A bombshell, an all-time high, and a buying opportunity! Siemens Energy, Nordex, and Zefiro Methane

Zefiro Methane: Newcomer with Strong Potential

Zefiro Methane is a specialist in methane emission abatement—a niche segment that could prove highly attractive for investors. The addressable market is large, and margins are high. The Canadian company seals "orphaned" or abandoned oil and gas wells while simultaneously measuring methane leaks. This core business is complemented by the sale of emissions credits. For German investors, this business model may initially appear somewhat exotic, but globally, the market potential is enormous. After all, unsecured wells represent a major environmental problem worldwide. This creates an opportunity for Zefiro to significantly increase revenue and profits in the coming years.

Following the development phase, the business is now gaining momentum. In Ohio, 13 out of 37 wells were sealed as part of a major contract in the past quarter. This contributed to Zefiro increasing its revenue by more than 50% to USD 11 million between January and March 2026. This was the company's third quarter of fiscal year 2025/2026. The cost of remediating a single well is around USD 75,000. Zefiro can achieve gross margins of up to 90% on such projects. Accordingly, the company's results are expected to be significantly positive, with further details to be provided in the quarterly report.

Buying the stock ahead of the quarterly results could be worthwhile. The company is currently being discovered by European investors. A capital increase was recently placed in Europe, raising CAD 4.5 million gross. It was the company's first capital increase since its IPO two years ago.
As a result, investors buying now are not expected to face dilution risk. The company now has sufficient capital to advance its commercialization efforts. At the same time, the stock's liquidity is increasing. It is traded in Germany on the Frankfurt and Stuttgart exchanges and is seeing rising trading volumes.

Siemens Energy Unstoppable

Siemens Energy is simply unstoppable at the moment. It is breaking record after record, both operationally and on the stock market.

With the preliminary figures for the second quarter, the DAX-listed company raised its forecast for the current year last week. Siemens Energy now expects revenue growth of 14% to 16% (previously: 11% to 13%). The earnings margin before special items is expected to be between 10% and 12% (previously: between 9% and 11%). The company aims to reach the EUR 4 billion mark for profit after taxes. Previously, the target was between EUR 3 billion and EUR 4 billion.

The growth driver is the Grid Technologies division. Revenues there are expected to climb by 25% to 27%, rather than just 19% to 21%. The earnings margin before special items is also expected to be above the Group average at 18% to 20%.

Following the announcement, the stock surged to a new all-time high of around EUR 189. It seems only a matter of time before the EUR 200 mark is breached. Analysts are cheering, but they have traditionally lagged on their price targets for the stock. One example is Jefferies. The analysts continue to recommend Siemens Energy shares as a "Buy". However, the price target stands at EUR 164. The situation is even more striking at Bernstein. Analysts see the share's fair value at EUR 150. It is unclear why they rate it as "Outperform" given a downside potential of over 15%.

Nordex: Strong Q1

Business is also going strong at Nordex. The wind turbine manufacturer increased revenue by 11% to EUR 1.6 billion in the first quarter of 2026. EBITDA surged by 64% to EUR 130.7 million, and net income rose from EUR 7.9 million to EUR 53.6 million.

Nordex CEO José Luis Blanco expressed his satisfaction: "The first quarter developed as expected and marks a positive start to the new year. We once again delivered a solid operating performance, achieved further margin improvements, and started the year with a strong financial position. The sustained demand from our core markets, as well as an EBITDA margin of over 8% already achieved in the first quarter, underscores that we are well on track to meet our forecast for this year." Nordex aims to generate revenue of between EUR 8.2 billion and EUR 9.0 billion in the current year. The company aims to achieve an EBITDA margin of 8% to 11%.

As expected by analysts, new business was slightly below the previous year's level. For the first quarter of 2026, Nordex reported order intake of 1,869 MW (Q1/2025: 2,182 MW). The total order value reached EUR 1.7 billion (Q1/2025: EUR 1.9 billion). The customers are from 13 different countries. The average selling price per MW in EUR increased from EUR 0.87 million to 0.91 million.

The stock initially reacted yesterday with a price jump of over 10% to over EUR 50. However, it was unable to maintain this level and was trading at EUR 46.70 in the afternoon.

Exciting opportunities for returns are constantly emerging in the energy sector. Siemens Energy is on a fantastic upward trend. However, investor expectations and the stock's downside potential are already very high. The situation is similar for Nordex. In contrast, Zefiro Methane is a fresh newcomer. Rising revenues and profits should soon bring the stock out of its niche.