Analyst: Rheinmetall's ability to rapidly expand production capacity is being questioned.

Louis Knight of Third Bridge stated that the industry demand for Rheinmetall is strong, but there are doubts whether the German arms manufacturer can expand its industrial base quickly enough to meet this demand. He warned that Europe's defense growth ambitions, including the goal of increasing the annual production of main battle tanks from tens to hundreds, could face delays lasting for several years. Knight said that these delays could be caused by bottlenecks such as testing and certification sites for ballistic steel, severe shortages of experienced technical personnel, and delivery cycles of up to two years for specialized tools and machinery. He added that investors will seek evidence to show that Rheinmetall can deliver the equipment needed for European deterrence while maintaining record profit margins. The company's stock price fell by 5.2% to 1,565.50 euros.