European defense stocks failed to rally during the Iran war, as investors reassessed high valuations, order uncertainty, and the battlefield impact of low-cost drone warfare.

German defense giant Rheinmetall has signed an agreement to acquire a 51% stake in Croatian unmanned ground systems manufacturer DOK-ING. The move aims to strengthen Rheinmetall’s capabilities in unmanned military technologies.

Rheinmetall Expal Munitions and Spain’s EM&E Group have submitted a joint proposal under the SILAM program to develop a fully indigenous, high-mobility rocket system for the Spanish Army.

Hensoldt has signed a long-term framework agreement to deliver Spexer 2000 ground-based surveillance radars to Rheinmetall for air defense and counter-drone systems.

Austria signed a €500 million agreement with Rheinmetall to boost its air defense capacity. The modernization project will begin in 2024 and last 48 months.