Shares in German arms manufacturer Rheinmetall experienced a significant drop following reports suggesting the potential cancellation of a multi-billion euro contract for the F-126 frigate. The contract, vital for Rheinmetall, is reportedly under review due to concerns over cost and delays. This setback casts doubt on the company’s future naval projects and financial performance. Rival shipbuilding company TKMS is positioned to potentially benefit should the F-126 contract be terminated and re-tendered. The news has triggered investor concern, leading to a substantial sell-off of Rheinmetall stock. The German Ministry of Defence has not yet officially confirmed the cancellation, but sources indicate a decision is imminent. The F-126 project is a key component of Germany’s naval modernization efforts.