Deutz, Jungheinrich, and Almonty: Where Investors Can Find Real Opportunities in the Market Right Now

Deutz and Jungheinrich: Traditional Mechanical Engineering Under Margin Pressure

Germany's engineering sector is currently facing mounting challenges. The operating environment has become noticeably more challenging, as reflected in the balance sheets of long-established companies such as Deutz and Jungheinrich. Both are feeling the effects of shifting demand and intense competition in their core European markets. Asian manufacturers, in particular, are entering the market with lower-cost alternatives, putting significant pricing pressure on established industry players and weighing on profit margins.

These headwinds have been particularly evident at Jungheinrich AG. The Hamburg-based specialist in material handling and logistics had to significantly revise its profit forecast downward for the current fiscal year 2026. While strong sales efforts continue to support solid demand, the company now expects revenue of between EUR 5.3 billion and EUR 5.9 billion, with order intake projected at EUR 5.5 billion to EUR 6.1 billion. However, earnings are no longer keeping pace with this level of business activity, highlighting the increasing pressure on margins.

Due to rising material costs, fierce price competition, and the lingering effects of a strike at the Lüneburg plant, the Executive Board now expects operating profit (EBIT) to range from only EUR 340 to 400 million, down from the previously targeted EUR 380 to 450 million. The EBIT margin is expected to fall to 6.2-7.0%. Free cash flow is shrinking significantly, primarily due to M&A activities, from the previously expected figure of over EUR 250 million to just over EUR 50 million. The share price reacted accordingly, declining. Nevertheless, the stock currently has solid support at EUR 23–25.

Deutz is also showing signs of the challenges facing the traditional capital goods sector. As an engine manufacturer, the company operates in a similarly cyclical market, where high procurement costs and a cautious investment stance among industrial customers are limiting growth. From a technical perspective, however, Deutz appears more promising. The shares are currently trading within a wedge pattern, with a potential upside breakout if they can overcome resistance at EUR 11. A successful breakout could pave the way for a move towards EUR 15. Here, speculation regarding the defense sector is also a key factor driving a potential rise. Like Jungheinrich, however, Deutz must also find ways to strike the right balance between maintaining market share and preserving healthy profit margins. Dependence on the general economic situation in Europe remains a key risk factor here.

Almonty Industries: Strategic Raw Materials Player Poised for Its Next Leap

While traditional industrial stocks are struggling with margins, the situation in the strategic metals sector is entirely different. Whoever controls the monopoly on critical raw materials dictates the rules of the game. The Canadian-American mining company Almonty Industries has worked hard over the past few years to carve out an exceptionally strong position for itself in this very area.

In early July 2026, Almonty announced a major development: the Sangdong Mine in South Korea had officially commenced processing operations. With this, the company is completing the transition from purely underground mining to the active production of marketable tungsten concentrate. Prior to the plant's start-up, an ore stockpile of approximately 139,700 metric tons, with an average grade of about 0.25% tungsten trioxide, had been accumulated. At current market prices, this stockpiled material has a theoretical value of approximately USD 68 million and will ensure the processing plant's initial supply for over two months.

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The fact that the commissioning of the Sangdong Mine coincides with a period of historically high tungsten prices is likely no coincidence, but rather the result of a profound market shift. As CEO Lewis Black explained in his industry letter, the tungsten market is once again experiencing genuine price discovery for the first time in thirty years of Chinese price dominance. Since China imposed strict restrictions on exports in early 2025 and simultaneously became a net importer of concentrate itself, there has been an acute shortage in the West. Benchmark prices for ammonium paratungstate have skyrocketed from around USD 330 per MTU at the beginning of 2025 to over USD 3,000 per MTU most recently.

Almonty reinforced this progress by upgrading its existing offtake agreements. The supply agreement with its US partner, Global Tungsten & Powders, was extended from 15 to 21 years, with the contract volume increasing by 40%. At current prices, this single agreement generates approximately USD 490 million in annual revenue. With its planned processing of tungsten into tungsten oxide, the Gentung project in Montana, the long-standing Panasqueira mine in Portugal, and its inclusion in the Russell 1000 and 3000 indices, Almonty has laid the groundwork for sustainable growth.

From a technical analysis perspective, Almonty Industries' stock presents an extremely exciting picture. The share is currently in an orderly consolidation phase after previously reaching a high of just over USD 24. The share price is currently moving within a wedge-shaped consolidation pattern, with its upper boundary at just under USD 16. A sustained rise above the USD 16.50 mark would confirm a successful breakout from the pattern.

However, an important first step toward a trend reversal would already be achieved if the share rises above USD 14.20, as this would end the short-term downtrend of the consolidation. If this breakout succeeds, the chart pattern suggests renewed upside toward USD 24, representing significant potential relative to the current level. On the downside, the stock appears to be robustly supported in the USD 12.00 to USD 12.50 range, as well as by several underlying horizontal support levels.

Deutz and Jungheinrich represent traditional European mechanical engineering. Both stocks remain high-quality operational plays but are noticeably suffering from economic headwinds, subdued margins, and strong competition. A sustainable recovery here will require patience and a broad-based economic rebound. Deutz is likely a better choice here, given its exposure to the defense sector and the technically interesting chart pattern, at least from a current perspective. Almonty Industries positions itself as a focused beneficiary of geopolitical shifts and critical supply chains. With the start of production in Sangdong, long-term guaranteed offtake agreements, and a solid financial foundation, the company is strategically well-positioned. The current consolidation phase on the chart offers an interesting entry point for investors looking to bet on a reliable supply of raw materials to the West, should the stock break above key resistance levels.