Rheinmetall: A Multi-Combat System Provider At The Start Of A NATO Spending Super Cycle

Rheinmetall is well-positioned to benefit from NATO's defense spending surge, despite recent share stagnation and slower backlog conversion. Backlog has grown 32% since 3Q25, but revenue conversion lags have reduced absolute earnings, prompting a YE26 price target cut to €1,844. RHM's operating model projects 30%+ revenue and 40% EBITDA growth through 2028, driven by higher-value systems and strategic JVs with US defense firms.