The geopolitical tensions, especially in Europe, continue to only temporarily drive the shares of Rheinmetall, HENSOLDT and RENK.
• Defense stocks are rising
• Trump-Putin summit postponed
• Major order for Rheinmetall continues to have an impact
Thanks to a major order, Rheinmetall shares have picked up speed again in the last few days. On Wednesday it initially rose in XETRA trading, but ultimately fell by 1.68 percent to 1,797.50 euros. After initial profits, the two other large defense companies HENSOLDT and RENK also went in different directions, ultimately falling by 1.27 percent to 97.40 euros and up by 1.07 percent to 97.40 euros.
Ukraine war remains in focus
The driver for defense stocks in the middle of the week is, among other things, the fact that a Trump-Putin summit has moved into the distance again and hopes for a ceasefire in the Ukraine war have suffered a setback as a result.
As Donald Trump explained, he only wants to meet with the Kremlin leader then Vladimir Putin meet if a productive summit with the Russian is expected. The US President also left open the possibility of supplying American Tomahawk cruise missiles to Ukraine. “We haven’t made a decision yet,” said Trump. We’ll see what happens. However, it is unclear whether he was referring to a possible meeting between him and Putin or to the question of cruise missiles.
According to analyst Chloe Lemarie from Jefferies Research, the fact that a meeting between the two heads of state is becoming more distant should have a positive effect on arms stocks. “The lack of progress reinforces our assessment that a ceasefire remains unlikely in the short term,” commented the expert. Foreign exchange strategist Francesco Pesole of ING Bank also believes that recent developments justify an “extremely cautious stance on the part of the markets towards hopes of a ceasefire in Ukraine.”
Kremlin: Putin not at G20 – meeting with Trump not canceled
According to information from Moscow, preparations for the meeting between Kremlin chief Vladimir Putin and US President Donald Trump are continuing, contrary to the cancellation speculation. The meeting must be well prepared because no one wants to waste their time, neither Trump nor Putin, Kremlin spokesman Dmitry Peskov said, according to Russian news agencies. The rumors of a cancellation were false, he emphasized. He has now ruled out Putin’s participation in the G20 summit in November in South Africa.
Last week, after a phone call with Putin, Trump announced a meeting with the Kremlin chief in Budapest. He later said that this would take place “probably in the next two weeks.” Regarding media reports that the appointment was shaky because of Russia’s insistence on maximum demands, Trump only said that he didn’t want a “wasted meeting.” Peskov emphasized that Russia’s position has been known for a long time. Moscow had already sent brake signals and emphasized that a meeting had to be well prepared.
Putin is represented at the G20
While the meeting in Budapest remains on the agenda for the time being, Putin will not travel to South Africa at the end of November for the summit of the Group of 20 large industrialized and emerging countries (G20). The president will not personally attend, but Russia will be represented at a high level, said Peskov. In the past, Foreign Minister Sergei Lavrov has mostly represented Russia.
New major order drives Rheinmetall shares
The Rheinmetall share recently received a boost from one of the largest orders in the company’s history: Rheinmetall is supplying a total of 222 wheeled infantry fighting vehicles of the “Schakal” type through the Artec joint venture. The total value of the project is around 3.4 billion euros, of which around 3 billion euros are attributable to Rheinmetall. Deliveries are planned for the period from 2027 to 2031. There is also an option for a further 248 vehicles, which further increases the potential of the order.
Strategic expansion into naval shipbuilding
Parallel to the major tank order, Rheinmetall is taking a strategic expansion step: with the takeover of several Lürssen Group shipyards, the group is moving into naval shipbuilding. This acquisition marks a significant change in the company’s direction from a specialized provider of land and air systems to a comprehensive systems house for all military domains.
Through this diversification, Rheinmetall is strengthening its position as a full-service provider in the defense sector and tapping into additional growth markets. The expansion underlines the long-term positive prospects of the company, which benefits from the billion-dollar orders for European defense modernization.
Analysts see great upside potential
Wall Street reacts positively: 21 of 25 analysts surveyed recommend buying Rheinmetall shares, only one recommends selling. Bloomberg cites an average price target of around 2,167 to 2,174 euros. UBS goes one step further and sees a price target of 2,500 euros. Despite the recent rally, the share is currently still below its 52-week high of EUR 2,008 from October 3, 2025 and therefore still offers room for growth.
Strong industry environment
Geopolitical tensions, especially in Europe, ensure stable demand for defense equipment. As a central supplier, Rheinmetall benefits significantly from EU arms programs and benefits from robust order books.
The entire European defense industry is benefiting from fresh momentum. The EU is providing 1.5 billion euros for defense spending, giving investors a positive signal for growth.
Dividend increases significantly
Another plus point for shareholders is the expected dividend distribution. A dividend of 11.37 euros per share is forecast for 2025 – a sharp increase compared to the 8.10 euros of the previous year. This attractive return also makes Rheinmetall interesting for long-term investors who are looking for regular income in addition to price gains.
RENK reports major order from Poland
In addition, the tank transmission specialist RENK was also able to land a major order. According to company information on Wednesday, HSWL295 transmissions for the K2 main battle tank with a total value of over 70 million euros were ordered from Poland.
Peace and quiet at HENSOLDT
While RENK is making headlines with this major order for tank transmissions and Rheinmetall with the tank order and the shipyard takeover, things have remained quiet at industry colleague HENSOLDT in the last few days. However, events like these large orders raise hope for increasing sales and profits also for HENSOLDT and other security stocks.
Editorial staff at finanzen.net with material from dpa-AFX