Rheinmetall Germany cancels planned EUR 12bn order for F126 frigates; a major setback for RHM (with one silver lining)

Research evidence excerpt

Rheinmetall Germany cancels planned EUR 12bn order for F126 frigates; a major setback for RHM (with one silver lining)

J P M O R G A N Europe Equity Research

24 June 2026

Rheinmetall Neutral

RHMG.DE, RHM GR

Germany cancels planned EUR 12bn order for F126 Price (23 Jun 26):€1,169.8

frigates; a major setback for RHM (with one silver lining) Price Target (Dec-27):€1,500.0

Yesterday Germany decided to cancel a planned order with RHM for six F126 European Aerospace & Defense

ACfrigates with a total value of €12bn. The news was reported in the FT.com in the David H Perry, CFA

early hours of this morning and has been confirmed by RHM this morning. In our (44-20) 7742-5606

view, the news is a major setback for RHM, albeit we see one silver lining as david.h.perry@jpmorgan.com

explained below. J.P. Morgan Securities plc

Lucy Fitzgerald

(44 20) 3493-5251• RHM probably won’t make its order intake target in Q2 26 and FY26:

RHM is targeting order intake of €80bn in 2026, with c€12bn from the F126. lucy.fitzgerald@jpmorgan.com

It expected the F126 order in its Q2 26 order intake. If the German govt does J.P. Morgan Securities plc

not replace the F126 with another contract (and we think it is very unlikely that Jash R Naik

a large new naval contract could be awarded in a short time frame) then it seems (91 22) 6157-3797

jash.naik@jpmchase.com

very unlikely than RHM can make its FY26 order intake. (Indeed, if Germany J.P. Morgan India Private Limited

also reduces the initial size of the Boxer contract, RHM could fall significantly Titus MacDermot

short of its FY26 order intake target.) (44-20) 3493-7137

• Does this undermine the business case for acquiring the NVL shipyard for titus.macdermot@jpmorgan.comJ.P. Morgan Securities plc