Rheinmetall CEO expects ATACMS revenues from 2028, Boxer deal by year-end

Rheinmetall expects to generate initial revenue from joint ATACMS missile production with Lockheed Martin in Germany by 2028, with strong demand forecast for at least 15 years.

Rheinmetall expects to generate initial ​revenue from joint production of ​ATACMS missiles with Lockheed ‌Martin in Germany ​in 2028, CEO Armin Papperger told Reuters, with demand likely to remain strong for at least ‌15 years. The German defence company signed a memorandum of understanding with Lockheed last month to jointly produce the short-range ballistic missiles at Rheinmetall's Unterluess plant in northern ‌Germany, where production facilities are due to be set up next year.

"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," Papperger said. The ⁠joint ​venture still requires ⁠approval, but Papperger said the process was well advanced and had the backing of the U.S. ⁠government.

Rheinmetall, which on Thursday cut its sales outlook after Germany cancelled its F126 frigate ​programme, also expects a multi-billion-euro contract to supply Boxer armoured vehicles ⁠to the German military to be signed by year-end, said Papperger. "There is absolutely nothing standing ⁠in ​the way," Papperger said in comments published on Friday.

Rheinmetall's share of the contract would be worth €12.4 billion ($14.3 billion), while the total value including partner KNDS ⁠is 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, he said.

($1 = 0.8681 ‌euros)