Rheinmetall Stock And 2 Infrastructure Picks For Energy Security Exposure

The latest escalation in the Russia Ukraine conflict, including strikes on energy infrastructure and oil above $90 a barrel, is reshaping how investors think about global infrastructure and construction stocks. Higher geopolitical risk, pressure on energy supply, and renewed focus on critical assets can change funding priorities, project timing and risk appetite. From our Global Infrastructure and Construction Companies screener, this article looks at 3 stocks that appear positively exposed to the current news backdrop. It is intended to help you judge whether these businesses might fit, or clash, with the role you want infrastructure to play in your portfolio.

Atlas Copco (OM:ATCO A)

Overview: Atlas Copco is a Sweden based industrial group that supplies compressors, vacuum pumps, power tools, machine vision and mobile power equipment used in factories, infrastructure projects and energy facilities around the world.

Operations: Atlas Copco generates most of its revenue from Compressor Technique at about SEK 76.5b, followed by Vacuum Technique at SEK 37.8b, Power Technique at SEK 30.3b and Industrial Technique at SEK 26.2b, with a small negative segment adjustment of SEK 0.9b.

Market Cap: SEK 919.2b

Atlas Copco stands out in this higher risk geopolitical backdrop because its equipment and services are used in energy efficient, mission critical infrastructure, from semiconductor fabs to civil engineering and energy projects. Record Q2 2026 orders and high quality earnings, supported by a growing, higher margin service business, provide a degree of resilience even as large equipment orders have been more uneven and currency moves or potential tariffs could affect margins. The rich P/E multiple and a modest gap to analyst price targets mean investors may pay a premium for this business profile, which includes reported strong returns on equity, solid dividend payouts and a role as a key supplier to governments and industrial customers when they upgrade and harden key assets.

Atlas Copco’s rich P/E and resilient service revenue raise a clear question: are you paying up for quality or missing what the DCF valuation analysis for Atlas Copco reveals about where the real risk sits?

Rheinmetall (XTRA:RHM)

Overview: Rheinmetall is a German defense and security company that supplies armored vehicles, weapons and ammunition, air defense and sensor systems, and electronic solutions used by armed forces and civil security agencies around the world.

Operations: Rheinmetall generates most of its revenue from Vehicle Systems at about €5.0b and Weapon and Ammunition at about €3.5b, with a positive segment adjustment of €2.7b and a negative contribution of €1.2b from Others/Consolidation.

Market Cap: €45.8b

Rheinmetall sits at the center of rising demand for air defense, artillery ammunition and protected vehicles as governments react to drone and missile attacks, energy infrastructure strikes and wider NATO security concerns. The company has been reporting high quality earnings and strong revenue and earnings growth. Recent agreements to co produce ATACMS missiles in Europe point to deeper ties with key allies. At the same time, the cancellation of Germany’s F126 frigate program shows how exposed it is to big contract decisions and political risk. With the stock recently underperforming the German market despite analyst targets that imply materially higher prices, the key question is whether current geopolitical tensions and a growing order book are fully reflected in Rheinmetall’s valuation and risk profile.

Rheinmetall’s rising orders and deeper defense ties hint at a story that the market may not be fully pricing yet. The full valuation picture in the analysis report for Rheinmetall could reveal what is quietly driving that gap.

Andritz (WBAG:ANDR)

Overview: Andritz is an Austrian engineering group that designs and services large scale machinery and plants for pulp and paper, metals processing, hydropower and environmental and energy projects across global industrial and infrastructure markets.

Operations: Andritz generates most of its revenue from Pulp & Paper at about €3.0b, followed by Hydro Power at about €1.8b, Metals at about €1.7b and Environment & Energy at about €1.5b.

Market Cap: €7.2b

Andritz offers a mix of exposure to energy transition, water security and critical industrial capacity at a time when governments are rethinking infrastructure resilience after fresh shocks to oil supply and regional security. A record order backlog, growing service revenue and reaffirmed 2026 guidance point to visibility that many capital goods peers lack. At the same time, the stock trades on a P/E below sector averages and sits not far from analyst targets that suggest it may be reasonably priced. The flip side is reliance on cyclical pulp, metals and environmental spending, an unstable dividend record and funding entirely through external borrowing. The key question is how these strengths and pressure points balance out as projects tied to higher energy prices and security concerns move from discussion to execution.

Andritz’s record backlog and below sector P/E hint at a story investors may be underrating. The full narrative for Andritz pulls together how service revenue, funding and project timing could quietly shift that balance.

The three stocks covered here are only a starting point, and the full Global Infrastructure and Construction Companies screener highlights 31 more companies with equally compelling infrastructure and construction narratives across Europe. Use Simply Wall St to identify and analyze the exact catalysts, balance sheet strength and project exposure that matter to you so you can focus on the highest conviction opportunities in this theme.

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Seeking Alternatives Before The Window Closes?

Fresh stock ideas can move quickly, and early momentum may be harder to access once prices start breaking out and headlines begin to focus on them. Explore these under the radar lists before they become widely followed and consider whether they fit your strategy.

• Spot potential trend leaders by scanning the 54 AI infrastructure stocks, which includes companies involved in building the hardware backbone that supports AI workloads while broader market attention is elsewhere.
• Target potential income streams by checking the 469 dividend fortresses, which is built around companies aiming to maintain dividend payouts even when overall sentiment is weaker.
• Find underfollowed growth-oriented stories by reviewing the curated 510 high quality undiscovered gems, which remain less widely watched for now and may receive more attention over time.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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