Helsing And Stark Beat Rheinmetall For €600 Million German Loitering Munition Contracts

German defense startups Helsing and Stark Defence are set to receive €300 million each in military orders for loitering munitions, while defense giant Rheinmetall AG gets passed over after failing to deliver a working prototype, Bloomberg reports.

• The Deal: Germany’s Defense Ministry plans to award €600 million in contracts to Helsing and Stark for loitering munitions destined for a German armored brigade in Lithuania.
• The Loser: Rheinmetall couldn’t produce a functioning demonstrator during tests. The company may get its own €300 million contract later as part of Germany’s €900 million total spend.
• The Timeline: Parliament is expected to approve the procurement in late February. Weapons deploy to Lithuania in 2027.

Helsing’s HX-2 And Stark’s Virtus Outperformed In Testing

Germany’s Bundeswehr tested both loitering munitions at a military combat training center in December. According to people familiar with the matter who spoke to Bloomberg on condition of anonymity, Helsing’s HX-2 and Stark’s Virtus “performed well in tests over the past months.”

Rheinmetall, Germany’s largest defense contractor, couldn’t keep up. The company failed to present a functioning demonstrator, Bloomberg’s sources said.

The Defense Ministry in Berlin declined to comment on the contracts. Rheinmetall and Stark also declined comment. Helsing did not respond to Bloomberg’s request.

The Contracts Are Part Of Germany’s NATO Eastern Flank Push

The loitering munitions will equip a German armored brigade stationed in Lithuania, part of the country’s effort to fortify NATO’s eastern border. Russian aircraft and drones have violated North Atlantic Treaty Organization airspace multiple times over the past year.

General Carsten Breuer, the Bundeswehr’s highest-ranking officer, framed the stakes during the December exercises: “This is the cradle of future combat operations for the German Armed Forces, namely multi-domain operations.”

Both Startups Have Ukraine Combat Experience

Helsing and Stark have tested their drones on the battlefield in Ukraine, where electronic warfare and combat conditions stress-test systems in ways no training range can replicate.

That said, Helsing’s track record isn’t spotless. Bloomberg reported last week that Ukraine is holding off on additional HX-2 orders after setbacks during front-line testing, citing a German military presentation. Helsing denied the report and said multiple Ukrainian units still want the drones.

DroneXL’s Take

This is a significant moment for Europe’s defense drone industry. Two startups just beat one of the continent’s biggest defense contractors for a €600 million prize. Rheinmetall’s failure to produce a working demonstrator is embarrassing for a company of that size. It’s part of a broader European push to build domestic drone capabilities, similar to the UK’s recent £240,000 investment in drone degree programs.

The Ukraine battlefield testing angle cuts both ways. Yes, both Helsing and Stark have real combat data. But the reported HX-2 setbacks show that even “proven” systems face problems when electronic warfare gets intense. Ukraine is also developing its own DJI Mavic replacement to reduce dependence on foreign suppliers—a sign that battlefield needs are driving rapid domestic development across the board.

Germany is betting that startup agility matters more than legacy contractor scale. Expect Rheinmetall to push hard for that remaining €300 million slice. They won’t let two startups dominate Germany’s loitering munition pipeline without a fight.

Editorial Note: This article was researched and drafted with the assistance of AI to ensure technical accuracy and archive retrieval. All insights, industry analysis, and perspectives were provided exclusively by Haye Kesteloo and our other DroneXL authors, editors, and YouTube partners to ensure the “Human-First” perspective our readers expect.

Last update on 2026-01-28 / Affiliate links / Images from Amazon Product Advertising API