Take advantage of the panic: Why buy Rheinmetall, Almonty Industries, and DroneShield now?

Rheinmetall – More than just a short-term defense boom

The geopolitical landscape has changed permanently. Even if short-term hopes for peace may depress prices, the structural trend is clear. European countries and NATO must make up for decades of underinvestment in defense. Budget targets such as 2% of GDP are often only the starting point, with many countries planning even higher spending in the long term. This catch-up process creates a predictable, multi-year growth path for leading equipment suppliers. Demand is broad-based, ranging from classic artillery ammunition to state-of-the-art drone defense.

Rheinmetall is using this economic tailwind for a profound transformation. The Company is sharpening its profile as a pure defense contractor and will be organized into five lean divisions from 2026, including new growth areas such as air defense, digital, and marine. This diversification is not an end in itself. It drives profitability. While the core vehicle business benefits from volume effects, high-margin segments such as ammunition and electronics are expected to raise the Group's margins to around 20% in the long term. The planned fivefold increase in revenue by 2030 will therefore be achieved not only through higher volumes but also through a better mix of business areas.

The strategy is not a pipe dream, but is already reflected in today's business activities. Recent major orders, ranging from logistics trucks for Denmark to hundreds of loitering munition systems for a NATO partner, show that demand is concrete and supply chains are functioning. At the same time, Rheinmetall is systematically filling technological gaps through joint ventures, for example, in satellite reconnaissance or with mixed reality specialists. For investors, this combination of acute order volume and strategic foresight signals that growth is well-founded and can extend beyond the current conflict. The share is currently available for EUR 1,506.50.

Almonty Industries – Invisible metal with strategic importance

While attention is often focused on lithium or rare earths, a quiet revolution is taking place in the tungsten market. The price of this high-performance metal has more than doubled this year. This underscores a fundamental shift. Decades of dependence on a single source are becoming a risk, but at the same time, they are opening up opportunities for new companies. Over 80% of the global supply still comes from China, whose policy of export restrictions and securing its own stocks is reshaping the market. For the Western high-tech and defense industries, the search for reliable alternatives is therefore becoming increasingly urgent.

This is precisely where Almonty Industries comes into play. The key to security of supply lies in a diversified production base outside China. A central component of this strategy is the Gentung Browns Lake project in Montana, USA. The Company is preparing to open this mine as early as 2026, the first such project in the United States in a decade. By purchasing projects that are already well advanced and have existing permits, Almonty is significantly shortening the path to production. The goal is not to undercut the world market price, but to create a stable, politically secure source for North American customers.

The outlook for tungsten remains robust, driven by its indispensability in semiconductors, electromobility, and defense technology. However, Almonty's approach is global. While Montana strengthens its strategic presence in North America, the Sangdong mine in South Korea, which will soon be operational, forms the new heart of production. Together with the established Panasqueira mine in Portugal, this creates a diversified triangle of supply options that makes Western supply chains more independent and resilient. This is about more than mining; it is about realigning critical infrastructure. The stock is currently trading at around USD 6.81, well below analysts' price targets of up to USD 12.

DroneShield – Why AI is revolutionizing drone defense

The true value of DroneShield lies in its technological architecture. Unlike many competitors who rely on simple jammers, the Company has opted for a clever, multi-layered approach. This is where AI comes into play. Special software analyzes data from radars, radio scanners, and cameras in real time, enabling it to identify drones with precision. The technology is scalable and can also be easily integrated into existing systems. It also has a "soft-kill" method that cuts the drones' radio connection. Compared to kinetic defense, meaning physical countermeasures, it poses a significantly lower risk in civilian environments such as airports or stadiums. The technology is constantly learning, which creates a high barrier to entry for competitors.

The fundamentals underpin the potential. The Company recently reported historically high quarterly revenue and has achieved operational profitability. DroneShield is strategically diversifying in a targeted manner. In addition to hardware, it is increasingly selling SaaS (Software-as-a-Service) solutions and cloud-based control systems that generate recurring revenue. This reduces its dependence on one-time sales to the military and opens up the growing civilian market. Geopolitical tensions and the ubiquity of drones in modern conflicts are further driving demand.

Despite its strong operating performance, the Company faces questions of trust. Extensive insider sales by management and communication mishaps have led to considerable volatility. DroneShield is now responding with an external review of its corporate governance structures and emphasizing transparency. For investors, it remains a balancing act: on the one hand, there is a technological leader in a growth market with clear profitability prospects. On the other hand, it remains to be seen whether the announced governance improvements can sustainably regain the lost trust. The share price is currently trading at AUD 1.835.

The short-term slump in the share price offers a strategic entry opportunity, as the robust fundamentals of the industry remain unchanged. Rheinmetall is transforming itself into a lean system provider and, with full order books, is benefiting from long-term rising defense budgets. Almonty Industries is addressing the critical dependence on China with its diversified mining portfolio for tungsten and creating resilient supply chains. DroneShield is a compelling technological market leader in drone defense with scalable AI solutions and profitable growth, but must overcome governance challenges. Despite volatile sentiment, the structural upward trend remains intact.