Rheinmetall Sees ATACMS Revenue From 2028, Boxer Deal Imminent

Rheinmetall expects to book its first revenue from the joint production of ATACMS short-range ballistic missiles with Lockheed Martin in 2028, according to CEO Armin Papperger. The German defence contractor signed a memorandum of understanding with the US firm last month to manufacture the missiles at its Unterluess plant in northern Germany, with production facilities slated to be set up next year.

Papperger said demand for the missiles is likely to remain robust for at least 15 years, partly due to the need to replenish depleted US military arsenals. "Naturally, there will also be sufficient capacity to replenish the U.S. military arsenals depleted by the conflict involving Iran. That won't happen in two years. It will take much longer," he said.

The joint venture still requires formal approval, but Papperger noted that the process is well advanced and has the backing of the US government.

Separately, Rheinmetall expects a multi-billion-euro contract to supply Boxer armoured vehicles to the German military to be signed by the end of the year. "There is absolutely nothing standing in the way," Papperger said. Rheinmetall's share of the contract would be worth €12.4 billion, with the total value including partner KNDS expected to reach about €25 billion.

A service contract to be negotiated separately would add around €4 billion for the two partners, while options for additional orders could be worth a further €25 billion, Papperger added.

The announcements come after Rheinmetall cut its sales outlook on Thursday following Germany's cancellation of the F126 frigate programme.