Rheinmetall is actively pursuing a larger share of the maritime defense market following its €1.35 billion acquisition of Luerssen’s warship division. CEO Armin Papperger confirmed the company is open to further strategic acquisitions as it seeks to capitalize on a massive wave of German naval spending.
Domestic naval investments are expected to reach €31 billion by 2035, prompting the defense giant to rapidly diversify beyond land systems like tanks and artillery. While Papperger clarified that Rheinmetall is not currently in talks to buy German Naval Yards Kiel, he signaled that the company remains ready to act on new opportunities once the Luerssen deal receives antitrust clearance later this month.
“We have entered the naval business, and we obviously aim to grow. And if we see good opportunities, we also aim to grow through acquisitions,” he told Reuters on the sidelines of a Handelsblatt conference in Berlin.
The scale of this expansion is reflected in the company’s 2026 outlook, which features a projected order intake of €80 billion. These figures are driven by significant procurement plans including €37.7 billion for Boxer armored vehicles and approximately €13 billion for the F126 and F127 frigate programs. As European nations face mounting pressure to modernize their own defenses, Rheinmetall’s move into the naval sector positions it as a central pillar of the continent’s restructured military industrial base.