Rheinmetall estimates Italian tank programme at about 8 billion euros through Leonardo partnership
Key Facts
Rheinmetall estimates the total size of the Italian main battle tank programme at about 8 billion euros, according to its May 2026 investor presentation, as part of its industrial cooperation with Leonardo to modernise the Italian army's heavy vehicles. The programme's industrial plan includes about 132 Panther tanks, alongside about 140 support vehicles performing support roles. The company presents these figures in two separate categories within the tank programme. The cooperation is led by Leonardo Rheinmetall Military Vehicles, an equally owned joint venture between the companies. The venture aims to develop and market new combat vehicles, starting with the replacement and renewal of the Italian army's heavy vehicle fleet. The partnership also includes an armoured vehicle programme whose total size Rheinmetall estimates at about 15 billion euros.
The Panther tank developed by Rheinmetall forms the industrial basis for the new tank intended for the Italian army, according to the company's statement on regulatory approval of the joint venture. The new tank is intended to replace the army's existing Ariete tank as part of the renewal of its heavy vehicle line. Rheinmetall said in the statement that Panther would be "the basis for the new main battle tank that will replace the Ariete in the Italian army". The planned cooperation extends to the development and production of other vehicles in the same family, including recovery, engineering and bridge-laying vehicles. These roles fall within the range of support vehicles covered by the industrial cooperation between the companies. The tank programme's plan thus combines main battle tanks with support vehicles serving different functions.
On armoured vehicles, the industrial plan for the Lynx programme includes about 1,050 vehicles, according to Rheinmetall's investor presentation. Leonardo had announced that the joint venture secured its first supply contract under the programme, to provide 21 combat vehicles to the Italian army. The same contract included an option for 30 additional vehicles, as optional vehicles under the contractual arrangements. It also included crew training and simulation systems alongside the vehicle deliveries, according to Leonardo's statement on the first contract. The company described the purpose of these systems as "improving crew training", as part of the equipment package associated with the new vehicles. The first contract and its additional option mark the contractual starting point for a programme whose industrial scale Rheinmetall presents in broader terms.
On implementation, the joint venture announced on 27 January 2026 the delivery of the first 4 new infantry fighting vehicles to the Italian army. The delivery was announced in a Rheinmetall statement issued from Rome as the armoured fighting vehicle programme got under way. The statement described the step as the delivery of "the first 4 new infantry fighting vehicles from the joint venture", marking an implementation milestone for the programme. The delivery of Lynx vehicles is part of the combat vehicle modernisation effort on which the German company is cooperating with Leonardo. According to Rheinmetall's project page, the partnership is based on "developing and marketing new combat vehicles", starting with the renewal of Italy's heavy vehicle lines. This activity includes cooperation on tanks and armoured vehicles, with different industrial plans and vehicle numbers for each programme.
Leonardo and Rheinmetall share ownership of the joint venture equally, according to its founding statement, placing the Italian cooperation within an industrial entity bringing the companies together. The venture's registered office is in Rome, while its operational headquarters is in La Spezia. The partnership arrangements stipulate that 60% of activities will be carried out in Italy, according to the same statement. Leonardo said that "60% of activities will be carried out in Italy", specifying the agreed geographical allocation of work. The venture's scope combines the development and marketing of new vehicles alongside planned cooperation in production. The renewal of the Italian army's heavy vehicle fleet is the starting point the companies identified for this activity, encompassing tanks, combat vehicles and support vehicles.
Across Rheinmetall's business, its backlog indicator stood at about 80.5 billion euros on 30 June 2026, compared with 56.0 billion euros in the corresponding period a year earlier, according to its first-half results. The indicator includes outstanding orders and expected drawdowns from framework agreements, according to the company's definition. In trading, RNMBY closed at 237.73 on 20 October 2026, according to EL7 data. Leonardo's next financial calendar event is the board meeting to approve its nine-month results, scheduled for 4 November 2026. The company had previously scheduled the meeting for 5 November 2026 before amending its financial calendar. Leonardo said in the amendment announcement that the meeting "will be held on Wednesday 4 November 2026".