Rheinmetall shares fall 22% on missed delivery targets and margin cuts

Rheinmetall shares fell 22% during the week, becoming a notable underperformer despite the broader narrative of German rearmament. The decline was driven by the company cutting its annual and margin targets because some orders are arriving later than expected, with customers still verifying ammunition quality. Analysts attributed the stock's weakness to a product portfolio that reflects previous conflicts rather than the current one, suggesting a misalignment with immediate defense needs.

In contrast, Lufthansa shares rose 17%, outperforming the MDAX. The airline reported better-than-expected earnings despite high fuel costs, aided by the acquisition of a minority stake in a Portuguese airline and expansion into South America. The divergence highlights the varying impacts of geopolitical and operational factors on European industrial and transport stocks.