Renk Group, Almonty Industries, Hensoldt – NATO calls for an arms race!

Renk Group - Record year 2024 and promotion to MDAX

Renk Group looks back on an exceptional fiscal year 2024. Revenue rose 23% to EUR 1.1 billion, which is right in line with the Company's forecast. Adjusted EBIT climbed to EUR 189 million, at the upper end of expectations and well above market consensus. Particularly impressive was the order intake of EUR 1.4 billion, which translates into a book-to-bill ratio of 1.3x. At the same time, net financial debt improved to less than 1.9 times adjusted EBITDA. CEO Susanne Wiegand emphasized the solid basis for the handover to successor Dr. Alexander Sagel.

Renk also got off to a strong start in 2025. In January and February 2025 alone, the Marine Division secured orders worth almost EUR 50 million, including propulsion systems for European patrol boats and frigates. The Vehicle Mobility Solutions segment was even more successful. Three significant orders with a volume of over EUR 400 million, including long-term deliveries until 2030, underscore the technological leadership. "Our proven solutions for extreme conditions are more in demand than ever," comments Michael Masur, Head of the VMS division.

Renk's latest achievement was its inclusion in the MDAX starting on March 24, 2025 – just one year after its IPO. Since the IPO, the share price has risen by more than 150%, accompanied by an increasing free float. CFO Anja Mänz-Siebje sees this as a "confirmation of our growth strategy". However, with a market capitalization of EUR 3.55 billion and a **price-to-earnings ratio (P/E) of over 170, the valuation remains very ambitious. Management expects to be able to expand further globally. The share price has recently come back from its high of EUR 40.59 and is currently available for EUR 33.69.

Almonty Industries – Providing access to a key raw material

Tungsten, known for its extreme hardness and heat resistance, is a strategic metal with dual relevance. In the defense industry, it is used for armor-piercing ammunition and robust military components. At the same time, it is driving innovation in future-oriented industries. In the aerospace industry, it enables heat-resistant engines, in electronics it is used to make high-performance microchips, and in e-mobility it improves battery performance. Renewable energies and robotics also benefit from its resilience. With China as the main global supplier, responsible for around 85% of production, tungsten is becoming a bone of contention for geopolitical interests – and alternative sources are rapidly gaining in importance.

Almonty Industries is positioning itself as a counterweight to Chinese dominance. The Company is developing the Sangdong mine in South Korea, one of the largest tungsten deposits in the world, and has already secured supply contracts with key players such as the Austrian Plansee Group and the South Korean molybdenum giant SeAH M&S. The latter supplies SpaceX, among others. Government support – for example, from the German state bank and the Korean government – underlines the geopolitical relevance. In addition, Almonty plans to relocate its headquarters to the US in order to get closer to North American customers and investors. Production is set to increase to 4.8 million tons per year in the second phase.

The tungsten market is on the verge of a paradigm shift. China's export controls and Western efforts to secure the supply chain are fueling demand for independent producers. Accordingly, Almonty's shares have gained more than 140% since the beginning of the year. Analysts such as Peter Thilo Hasler of Sphene Capital see further potential and have issued price targets of up to CAD 5.20. This is justified by an expected net profit of CAD 46.8 million in 2026. In addition, a US listing could increase visibility and align the valuation with international peer companies. Currently, the stock is trading at CAD 1.49, which would result in a P/E ratio of 7.8 for the coming year if expectations are met.

Hensoldt - Record figures and strategic decisions

Hensoldt AG presented impressive figures for 2024. Order intake rose by 39% to EUR 2.9 billion, driven by demand for radar systems and air defense solutions. Revenues climbed to EUR 2.24 billion, an increase of 21%, while the adjusted EBITDA margin before pass-through businesses exceeded expectations at 19.4%. Free cash flow increased by 26% to EUR 249 million, supported by economies of scale and cost synergies from the ESG integration. The dividend increase to EUR 0.50 per share underscores the confidence in the liquidity position.

Hensoldt is positioning itself as a pioneer in software-defined defense systems with its "North Star" strategy. Core elements are internationalization with the goal of generating 50% of revenue outside of Germany by 2030, agile production processes, and investments in AI-based solutions. With initiatives such as SAP S/4HANA and the bundling of logistics centers, the Company wants to optimize supply chains and keep margins stable. CEO Oliver Dörre points to key projects such as the Eurofighter radar ECRS Mk1, which has already contributed EUR 350 million to the order backlog. The digitization of sensors opens the doors to subscribable services, which is a potential multi-billion dollar market.

The defense company's share price has more than doubled since 2023, driven by Europe's rearmament wave. Analysts expect mid-term annual revenue growth of 10%, supported by a record order backlog of EUR 6.6 billion. However, caution is advised: the P/E ratio of over 400 already reflects high expectations. While plans like Macron's 5% defense spending target and German special funds are driving sentiment, short-term production bottlenecks – such as those caused by the relocation of the optronics division – could dampen the momentum. In the long term, Hensoldt remains a play on Europe's security ambitions. The stock has been consolidating since its high of EUR 75.90 and is currently trading at EUR 62.00.

Europe's arms race is good for business. Renk Group demonstrates that even suppliers of marine propulsion systems and special vehicles can become MDAX companies through economies of scale and export diversification. But without the right raw materials, production comes to a halt. Almonty Industries is becoming an indispensable building block with tungsten, both for armor-piercing ammunition and for green technologies. Hensoldt, in turn, shows how software-defined defense systems and AI-powered logistics can redefine modern warfare.