Rheinmetall stock is falling mainly due to a combination of recent disappointing Q2 2025 earnings, investor profit-taking after earlier strong rallies, delays in German defense contract awards, and broader market and political factors. The company missed analyst expectations on sales (€2.43 billion vs €2.53 billion expected), EBIT, and free cash flow, partly due to vehicle system delays and facility disruptions. The German defense contract approval delays have pushed expected orders into the second half of the year, impacting near-term sales and contributing to investor caution. Despite this, the company has reaffirmed full-year guidance and boasts a strong €63 billion order backlog. Additional factors include stock technical corrections, ESG- related selling pressure, and concerns about high valuation and debt levels. Analyst downgrades and geopolitical news such as potential meetings between world leaders have also influenced short-term share price declines. Overall, while fundamentals remain strong long-term with an expected surge in orders later in 2025, short-term volatility has resulted from earnings misses, contract delays, and profit-taking by investors.