How Rheinmetall, First Hydrogen, and Siemens Are Turning AI Drones and Hydrogen Robots Into the New Defence Megatrend of 2026

Rheinmetall: Transformation Fueled by Billions

Rheinmetall is consistently driving its transformation into a technology group focused on autonomous defence systems. The acquisition of a 51% stake in the Croatian robotics specialist DOK-ING opens the door to heavy unmanned ground vehicles. The Komodo platform and the "Wingman" for main battle tanks are under development. Series production of Kraken K3 drone boats is getting underway in Hamburg, with the potential to reach up to 1,000 units annually. The partnership with Boeing on the MQ-28 Ghost Bat unmanned combat jet underscores the company's ambition in the air domain; the aircraft is scheduled to enter operational service with the German Armed Forces starting in 2029. Rheinmetall is positioning itself across all domains—land, air, sea, and space.

The order backlog reached EUR 73 billion as of the end of March, an increase of 31%. The latest EUR 5.7 billion contract from Romania for 298 Lynx vehicles and naval vessels provides planning certainty through 2030. The Q1 figures were mixed. Revenue, at EUR 1.94 billion, fell significantly short of expectations, and operating cash flow turned negative due to an increase in inventory. Nevertheless, the operating margin improved to 11.6%. The annual shareholders' meeting approved a dividend of EUR 11.50, an increase of 42%.

The latest collaborations are aimed at digital sovereignty. Together with Vantor, a 3D information platform is being developed for European armed forces that fuses satellite and drone data in real time. The partnership with LIG Defense & Aerospace addresses air defence gaps, while the OHB joint venture ensures secure satellite communications for the Bundeswehr. At the same time, Rheinmetall is exiting the civilian business—the sale of the Power Systems division to AEQUITA for EUR 350 million marks a decisive step toward becoming a pure-play defence group. The transformation is costly, but the strategic focus on growth areas is clear. The share is currently trading at around EUR 1,187.40.

First Hydrogen: Building a Tech Ecosystem

First Hydrogen is undergoing a remarkable transformation. What once began as a pure developer of hydrogen-powered commercial vehicles is increasingly evolving into an integrated technology company at the intersection of energy, robotics, and defence. The Canadian company is combining its core expertise in hydrogen mobility with autonomous ground vehicles and small modular reactors (SMRs) into a platform-based approach that extends far beyond traditional fuel cell applications. This strategic expansion of its business segments targets several global megatrends at once. These technologies will play a key role, particularly in markets that are set to grow significantly in the coming years. Companies that successfully combine zero-emission energy supply with smart automation could secure a real competitive advantage.

The company is currently working with its partner, Exodus Actuation Solutions (EAS), on a patented unmanned ground platform capable of amphibious travel. The vehicle uses a hybrid leg-wheel architecture with eight articulated segments, enabling continuous four-point ground contact. This allows it to navigate terrain that pushes conventional systems to their limits. The modular design enables rapid replacement of mission modules, ranging from logistics carriers to sensor platforms and drone launch stations. An experienced team of robotics and aviation experts is building on EAS's existing patents to drive development forward. The global robotics market, which analysts predict will grow to over USD 218 billion by 2031, offers promising prospects in this regard.

At the same time, the subsidiary First Nuclear is working on small modular reactors designed to provide weather-independent, low-carbon energy. In cooperation with the University of Alberta, the company is researching novel fuel materials for molten salt reactors. This technology could secure the production of green hydrogen while simultaneously meeting the rising energy demands of AI data centers. The combination of nuclear baseload power, hydrogen technology, and autonomous robotic systems creates a business model that goes far beyond mere vehicle sales. Now, First Hydrogen must translate this promising positioning into scalable revenue. The technological depth is there; now it is all about commercial implementation. The share is currently trading at around CAD 0.405.

Siemens: Between Industrial Robotics and AI Transformation

The Munich-based technology conglomerate Siemens has tested the HMND 01 Alpha, a humanoid robot, in live operations at its electronics plant in Erlangen. This marks a milestone for industrial robotics. The autonomous assistant completed shifts lasting more than 8 hours, moved 60 containers per hour, and achieved a success rate of over 90%. Siemens reduced development time from the usual 18 months to just 7 months using NVIDIA's Physical AI Stack. The portfolio is complemented by AI-controlled order-picking robots such as Simatic Robot-Pick-AI-Pro, as well as four-legged ANYmal inspection robots. The partnership with the German Aerospace Center (DLR) is also advancing human-robot interaction.

The latest financial results for the second quarter of 2026 show solid fundamentals. Order intake rose 18% on a comparable basis to EUR 24.1 billion, while revenue increased by 6% on a currency-adjusted basis. The book-to-bill ratio of 1.22 indicates a healthy order backlog. Free cash flow increased by 71%. Meanwhile, Siemens is pushing ahead with its realignment as the "ONE Tech Company". The breakup of the major divisions Digital Industries and Smart Infrastructure into 6–7 agile units is intended to eliminate duplicate structures. The planned deconsolidation of Healthineers and the USD 5.1 billion acquisition of Dotmatics underscore a focus on AI-powered software. The new Intelligence Center X is intended to finally move industrial AI from the pilot phase into series production.

Analysts are divided on the share's upside potential. While UBS, with a price target of EUR 310, and JPMorgan, with EUR 335, are clearly bullish, Bernstein Research urges caution with a target of EUR 300. Critics point to the group's margin, which fell to 15.4% from 16.9% the previous year. Operating income, up 3%, fell short of analysts' expectations. The AI investments, running into the billions, are ambitious—but the market now demands tangible results. The share is currently trading at around EUR 276.10.

The transformation of the defense industry and industrial automation are no longer a distant dream but an industrial reality. The megatrend of autonomous systems is being taken to a new level by hydrogen technologies. Rheinmetall is consistently driving this development forward with a clear strategy and a record order backlog of EUR 73 billion. First Hydrogen is evolving from a vehicle manufacturer into a tech ecosystem that intelligently links robotics and energy platforms. Siemens, for its part, is proving with its humanoid robots that the industrial AI transformation has long since entered series production.