Long-term megatrends instead of short-lived hopes for peace: The stable foundation of Almonty Industries, Rheinmetall, and RENK Group

Almonty Industries – Expanding the tungsten empire for the West

For Western investors focusing on critical raw materials, the tungsten market offers a clear narrative: geopolitical security. Almonty Industries is tackling precisely this task and systematically building an independent supply chain. The recently completed acquisition of the Gentung Browns Lake project in Montana is a strategic coup. This advanced project, one of the few of its kind in the US, could be in production as early as the end of 2026. Annual production is expected to reach 140,000 tons. Almonty is thus securing not only another production facility, but also direct access to what is arguably the most important strategic market, supported by existing infrastructure and the US government's efforts to make supply chains for defense and high-tech more independent.

Almonty's diversification goes far beyond this one step. The Company is now pursuing a three-pronged strategy. While the Panasqueira mine in Portugal has been in production for a long time and is now being further expanded through an extensive drill program, the flagship Sangdong project in South Korea is approaching commercial production. Together with its new US foothold, Almonty is thus forming a transnational network in reliable jurisdictions. This geographical diversification minimizes operational risks and maximizes flexibility to respond to regional fluctuations in demand.

Demand for tungsten from secure sources will remain structurally high. China, the dominant producer, is continuously curbing its exports to supply its own industry. At the same time, Western industrialized countries are pushing ahead with their efforts to internalize critical supply chains for defense, aviation, and semiconductors. This policy will not be revised in the short term. For Almonty, this means a stable demand environment in the long term. The Company is positioning itself not simply as a mine operator, but as a strategic infrastructure for the technological and defense sovereignty of the West. Analysts see price targets between USD 9.57 and USD 12 per share, which is currently trading at only USD 5.59 on the NASDAQ.

Rheinmetall – Why the current setback could be an opportunity

Rheinmetall's strategic realignment is increasingly taking shape. The Company is working full steam ahead to sell its automotive supply business. The goal is clear: to transform itself into a pure defense contractor. With this step, management aims to implement its "Vision 2030." Starting this year, the Company plans to increase its revenue to EUR 50 billion. By comparison, revenue in 2021 was EUR 10 billion. This is a figure that would be almost impossible to achieve without this strategic focus. These plans are accompanied by a target operating margin of over 20%, which underscores the Company's absolute growth ambitions.

The latest operating figures underscore this momentum. In the first nine months of 2025, consolidated sales rose by 20% to EUR 7.5 billion, while operating profit increased by 18%. Particularly noteworthy is the well-filled order book of EUR 64 billion, which promises full production capacity for years to come. Even though operating free cash flow is currently burdened by high investments in new capacity, this willingness to spend shows how seriously Rheinmetall intends to meet the massive demand.

Against this backdrop, the current price setback could offer an entry opportunity. The fundamental outlook is robust. The strategic focus, historically high order backlog, and clear growth roadmap form a strong foundation. Investors who are convinced of the long-term "turning point" thesis in the defense sector may have the opportunity here to invest in a leading and increasingly lean company at a more attractive valuation level. The share is currently available for EUR 1,466.50.

RENK Group – Worth a closer look

The RENK Group presented figures for the first nine months that could hardly be better at first glance. Consolidated revenue rose strongly by 19% to EUR 928 million, while adjusted EBIT even increased by more than 25% to EUR 141 million. The driving force behind this growth is unmistakably the defense business. Even more decisive is the strong order intake, which climbed by 45% to EUR 1.25 billion. The total order backlog reached a record high of EUR 6.4 billion, securing capacity utilization for years to come. This fundamental strength is often overlooked during a short-term period of weakness for the stock.

A look at the segments shows where the strengths lie. Vehicle Mobility Solutions (VMS) is the powerhouse of the group and is growing dynamically with a book-to-bill ratio of 1.6x. Marine & Industry is also growing solidly. Only the smaller Slide Bearings segment is struggling with the weakening industrial environment. The strategic focus on the defense industry is clearly bearing fruit. In addition, the Management Board confirmed its forecast for 2025, signaling further confidence in the course of business. The Company is not only delivering hard figures, but is also investing in modern production structures in order to meet the increased demand efficiently.

Against this backdrop, the current price decline may be an opportunity. The Company's fundamental situation has not deteriorated; on the contrary, the order book is full, profits are growing, and the core defense business is on a solid footing. The foundation could hardly be more stable. For investors with staying power who are not fazed by price fluctuations, such a setback is a real opportunity. This is an opportunity to invest in a company whose future prospects are crystal clear and whose current operating performance far exceeds its stock market valuation. The share price is currently trading at EUR 49.235.

Despite the recent price declines, the long-term prospects for the companies presented here remain intact. As a tungsten producer, Almonty Industries is building a critical raw-material supply infrastructure for the West. Rheinmetall is pushing ahead with its strategic focus on the defense business with ambitious growth targets. The RENK Group, in turn, is shining with record order intake and highly profitable growth in its core business of drive solutions. For investors who believe in the continuation of the current defense and security "turning point," the current market nervousness and the associated price dips may offer attractive entry opportunities into these fundamentally well-positioned companies.