Rheinmetall Shares Surge as Europe Weighs Defense Ramp-Up

  • Europe weighs major spending package as US signals retreat
  • German manufacturer’s stock more than doubled in the past year
Marder infantry fighting vehicle manufacturing at a Rheinmetall plant in northern Germany.Photographer: Axel Heimken/Getty Images

Rheinmetall AG’s shares surged the most in more than two years as European officials contemplate a major new package to increase defense spending and support for Ukraine.

The German manufacturer’s stock rose as much as 11% in Frankfurt. The shares have more than doubled over the past year as military orders increased, especially from Germany. If Europe moves to increase spending further, it could push Rheinmetall to accelerate plans to increase its production capacity.