German defense company Rheinmetall is entering the cruise missile market through a new joint venture with aerospace company Destinus, amid growing European concerns over security gaps after the United States canceled plans to deploy long-range missiles in Germany.
According to the Financial Times (FT), the project, called Rheinmetall Destinus Strike Systems, will produce cruise missiles and ballistic rocket artillery beginning in late 2026 or early 2027, the companies said while Rheinmetall published its quarterly results on Thursday.
The move comes days after US President Donald Trump reversed a Biden-era decision that would have seen American Tomahawk cruise missiles deployed to Germany this year. The deployment had been intended to strengthen Europe’s ability to strike targets deep inside Russia.
According to the report, the policy shift pushed Berlin and other European capitals to accelerate efforts to develop independent long-range precision-strike capabilities and seek temporary alternatives.
Destinus, founded in 2021, said last month it had successfully tested its new deep-strike system, Ruta Block 2. The missile reportedly has a range of 700 kilometers or more, although this is significantly shorter than the US-made Tomahawk missile systems.
The company already supplies cruise missiles to Ukraine and was recently included on a Russian Defense Ministry list of possible targets because of its role in arming Kyiv.
The joint venture marks Rheinmetall’s first expansion into cruise missile production, entering a market largely dominated in Europe by MBDA.
Traditionally known for manufacturing tanks, artillery systems, and ammunition, Düsseldorf-based Rheinmetall has rapidly expanded its defense portfolio amid rising European military spending since Russia’s full-scale invasion of Ukraine.
The company said its order backlog reached a record €73 billion, compared with €56 billion a year earlier. Rheinmetall also maintained its full-year forecast, expecting revenue growth of 40–45% in 2026, with projected sales exceeding €14 billion.
“Overall, we are well on course to achieve our ambitious annual targets,” Rheinmetall chief executive Armin Papperger said.
Meanwhile, Germany and Ukraine are planning to deepen defense cooperation by jointly developing and producing drones, including long-range systems capable of flying up to 1,500 kilometers (932 miles), German Defense Minister Boris Pistorius said during a visit to Ukraine on Monday, May 11.
Pistorius said Berlin intends to expand support for Ukraine’s defense industry and strengthen cooperation in unmanned technologies as both countries seek to advance military innovation amid Russia’s ongoing invasion.
According to Pistorius, German and Ukrainian companies are already working on joint projects involving drones with different operational ranges. These include systems with a range of less than 100 kilometers (62 miles) and long-range unmanned platforms capable of reaching targets up to 1,500 kilometers away.