Between bankruptcy and multiplication: Cleantech stocks Siemens Energy, Plug Power, and dynaCERT

dynaCERT: Cleantech for ships and trains soon?

"We have generated leads in the triple digits. Now we need to convince them of our products," said Bernd Krüper at the virtual IIF investor conference, summarizing dynaCERT's trade fair activities over the past few months. The German executive of the Canadian cleantech company appeared confident and optimistic about the market breakthrough of HydraGEN technology. In Australia, promising discussions are underway with interested parties from the mining sector, and things are also moving forward with a logistics company in Germany.

https://youtu.be/novEu4ekJjA?si=WwSPyDfwXZiblOyI

dynaCERT developed the HydraGEN technology to reduce pollutant emissions and fuel consumption in commercial vehicles. The hydrogen required is produced by a small electrolyser and fed into the combustion process via the engine compartment. This increases efficiency, provides more energy, and reduces consumption. As a result, less CO2 is produced, and fewer pollutants such as nitrogen oxides (NOx) are emitted. The patented system can be retrofitted into conventional diesel engines within a few hours. In the core market of trucks and other commercial vehicles, more than 2,000 devices have already been installed at customer sites. Work is currently underway to optimize mass production. In addition, dynaCERT is already working on solutions for diesel trains and small ships. Krüper also pointed to the possibilities for large ocean-going vessels – transport and cruise ships – although this would require more development time and resources.

If the leads generated in the year's second half bear fruit and lead to larger orders, the share price should also be able to break out of its sideways movement and move upwards. The share, which is also actively traded in Germany, is currently trading at EUR 0.09 – in October 2024, it was already at EUR 0.17. According to analysts at GBC Research, EUR 0.48 is even possible. The experts believe dynaCERT will generate revenue of CAD 21 million and earnings per share of CAD 0.01 by 2026.

Plug Power: Weak figures, but CFO remains hopeful

While analysts believe dynaCERT will be in the black next year, Plug Power has been far from that for years. In the first quarter of 2025, the former hydrogen hopeful was at least able to increase its revenue from USD 120.3 million to USD 133.7 million. However, the gross profit is already deep in the red. At least the gross margin improved from -132% to -55%. However, this still corresponds to a gross profit of USD -74 million. The net loss of USD 197 million continues to exceed revenue. To ensure that its cash reserves – which stood at USD 296 million at the end of Q1 – are not soon depleted, Plug Power launched an efficiency program in the first quarter of 2025. This is expected to save over USD 200 million annually. In conjunction with expected revenue growth, price increases, and disciplined inventory and investment management, Plug is forecasting an increase in cash and cash equivalents.

With the publication of its quarterly figures, Plug Power's share price fell to a new all-time low of USD 0.6994. The following day, CFO Paul Middleton surprised the market by purchasing 350,000 shares at a price of USD 0.7154 each. The Company stated that he is convinced of Plug's current strategy and future potential. Since then, however, the share price has only risen slightly.

Siemens Energy: Words of praise

Today, it is hard to believe that Siemens Energy was on the brink of bankruptcy around 18 months ago and had to be bailed out by the government at short notice. Since then, the share price has risen more than tenfold and is one of the stars of the DAX. Even the former problem child Siemens Gamesa seems to be getting back on track operationally. In the fossil fuels and grid sector, things are going brilliantly for Siemens Energy. Just yesterday, the rating agency S&P had words of praise for the Company. From the rating agency's perspective, Siemens Energy performed better than expected in the first half of fiscal year 2024/25. The increase in the order backlog to EUR 133 billion is also a positive indicator. Although S&P maintained its long-term rating of BBB- and its short-term rating of A-3, the outlook was raised from stable to positive. This increases the likelihood that Siemens Energy's rating will be upgraded in the next 24 months and that the Company's refinancing options will improve.

Yesterday, Siemens Energy shares traded above EUR 83, an all-time high. The Company is now worth more than EUR 66 billion on the stock market.

GBC analysts believe that dynaCERT shares could multiply in value. A major order would be a crucial step, likely triggering a breakout from its current sideways movement to the upside. Plug Power, on the other hand, is not a Buy. The Company is in the midst of restructuring, and it is impossible to predict how long its cash reserves will last. Siemens Energy, on the other hand, is a basic investment in the energy sector – albeit no longer a cheap one.