Rheinmetall slides as Germany scraps F126 frigates

Germany’s Defence Ministry has decided not to proceed with construction of six F126-class frigates, abandoning what had been planned as a major expansion of the country’s naval capabilities. The move halts a procurement project that was set to deliver new anti-submarine warships and to become one of the most significant defence contracts in the navy’s history.

Reports on June 24, 2026, said the government is shelving the purchase of the six F126 anti-submarine warships. The decision follows a period in which the F126 programme had been associated with challenges, including delays and cost issues highlighted in public discussion of the project.

In place of the F126-class vessels, the Defence Ministry’s aim is to acquire eight MEKO A-200 frigates. Official statements describe the planned MEKO purchase as an alternative focused primarily on anti-submarine warfare, maintaining the mission profile that had been assigned to the F126 ships.

The MEKO A-200 design represents a smaller frigate concept than the F126 class and is intended to be bought in greater numbers, with eight ships planned instead of six. This change alters the structure of Germany’s future surface fleet, with a shift in both the platform type and the industrial partners involved in the programme.

Rheinmetall (RHMd) had been expected to become the lead contractor for the F126 frigate programme. The prospective deal was valued at up to about €12.8 billion, subject to approval by Germany’s budget committee, and would have marked a significant expansion of the company’s role in naval shipbuilding.

The decision to abandon the F126 programme is therefore a major setback for Rheinmetall’s ambitions linked to this contract. The company now faces the loss of a large, multi-year revenue opportunity that had been closely watched by investors and industry observers.

Financial markets reacted quickly after reports emerged that Germany would drop the F126 project in favour of MEKO A-200 frigates. Rheinmetall shares tumbled in early trading on June 24, 2026, falling roughly in the double digits and by as much as about 14% at one point.

The share-price move reflects investor concern over the loss of the potential multibillion-euro F126 contract. With the procurement focus shifting to MEKO frigates, the expected benefits for Rheinmetall from leading the F126 build programme are now in doubt, underscoring how defence procurement decisions can rapidly reshape market expectations.