Rheinmetall wins $1.1 billion share of UK Army training deal

Rheinmetall AG (XETRA: RHM) said it has secured a contract worth just under €1 billion, about $1.1 billion, as part of a 15-year British Army training modernisation programme, adding a long-term revenue stream and expanding its role in the UK defence market.

Rheinmetall Electronics UK will help deliver the Army Collective Training Service, or ACTS, through the Omnia Training consortium, the German defence group said. The contract covers live, virtual and constructive simulation systems designed to digitise collective combat training for British troops.

The award forms part of a wider £2 billion ACTS contract granted by the UK Ministry of Defence to Omnia Training, a consortium led by Raytheon UK. RTX said the group also includes Capita, Cervus, Rheinmetall UK and Skyral, and will serve as the British Army's strategic training partner under the Collective Training Transformation Programme.

The service contract runs for 15 years, with operational implementation set to begin in summer 2026, Rheinmetall said. The company described the UK as one of its core European markets and said the project will secure and create jobs at its UK sites. It did not disclose how the contract value splits between hardware, software and services, or give any margin expectations.

The deal gives Rheinmetall recurring exposure to a part of defence spending that is less tied to one-off equipment deliveries. Training and simulation contracts typically run over many years and can require continuous systems support, software updates and integration work. That can produce steadier revenue than single procurement awards, though the company gave no guidance on annual revenue recognition.

ACTS aims to replace older training methods with an integrated system that combines field exercises, simulation and synthetic environments. Rheinmetall's role centres on the land training element and the digital backbone needed to connect those environments.

For the UK, the contract is part of a wider effort to modernise force readiness using live, virtual and constructive training tools. For Rheinmetall, it extends a push into military training systems alongside its vehicle, munitions and land systems businesses.

The company has recently added other training-related work in Germany, including contracts linked to the Bundeswehr's combat training centre and Puma infantry fighting vehicle training systems. Those awards are separate from the UK programme, but they point to a wider emphasis on simulation and digitally enabled training across European land forces.

The UK contract also strengthens Rheinmetall's local industrial presence at a time when European governments are placing greater weight on domestic jobs and long-term support capabilities in defence procurement. RTX said the broader ACTS programme will create 270 jobs and sustain a further 150 across the consortium, though neither RTX nor Rheinmetall said how many of those roles belong to Rheinmetall.

The public disclosures do not specify the contract's payment profile, profitability, or any performance incentives and penalties. The €1 billion value and 15-year duration make the award significant for Rheinmetall's UK business and its training and simulation portfolio.