Take advantage of the price dip among industry leaders from the US and Germany: Almonty Industries, Rheinmetall, and RTX

Almonty Industries - First major milestone reached in Sangdong

On December 16, Almonty Industries achieved a significant operational milestone. The first ore from the Sangdong mine in South Korea was deposited into the ROM stockpile, marking the concrete transition from development to active production. For the Company, this is long-awaited and important proof that the processes are working. The plant now awaits final commissioning of the processing circuits. This progress is not only a project milestone, but also underscores Sangdong's strategic role in supplying the West with the critical metal, tungsten.

Almonty's position is based on three key pillars. The first is the flagship Sangdong, a world-class deposit of exceptional quality and very long life. Once ramped up, the mine is expected to supply the majority of non-Chinese tungsten production. There is also the possibility of mining the molybdenum deposit. The second pillar is the targeted expansion into strategic regions. With the acquisition of an advanced project in Montana, USA, the Company is securing an early foothold in a key region. Existing permits and infrastructure there enable a comparatively quick and capital-efficient start. Finally, there is the Panasqueira mine in Portugal, which is already in production and is also being prepared for expansion.

The current market situation plays into Almonty's hands. For about six months, the price of tungsten in China has been higher than in the West. This is an unusual phenomenon that points to structural shortages. However, Almonty has always based its business model on conservative price assumptions that are well below today's levels. The Company emphasizes that it does not need high prices to operate profitably. However, if the current market bottlenecks persist, this defensive approach could lead to above-average margins. For investors, this is one of the few pure plays on tungsten outside China. The stock is currently trading at USD 8.46, well below its price targets of up to USD 12.

Rheinmetall – A pure defense company in the fast lane

Rheinmetall is consolidating its position as Germany's leading defense contractor through consistent focus and large order intake. In December 2025, the German Armed Forces significantly strengthened its Puma tank fleet and, through a joint venture with KNDS, ordered the delivery of 200 new armored personnel carriers worth around EUR 4.2 billion. At the same time, the newly founded joint venture Rheinmetall ICEYE Space Solutions secured a billion-euro order in the field of space-based radar reconnaissance for the German Armed Forces. Also in December, a new hybrid plant went into operation in Szeged, Hungary, which manufactures both civilian and military components. This news underscores the broad technological base and strong demand.

The Group's strategic focus was further sharpened in December with the decision to sell the civilian Power Systems division. The goal? To focus the business entirely on the defense sector. The figures after nine months speak for themselves. Revenue climbed by a whopping 19.9% to EUR 7.5 billion, with the main driver being the defense division. Operating profit also rose sharply, by 18.4% to EUR 835 million. The Group is therefore confident about the full financial year. It expects pro forma sales growth of 30-35%. Even the operating margin is expected to reach an impressive 18.5-19.0%. Free cash flow in the defense sector is exceeding expectations.

The portfolio is growing steadily through acquisitions and partnerships. In December, Rheinmetall acquired Muni Berka GmbH to massively expand ammunition storage capacity and gain expertise in the field of explosives. At the same time, a strategic partnership was formed with mixed reality specialist Varjo to improve training simulators. These steps build on a series of other orders placed in December, including the modernization of the Army Combat Training Center, a major order for Skyranger 30 air defense systems for the Netherlands, and further call-offs for tank ammunition and soldier equipment. They demonstrate a group that systematically serves all areas of modern land and air defense. The stock is currently trading at EUR 1,555.50.

RTX – Why the US defense giant remains at the top

RTX plays a dominant role in the premier league of US defense contractors. The Company owes its number one position not to a single product, but to its unique breadth and technological depth. While others focus on specific platforms, RTX, with its subsidiaries Raytheon, Pratt & Whitney, and Collins Aerospace, covers the entire value chain, from sensor-based guidance systems to engines and avionics. This integrated expertise, particularly in missile defense and sensor systems, makes it an indispensable partner to the Pentagon and a global technology leader in key areas.

RTX's financial stability is underpinned by an unprecedented order backlog of over USD 250 billion, a significant portion of which stems from the defense business. The ratio of new orders to revenue consistently exceeds 1, signaling sustained demand and securing capacity utilization for years. For investors, this huge order backlog means rare planning security and, at the same time, significantly protects the business model from economic fluctuations or short-term budget discussions.

Currently, two strong drivers are fueling growth: global rearmament and the ongoing boom in civil aviation. In addition to large orders for Patriot systems in Europe, the divisions are benefiting from rising maintenance demand from airlines and new engine programs. Geopolitical tensions are reinforcing this trend, but RTX is not purely cyclical. The clever interlinking of military and civil business ensures robustness and opens up long-term sources of revenue beyond current conflicts. Unlike the other two companies, the stock is trading close to its highs at USD 182.01.

The recent price corrections offer a strategic entry point to benefit from the megatrends of critical raw materials and defense. Almonty Industries is proving its successful transition to a major producer with its first ore extraction in Sangdong, positioning itself as a key supplier of tungsten. Rheinmetall is consolidating its leading position in Europe as a pure defense company with record orders and strong growth. With its uniquely broad portfolio and billions in confirmed orders, RTX remains an indispensable technology leader and offers predictable stability. The current dip presents a concrete opportunity, particularly for Almonty and Rheinmetall.