Germany cancels F126 frigate program, Rheinmetall shares see sharp decline
Berlin's decision to abandon the F126 program due to costs and delays has led to a loss of up to 13 percent in Rheinmetall shares.
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Germany's cancellation of the F126-class frigate program has triggered a sharp sell-off in the shares of defense company Rheinmetall. According to Euronews, the company's shares lost up to 13 percent of their value following the decision.
The Berlin administration abandoned the project, which covered six F126 warships considered among the largest frigates in the world, due to delays, projected cost increases, and technical risks. Had the order been fulfilled, it would have been one of Germany's largest warship acquisitions since World War II.
The Ministry of Defense reported that the total cost could have exceeded 18 billion euros if the program had continued. Initially, a budget of approximately 10 billion euros had been envisioned for the six ships. It was stated that approximately 2.3 billion euros had been spent on design, software, construction, and contractor payments before the project was canceled.
NEW ROUTE: SMALLER SHIPS
According to the plan of Defense Minister Boris Pistorius, Germany will shift toward smaller MEKO A-200 class frigates instead of the F126. Following Berlin's decision to place new orders with TKMS, shares of ThyssenKrupp Marine Systems saw an increase of approximately 10 percent in early trading.
Under the new plan, Germany is expected to acquire a total of eight MEKO A-200 frigates in addition to the four previously ordered. While the MEKO A-200s have a length of approximately 120 meters and a displacement of 4,200 tons, the canceled F126s were designed as much larger platforms with a length of 166 meters and a displacement of 10,500 tons.
The F126 ships were planned to be delivered in 2029. The program was first initiated during Ursula von der Leyen's tenure as defense minister, and an agreement was later made with the Dutch Damen Shipyards Group for production. Following the problems encountered, project management was transferred in March 2026 to Lürssen Naval Vessels, which was acquired by Rheinmetall.
Germany's naval planning also coincided with security issues in the Middle East. It was reported that Berlin is evaluating options to contribute to potential mine-clearing activities in the Strait of Hormuz alongside the UK and France, and that the frigate Fulda and the support ship Mosel were sent to the region weeks ago.