Rheinmetall shares fell after reports that Germany plans to discontinue the F126 frigate programme and switch to smaller MEKO A-200 vessels built by Thyssenkrupp Marine Systems.
Reuters, citing the Financial Times, said senior officials including Defence Minister Boris Pistorius had informed industry representatives and senior lawmakers that Berlin intends to abandon the plan for six F126 frigates after delays and project difficulties and instead pursue the purchase of eight MEKO A-200 modular frigates.
Rheinmetall had been expected to benefit from a transfer of the prime-contractor role after its acquisition of NVL, formerly Lürssen Naval Vessels. Chief Executive Armin Papperger said last month the company was close to signing a contract in the second quarter to take over the programme from Dutch shipbuilder Damen.
Previous reporting said Rheinmetall had sought about 12 billion euros to assume the programme, which would have raised total costs for the six ships to about 14 billion euros, including roughly 2 billion euros already committed. Germany’s defence ministry had already taken preliminary steps in 2026 to secure MEKO production capacity as an alternative procurement path, with earlier reports indicating a first delivery target before 2030. The Defence Ministry and Rheinmetall did not immediately comment, according to Reuters.