The market treats Rheinmetall as the clear scarcity winner in ammunition, but that scarcity is no longer as secure as current valuation implies. The market has largely overlooked this shift, as the German cartel office’s approval of the Nammo/Diehl JV was overshadowed by the FY25 earnings release. In our estimates, nearly half of 2030 EBIT comes from Weapons & Ammunition, with around a quarter of group EBIT linked to 155mm artillery ammunition alone, precisely the area where Germany is now enabling a second supplier. While Rheinmetall should clearly retain the scale advantage through 2030, this increasingly becomes a terminal value issue for 2030+, as competition starts to enter the group’s most profitable earnings pool. Like for Rheinmetall’s peers, the debate should shift away from near-term growth, which remains well supported by backlog visibility, toward the durability of margins and cash flows beyond the current rearmament cycle. We lower our price target to EUR 1,500 (from 1,700) to reflect higher long-term competitive pressure. HOLD. The full update can be downloaded under https://research-hub.de/companies/rheinmetall-ag

TAKKT’s FY25 results showed no major surprises after their prelims, but a weak macroeconomic environment continues to weigh on performance. Early ‘26 trading remained below prior-year levels, reflecting a sluggish recovery and a weak Q4 25 exit. While some stabilization is visible in Industrial & Packaging Europe and Office Furniture & Displays, Foodservices (especially in the US) remains a key drag. Management’s wide ‘26 guidance range signals ongoing uncertainty, with restructuring efforts and strategic exits further limiting near-term growth and margins. Our estimates lean toward the lower end, with 5% yoy sales decline, modest profitability (incl. EUR ~12m one-off effects), and close to break-even free cash flow expected. Overall, ‘26 is seen as a transition year, with recovery and meaningful upside likely delayed until ‘27 despite continued efficiency initiatives. Nonetheless, we reiterate BUY with adjusted PT of EUR 4.50 (prev. EUR 5.50) as we see a positive risk/return profile. The full update can be downloaded under https://research-hub.de/companies/takkt-ag

WashTec delivered strong FY25 results with record revenue of EUR 498.6m (+4.6% yoy) and EBIT growth of 7.5% to EUR 48.9m, lifting margins to 9.8%. Performance was driven by operating leverage, pricing discipline, and efficiency gains, alongside robust free cash flow of ~EUR 42m supporting a higher dividend. While Q4 showed slight declines due to a high prior-year base, order intake remained strong, boosting backlog (+9% yoy). Growth was led by Service and Consumables, raising recurring revenue share to 45.1%, enhancing resilience and margins. With solid backlog visibility and continued cash generation, management expects further profitable growth in FY26 despite macro uncertainties. We therefore reiterate our BUY rating with unchanged PT of EUR 55.00. The full update can be downloaded under https://research-hub.de/companies/washtec-ag

Multitude has published its audited FY25 results, confirming the previously released preliminary figures and thereby a strong operational performance. Net profit came in at EUR 26.6m (+31.7% yoy), slightly above guidance, while revenues remained broadly stable at EUR 256.9m. Importantly, asset quality improved further, with impairments declining by 15.4% yoy despite continued loan book growth. In addition, the company announced a dividend of EUR 0.55 per share (+25% yoy / 10% dividend yield), clearly underlining its strong capital generation and shareholder focus. Management reiterated its FY26 net profit target of EUR 30m. Following only minor estimate adjustments and unchanged investment case, we reiterate our BUY rating with unchanged PT of EUR 14.40. The full update can be downloaded under https://research-hub.de/companies/multitude-ag

The recent selloff looks like an attractive entry point into one of the few European defense names with genuinely long duration visibility. Unlike many land systems peers, TKMS is exposed to naval programmes that extend well into the 2040s, supported by c. EUR 18.6bn of backlog and further upside from major submarine campaigns. As legacy contracts roll off, margins should also improve, making the current weakness look more like a buying opportunity than a deterioration in fundamentals. While the derating in land focused peers may be justified in our view, applying the same logic to TKMS’s very different business model looks misplaced. We reiterate BUY with a EUR 125.00 price target; political and export licensing risk remains the key risk. The full update can be downloaded under https://research-hub.de/companies/tkms-ag-co-kgaa

Mister Spex’s FY25 results confirm its SpexFocus transformation is improving profitability through cost discipline, despite a deliberate 16% revenue decline to EUR 181.5m. The company reduced promotions and exited unprofitable markets, leading to a 27% drop in active customers but significantly higher earnings quality. Gross margin rose to 55.6%, EBIT improved to minus EUR 26.3m, and operating cash flow turned positive. Growth is shifting toward higher-margin prescription glasses and retail stores, supported by rising average order value. FY26 will remain transitional, with flat to declining revenue and continued restructuring costs, but improving margins signal progress. Overall, Mister Spex is prioritizing sustainable profitability over scale, requiring investor patience. We reiterate to BUY with unchanged PT of EUR 3.40. The full update can be downloaded under https://research-hub.de/companies/mister-spex-se

EDAG delivered better than expected FY25 results, supported by a stronger Q4 and improving cost efficiency. While revenue declined in a difficult automotive environment, profitability developed better than feared, reflecting early restructuring benefits and tighter cost control. FY25 was clearly a transition year towards a leaner and more resilient cost base, even as automotive OEMs continued to reduce and internalise R&D spending. At the same time, diversification continued to gain traction, with defence emerging as the key growth driver and industrial end markets providing additional support. This is gradually reducing reliance on automotive, even though the segment still dominates the earnings base. Looking ahead, EDAG expects a stabilising environment with improving profitability driven by restructuring savings, disciplined execution, and a higher share of non-automotive business. While automotive headwinds persist in the near term, the medium-term outlook is supported by diversification and a potential cyclical recovery in R&D spending. Therefore, we reiterate our BUY rating with an unchanged PT of EUR 6.50, implying an upside of 64%. The full update can be downloaded under https://research-hub.de/companies/edag-engineering-group-ag

The final FY25 figures add only little beyond the prelims announced in February. Since then, the shares dropped >13%, after 2026 revenue guidance of EUR 2,750m came in below market expectations. Our key question remains whether today’s elevated growth can be sustained beyond 2030, in a sector that typically benefits from highly plannable revenue streams. While Hensoldt offers strong visibility through the current rearmament cycle to 2030, we believe consensus is already pricing in too much durability beyond that point, effectively inflating terminal value assumptions without sufficient proof. Around 10% of management’s EUR 6bn 2030 revenue ambition is tied to M&A, while consensus already appears to assume organic revenue growth to c.EUR 5.7bn, which looks too aggressive in our view. Software defined defence could support a more recurring revenue profile over time but is still only expected to reach c.8% of sales by 2030. We therefore continue to view the current setup as more cycle driven than structurally underpinned and reiterate our SELL rating with a EUR 57.00 price target. The full update can be downloaded under https://research-hub.de/companies/hensoldt-ag

The upcoming opening of Terminal 3 on April 22 marks a strategic shift for Frankfurt Airport, as airlines relocate to the modern 20m-passenger facility, allowing Lufthansa to consolidate its operations within the 60m-capacity Terminal 1. However, Fraport’s indication to mothball Terminal 2 until 2034/2035 - following an estimated EUR 1.5bn renovation - suggests a conservative view on long-term passenger growth. It could also serve as a tactical move to block a "Munich-style" joint venture that would force Fraport to share lucrative non-aviation revenues with Lufthansa. While this delay supports the new dividend policy by deferring heavy capex and improving mid-term cash flow, the tacit admission that 2019 traffic levels may not be structurally exceeded for another decade reinforces a cautious investment outlook. We maintain our SELL rating with a EUR 62.00 price target. The full update can be downloaded under https://research-hub.de/companies/fraport-ag

Amadeus Fire reported FY25 results confirming a deep cyclical trough, with revenue falling 16.8% yoy to EUR 363.6m and operating EBITA dropping to EUR 13.7m. Adjusted for EUR 6.1m in restructuring costs, EBITA reached EUR ~20m, reflecting the severe impact of German economic stagnation on both Personnel Services and Training segments. Despite the first net loss in decades at EUR -2.2m, the group has successfully reset its cost base and pivoted toward scalable digital training via the acquisitions of Masterplan and eduBITES. While recovery visibility remains limited for H1 2026, the leaner organization and shift toward recurring SaaS-based revenue support a significant earnings rebound by 2027. We maintain our BUY rating but adjust our PT to EUR 70.00 (prev. 80.00). The full update can be downloaded under https://research-hub.de/companies/amadeus-fire-ag