indicate that he did not want to deviate from the current product portfolio of the family company and wanted to build frigates and smaller boats. In contrast, the business for submarines from another German shipyard could be left.
Rheinmetall wants to try to accelerate the growth by taking over the takeover of smaller companies and production facilities, the manager added. However, the group is not yet willing to make a decision on the purchase of the Volkswagen plant in Osnabrück, he added.
The Rheinmetall share temporarily lists 0.05 percent higher at EUR 1,881.50 in Xetra trading. For industry colleagues Renk and Hensoldt, it is going downwards. Renk recently lost 0.45 percent to 70.58 euros, while Hensoldt gave up 3.02 percent to EUR 93.00.
Long -term prospects intact
Basically, the mood remains the titles from the armaments sector in view of the existing geopolitical conflicts. The continuing upgrading efforts in the EU, which ensure that the order books filled up with the industry companies, also contribute to the positive prospects.
Redaktion finanzen.net with material from Dow Jones
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