Leonardo SpASelloff spread to Leonardo as part of broader European defense sector decline on F126 cancellation.
European defense stocks sold off sharply after reports that Germany plans to abandon its multibillion-euro F126 frigate program, the country's largest warship commission since World War II. Rheinmetall, which had been expected to lead the contract worth up to €12.8 billion, dropped as much as 17% in midday trading, putting the stock on track for its worst session in decades. Instead, Germany is expected to buy eight smaller MEKO A-200 frigates from TKMS, whose shares jumped on the news. The selloff spread to Hensoldt, Renk, Saab, Leonardo, and BAE Systems, even as the broader European market remained relatively calm. Germany's Defense Ministry cited delays, expected cost increases, and risks of changing the main contractor, noting that the F126 program had already faced software delays, cost overruns, and tensions with Dutch shipbuilder Damen Naval.
Leonardo SpASelloff spread to Leonardo as part of broader European defense sector decline on F126 cancellation.
BAE Systems plcSelloff spread to BAE Systems as part of broader European defense sector decline on F126 cancellation.
Hensoldt AGSelloff spread to Hensoldt as part of broader European defense sector decline on F126 cancellation.
Rheinmetall AGRheinmetall was expected to lead the F126 contract worth up to €12.8 billion; program cancellation caused 17% drop.
NVIDIA CorporationGermany expected to buy eight MEKO A-200 frigates from TKMS instead of F126, boosting TKMS shares.
Germany scraps F126 frigate program, ending Damen's role as main contractor and losing expected revenue.