Saab, Almonty Industries and Thales: The starting gun has been fired

Saab: New combat technology meets surging orders

SEK 65.8 billion in new orders within three months: Saab is experiencing exceptional demand for its defence technology. Order intake more than tripled compared with the same quarter last year. Orders for Gripen fighter jets, the GlobalEye reconnaissance aircraft and systems for German frigates were among the contributors.

However, the stock market is already pricing in considerable growth. J.P. Morgan initiated coverage with a Neutral rating and a price target of SEK 690. Bank of America, by contrast, reiterated Buy and raised its target from SEK 720 to SEK 725, while Barclays sees even more potential at SEK 760.

Operationally, Saab continues its expansion. In the third quarter, revenue grew organically by 30.6% to SEK 20.55 billion. Operating profit increased by 42% to SEK 1.95 billion, while operating cash flow rose to SEK 6.79 billion.

On Monday, the group unveiled the Combat Boat 90 CX as a further development. The new military fast boat is designed to operate either manned or unmanned. Three variants are planned for reconnaissance, engaging maritime targets and short-range air defence. Sweden is the first customer, and production is already underway.

Saab is thereby expanding the deployment options for its proven CB90 platform. The new generation combines sensors, weaponry and autonomous functions and is also intended for use against drones.

Almonty Industries: The tungsten giant awakens

After more than three decades of inactivity, a new era is beginning for Almonty Industries. In the latest CEO newsletter, Lewis Black confirmed that a container of tungsten concentrate had left South Korea's Sangdong mine for the first time bound for a customer. For the tungsten specialist, this is a historic milestone on the path to becoming a commercial producer.

The fundamental prerequisites were already established in September when the processing plant received its final operating permit. This allows Almonty to process mined ore and deliver saleable concentrate. For subsequent round-the-clock operations, Lewis Black indicated monthly production of around 200 tonnes of tungsten concentrate.

Long-term sales are also secured. A 21-year offtake agreement is in place with Global Tungsten & Powders, a company within Austria's Plansee Group. This covers a total of 4.41 million MTU of tungsten concentrate and is intended to cover more than 90% of the first production phase. In parallel, Almonty is already working on the second stage of Sangdong's expansion.

Analysts also remain optimistic following the recent share price correction. On October 27, B. Riley reiterated its Buy recommendation with a price target of USD 20. Stifel values the shares at USD 21 and also maintains its Buy rating. Oppenheimer continues to rate Almonty Outperform with a price target of USD 19. Almonty shares are currently trading at around USD 8.71.

The current share price weakness creates long-term entry opportunities, as the reasons are clear. China continues to dominate global tungsten supply, while Western industrial and defence companies need additional sources. With the reopening of Sangdong, initial deliveries and long-term offtake agreements, Almonty is positioning itself as a key supplier outside China. The planned production expansion opens up additional growth prospects for the company.

Thales: More defence orders, lower price targets

Order books are growing, but some analysts are becoming more cautious. Thales' order intake increased in the first nine months by 14% to EUR 19.12 billion. Meanwhile, revenue grew organically by 8.1% to EUR 16.42 billion. Yet, JPMorgan lowered its price target from EUR 280 to EUR 265 and reiterated its Neutral assessment.

Morgan Stanley also reduced its target on the same day from EUR 264 to EUR 258 and maintained Hold. Berenberg followed with a reduction from EUR 275 to EUR 260, likewise leaving its Neutral rating unchanged. The price target adjustments contrast with continued strong operational performance.

The defence business is performing particularly strongly. In the first nine months, the division generated revenue of EUR 9.36 billion, an organic increase of 13%. The group is benefiting, among other things, from demand for air defence, military electronics and communications systems.

The latest announcement shows that this is translating into further orders. US subsidiary Advanced Acoustic Concepts received a USD 53.9 million order from the US Navy. Two remotely operated minehunting modules will be delivered, including technical support. If all options are exercised, the order value could rise to around USD 196.2 million.

The systems are intended to detect, locate and classify underwater mines from a safe distance. To this end, Thales combines sonar technology with the corresponding analysis software. The technology can be integrated into manned and unmanned maritime platforms.

Alongside its defence business, Thales is investing in space technology, cyber security and artificial intelligence. For 2026, the group continues to expect organic revenue growth at the upper end of its forecast range of 6 to 7%.

Conclusion

Saab is benefiting from rising defence spending and the development of new military systems. Thales is reporting growing orders and another contract with the US Navy. Almonty Industries operates at the beginning of the industrial supply chain. With the first commercial tungsten delivery from Sangdong, the company has reached an important milestone. The long-term offtake agreements and planned production expansion offer the opportunity to establish itself as a major supplier outside China.