Why did Rheinmetall stock jump this week?

A new Luchs 2 contract in the mid three‑digit million‑euro range improved revenue visibility and boosted confidence in the land systems pipeline. That, plus steady sector flows into European defense stocks, supported a gain of more than 9.5% on the week despite a small dip on Friday.

What is the Luchs 2 contract and why does it matter?

Rheinmetall will deliver a turret and machine cannon for the Luchs 2 reconnaissance vehicle. The deal adds high‑value content and helps smooth future production schedules. It strengthens the backlog, supports cash flow visibility, and can lift operating leverage if execution keeps pace with rising European defense budgets.

Is Rheinmetall stock expensive at current levels?

By traditional metrics, yes. The stock trades around a 92.55 P/E, a price-to-sales near 7.24, and a price-to-book around 16.95, with a dividend yield near 0.47%. These require strong growth delivery. Investors often manage entry with staged buys or on pullbacks to key moving averages.

What should Swiss investors watch next?

Focus on the 11 March earnings for order intake, backlog conversion, and margin trends. Track technical levels around €1,800 and €1,690, and monitor EUR/CHF since the shares trade in euros. New contracts, delivery updates, or guidance shifts could move the Rheinmetall share price quickly.

Global Market Insights

RHM.DE Stock Today: February 23 — Luchs 2 Deal Backs 9.5% Rally

ByDanny Kontos February 23, 2026

Rheinmetall stock rallied over 9.5% this week after a fresh Luchs 2 contract strengthened the order book and visibility. Rheinmetall AG (RHM.DE) closed near €1,743.5, edging toward €1,800, while average analyst targets cluster around €2,170. Friday saw a small dip, but momentum held. With earnings due on 11 March, Swiss investors are weighing backlog conversion, margin traction, and EUR/CHF exposure. We break down what the Luchs 2 deal means, the current valuation, and technical levels driving near-term moves in Rheinmetall stock.