Geopolitical and Defence Spending Volatility: Rheinmetall's significant reliance on government defence contracts means its revenue and profitability are highly susceptible to changes in international relations, geopolitical tensions, and national defence budgets.

Strict Export Controls and Regulatory Compliance: As a major arms manufacturer, Rheinmetall operates under stringent national and international export control regulations, which can restrict its ability to sell products in certain markets and may lead to significant penalties for non-compliance.

Global Supply Chain Disruptions: Both its defence and automotive segments depend on complex global supply chains, making the company vulnerable to shortages of critical raw materials, components (e.g., semiconductors), and logistics bottlenecks, which can delay production and increase costs.