Rheinmetall AG (RHMG.DE) shares fell sharply on Tuesday, dropping approximately 17% in early trading as concerns mounted that the German government may cancel the F126 frigate program.
The steep decline marks a continuation of selling pressure that has weighed on the defense giant, with the stock having tumbled 13% in the previous session amid similar reports.
The market move reflects investor anxiety over the potential loss of a cornerstone contract for the company.
The F126 program, which involves the construction of new frigates for the German Navy, represents a significant portion of Rheinmetall's long-term order book and revenue visibility.
Any disruption to this project would force a material revision of the company's growth outlook.
According to reports from FAZ, the uncertainty surrounding the deal has triggered a broad repricing of the stock.