Shares Plunge

Rhein Metall’s shares fell sharply – up to 17 % intraday – as analysts recalculated the impact. The company is expected to write off roughly €2 billion of costs already expended on the project, which had exceeded €18 billion in total cost estimates and more than €2 billion spent since June 2020. Naval revenue guidance is being reset from €5 billion to €3 billion, a reduction of 40 %, reflecting the loss of the F126 core business and the reality of a shipyard running below capacity. Despite the setback, the naval segment accounts for less than 10 % of Rhein Metall’s total revenue, so the overall financial effect is contained.