Frankfurt, May 6, 2026, 20:13 (CEST)
This week, Germany’s market divide grew sharper. Rheinmetall shares held steady after the company missed revenue projections, sticking with its pitch that a lagging defense boom remains on the horizon. BioNTech, on the other hand, is cutting back its manufacturing footprint as it tries to put the COVID-era surge in the past—and paying for the shift.
The German market is in rally mode, but questions around execution remain. DAX added 2.12% to finish at 24,918.69 on Wednesday. Rheinmetall edged up 0.43% to €1,441.60—coming off a 3.40% surge the day before.
Rheinmetall posted a 7.7% jump in preliminary first-quarter revenue to €1.938 billion, coming up short of the €2.3 billion analysts had penciled in. Operating profit landed at €224 million, with margins climbing to 11.6%. The company reaffirmed its outlook for 2026: 40% to 45% growth in revenue, an operating margin near 19%, and a cash conversion rate topping 40%. Full Q1 numbers arrive May 7.
Rheinmetall shares held up after the miss, with the company chalking it up to a timing issue. Management pointed out that full-scale production is set at the Murcia plant in Spain and that truck deliveries to Germany’s military are on track for the second quarter. JP Morgan analysts flagged that the early update “might concern some investors,” but called the company’s rationale “reasonable.” Reuters
The chart setup painted a more mixed picture. Jeremy Krings, market analyst at XTB, pointed out that Rheinmetall led the DAX on Monday, finishing up 2.52% at the Xetra close. Still, he flagged that the daily chart remained bearish as long as prices stayed under the SMA20—set at €1,446.87. For context, the SMA, or simple moving average, is a trend-tracking reference for traders.
Christian Henke, chief market analyst at IG, isn’t ready to sound the all-clear. In his view, Rheinmetall has managed a rebound, but the shares still have work to do—Henke says they need to retake support before month-end. Should the stock finish below the lower edge of its trading range, the €1,000 psychological mark could quickly come into focus.
Defense names are still enjoying a supportive backdrop, but valuations are feeling the pinch. Hensoldt, the German supplier, clocked a 25% jump in Q1 revenue, landing at €496 million. Orders hit a new high—€9.80 billion on the books. CEO Oliver Doerre pointed to a shift: what used to be interest is now “concrete demand” as programs and procurement ramp up. Reuters
BioNTech is taking a tougher stance on jobs. According to finanzen.net, which cited dpa-AFX, the Mainz-based vaccine manufacturer intends to shutter a number of its production facilities, putting as many as 1,860 roles in jeopardy.
BioNTech said it’s planning to wind down operations in Idar-Oberstein, Marburg, and Singapore, along with CureVac locations, targeting a German exit by the end of 2027 and wrapping up in Singapore in the first quarter of 2027. For the first quarter, revenue landed at €118.1 million, while the company posted a net loss of €531.9 million. BioNTech also announced a $1 billion ADS buyback plan and sees recurring annual savings reaching roughly €500 million by 2029. Chief Financial Officer Ramón Zapata described the revenue as reflecting “seasonal demand” and added it was “in line with our expectations.” BioNTech
Competitive dynamics are in flux. BioNTech plans to hand off COVID-19 vaccine manufacturing to Pfizer before the year’s out, Reuters reported, with the Tuebingen site included in the CureVac deal. Shares of BioNTech dropped 6.1% after the earnings and site shutdown news.
Berlin wasted no time addressing worries over supply. On Wednesday, a spokesperson for the German government said other companies could pick up the slack if BioNTech’s vaccine production in Germany falls short. The government, the spokesperson said, still expects vaccine deliveries to the population to stay on track.
It’s execution, not just the headline figures, that’s in focus. Rheinmetall faces the challenge of translating its €73 billion backlog into actual deliveries—and cash—avoiding any further delays. BioNTech, for its part, must trim excess capacity yet still give enough support to its oncology efforts, which now underpin its growth story.
