Raw materials, armaments, returns: The investment logic behind Almonty Industries, Rheinmetall, and Lockheed Martin

Almonty Industries – Tungsten is strategically crucial

Geopolitical tensions are changing the rules of the game for raw materials. While many eyes are focused on oil, precious metals, or rare earths, there is one critical raw material that is often overlooked: tungsten. Indispensable for the defense industry, high-precision tools, and future technologies, its supply is becoming a matter of national security. China controls over 80% of global production and is continuously tightening export controls. For the West, this means an existential dependency that must be reduced as quickly as possible. In this environment, companies that can establish reliable, non-Chinese supply chains are gaining in value.

This is precisely where Almonty Industries' strategy comes into play. The Company has taken the decisive step from project developer to producing mining company. With the start of active mining at the Sangdong mine in South Korea, Almonty has reached a milestone. This mine is set to become one of the largest and longest-lasting sources of tungsten outside China. However, it is not only the size that is decisive, but also the strategic embedding. The Company has long-term off-take agreements, including for US defense applications, and is establishing a diversified production base in South Korea, Portugal, and the US. This geographic diversification minimizes political risks.

What makes Almonty truly valuable is its combination of operational patience and geopolitical timing. New tungsten mines are highly capital-intensive and take years to reach production maturity. Almonty has gone through this difficult start-up phase. Its value today lies in its existing, approved, and now producing facilities in legally secure regions, its expertise in handling this complex metal, and its direct involvement in security-critical supply chains in Western nations. In a market that is shifting from pure economics to resilience and security, this position is virtually unassailable and forms the foundation for sustainable growth. The stock recently shot up to USD 12.98 and is currently trading at USD 11.10 on the NASDAQ.

Rheinmetall – 3 reasons for continued momentum

For Rheinmetall shareholders, 2026 is starting with remarkable momentum. The Company is benefiting from a unique mix of a bulging order pipeline and strategic expansion of its business model. The order backlog stands at approximately EUR 62 billion. CEO Armin Papperger recently even signaled potential new orders of up to EUR 80 billion in 2026. These gigantic sums are fed by concrete large-scale projects for wheeled armored vehicles, frigates, and ammunition. Operational capacity utilization is thus secured for years to come.

In addition to its core business, Rheinmetall is systematically tapping into new, promising areas. One flagship project is its partnership with OHB to build a satellite-based military communications network for the German Armed Forces, a billion-euro project. At the same time, the Group is expanding its marine segment, among other things, through the planned acquisition of Lürssen's warship division. These strategic expansions show that Rheinmetall is not only benefiting from current demand; but is also actively shaping its portfolio for the defense technologies of tomorrow.

The financial outlook underscores this picture. Analysts expect strong growth in revenue and profits in 2026, driven by high capacity utilization. In the long term, the Group's management is aiming for a revenue target of EUR 50 billion by 2030. Strong quarterly figures from US defense companies are providing additional momentum, boosting the entire sector. Together with concrete progress such as the first Lynx tank deliveries to Italy and Ukraine at the beginning of the year, this underscores the fundamental strength of the Rheinmetall story. The stock is currently trading at EUR 1,851.

Lockheed Martin – AI as a strategic lever

The role of the chief information officer has fundamentally changed at defense companies such as Lockheed Martin. Instead of just providing IT systems, the CIO organization now acts as a central hub between new technologies and operational business processes. Artificial intelligence is no longer introduced in isolation in individual departments, but is coordinated, scaled, and controlled under one roof. This approach gives IT leadership new weight when it comes to designing processes and managing risks, while AI is finding its way into more and more areas.

The Company's business is driven by unprecedented geopolitical dynamics. Global tensions and associated armament plans, such as the discussion about a massive increase in the US defense budget, are creating a stable demand environment in the long term. Lockheed Martin is benefiting from a record order backlog of around USD 180 billion, which will generate revenue for over two and a half years. Key programs such as the F-35 fighter jets and the planned upscaling of the PAC-3 missile defense system offer solid growth paths and enormous planning security for the coming years.

Despite this strong tailwind, the Company faces familiar challenges. Profitability continues to suffer from delays and cost pressures on large fixed-price projects. Even though the worst inflation-related overruns are likely over, margins remain under pressure. Analysts consider the current valuation to be fair, as the recent jump in the share price has already priced in a lot of optimism. For long-term investors, however, robust cash generation and dividend payments that have grown over two decades continue to offer stability in an uncertain macro environment. The share price is currently trading at USD 594.95.

The analysis demonstrates the logic of defensive investments in uncertain times. As a non-Chinese tungsten producer, Almonty Industries creates strategic value through security of supply. Rheinmetall is benefiting directly from European rearmament with a bulging order pipeline and expansion into new domains. Lockheed Martin is on solid footing thanks to a record order backlog and systemically important defense programs, even if margin pressure remains. Together, they form a value chain from critical resources to high tech, offering access to two megatrends: commodity security and geopolitical deterrence.