Spectacular gains in 2025: Almonty up 8x, Rheinmetall up 2x - is TKMS next? Let profits run?

Almonty Industries – Full coffers for expansion

Almonty is currently marking a decisive milestone. The Sangdong Mine in South Korea is about to finalize the commissioning of its processing operations. This will create the largest production facility for this highly sought-after strategic metal outside of China. The world-class deposit, with its exceptional quality and very long life, undoubtedly has geopolitical significance.

The Sangdong Mine promises high profitability, as it was designed to be profitable even in a low-price environment. However, due to high demand and supply shortages, prices have been at a completely different level for some time now – far, far away from the low-price scenario. Everything, therefore, points to high margins.

With the recent acquisition of an advanced tungsten project in the US state of Montana, Almonty has secured its presence in a key region. A particular advantage is that existing permits and good infrastructure will enable a rapid and capital-efficient start to production, which the Company has announced for the second half of 2026.

In order to grow comfortably, Almonty recently carried out a capital increase with a volume of an impressive USD 129 million, which was in high demand and oversubscribed. This means that several new long-term institutional investors from the United States are now on board. The transaction, which was carried out at a price of USD 6.25 per share, was led by Bank of America. Almonty is already planning to relocate its headquarters to the US. As a logical step, Nasdaq will become the main stock exchange from January 1, 2026, but the listing on the Canadian stock exchange will be maintained.

The growth prospects for the tungsten producer are enormous. High demand, rising prices, and sales volumes promise high profits in the future. The success of the latest capital increase reflects the great interest of institutional investors. With its Nasdaq listing, Almonty has a wide-reaching presence that should provide positive momentum for the stock.

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Rheinmetall – Rising order intake

With a price increase of around 150% this year, the defense group's stock is the top performer in the German benchmark index. In the current fiscal year, Rheinmetall is targeting revenue of EUR 12.2 to 12.7 billion. The Company recently announced a target of EUR 50 billion for 2030, with rising margins. This contrasts with a current market capitalization of EUR 72 billion. Analysts predict an average upside potential of around 40% for the shares over the next 12 months.

Geopolitical tensions and defense budgets at unprecedented levels are causing order books to grow. A prime example of this is the recent order for 200 armored personnel carriers and 84 wheeled howitzers from the German federal government with a volume of EUR 4.2 billion. In addition, the German Armed Forces placed an order worth around EUR 1.7 billion in the new space satellite business segment. Specifically, this involves access to space-based data provided by SAR satellites.

Defense is the Group's core business, although it also operates in civilian business areas. Rheinmetall intends to divest its non-defense operations, which primarily comprise automotive supply and energy-related activities, and has stated that a separation is targeted in the course of 2026. According to the Company, negotiations are underway with two bidders. At the same time, Rheinmetall is expanding its core business through acquisitions. This year, for example, the purchase of NVL enabled it to expand its business activities into the marine sector.

TKMS – Orders surged sixfold last year

With its IPO, the marine specialist joined the public markets this year, offering an exciting growth story in the defense sector. The spin-off from thyssenkrupp Group, which retains a 51% majority stake, presented its figures for the past (interim) fiscal year at the beginning of the month.

The figures and outlook were well received by analysts. Deutsche Bank experts raised their price target to EUR 82, which corresponds to an upside of 25%. In the period under review, revenue increased by 9% to EUR 2.2 billion, while operating profit grew at a significantly higher rate, with adjusted EBIT rising by 53% to EUR 131 million. The margin was 6% and is expected to rise to over 7% in the medium term.

Free cash flow more than doubled compared to the previous year, reaching EUR 784 million. As part of the shareholder-friendly distribution policy, 30-50% of profits are to be distributed to investors as dividends. The order backlog grew by over 50% to EUR 18.2 billion, while new order intake surged sixfold, underscoring the Group's strong growth momentum.

The conditions could hardly be better for Almonty. Several factors point to success: high demand, high prices, and high profitability. With Nasdaq, the stock also gains a high-reach platform. Rheinmetall is becoming a pure-play defense stock through the sale of its civilian business activities. Strong growth, including inorganic growth, is convincing. Margins will increase significantly as a result of the focus. TKMS was able to increase its order intake sixfold in the last fiscal year. The order backlog is over EUR 18 billion. In contrast, the Company is valued at around EUR 4 billion.