DroneShield shares explode! Steyr Motors and CHAR Technologies benefit from acquisitions and optimism!

CHAR Technologies: Is the stock undervalued?

For Char Technologies, achieving a commercial breakthrough is at the top of the agenda for 2026. This creates clear upside potential for the stock. So far, the company is only valued at around CAD 35 million on the stock market. However, it should not stay that way, given its operational progress. The innovative HTP technology for the production of biogas and biochar is already being used in North America. It is set to be rolled out in Europe this year. CHAR Technologies has already signed a licensing agreement with a French partner.

It came as no surprise when CHAR Technologies CEO Andrew White pointed out at last week's IIF virtual investor conference that the company is in a crucial transition phase: from research and testing to commercialization. The first plant is already in commissioning and is expected to be up and running by the end of March 2026. White predicts that CHAR could generate around USD 130 million in project revenue with four plants, and around USD 42 million in free cash flow. Importantly, purchase agreements with a term of 20 years provide planning security.

Essentially, it is about renewable energy from wood residues from forestry. These are processed in a furnace without oxygen at very high temperatures. This results in two products: a solid carbon (biochar) for the steel industry and a gas that can be processed into biogas. White emphasizes that this gas business in particular is expected to drive revenue strongly because very attractive long-term contracts can be concluded in Canada, with prices tied to inflation rather than fluctuating gas prices. This makes it easier to finance the plants because banks and partners can count on fixed revenues. Added to this is a pragmatic approach: CHAR does not want to "build too big." Decentralized regional units reduce dependence on local wood waste supplies.

White also sees strong partners as a tailwind. ArcelorMittal has tested the technology and invested in it. In addition, the global corporation is an important customer for biochar in Ontario, Canada. The BMI Group is providing support not only as an investor, but also directly at the project level, contributing locations and construction expertise. In addition, cooperation with regional partners is intended to secure the supply of wood residues – a key issue in biomass projects. Another growth driver is the destruction of PFAS ("forever chemicals"). CHAR has already tested the process in everyday operations with a major US sewage sludge operator and sees this as a high-margin additional business. Overall, White's message is clear: execution is what counts now – and the next few months are precisely for that. If the plans are implemented, CHAR shares appear significantly undervalued.

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Steyr Motors: Launches M&A offensive

Analysts at NuWays had already pointed out that Steyr Motors needs one or two acquisitions in order to achieve its forecast for the current year. And now the supplier of special engines for military and civilian applications is kicking off its M&A activities. It is acquiring two Danish companies, BUKH A/S and SLC Ejendomme ApS.

BUKH A/S is an international specialist in SOLAS-certified engines for rescue and military boats (Safety of Life at Sea). By integrating the new subsidiary, founded in 1899, Steyr Motors aims to expand its range of engines from the current 120 to 300 hp to 24 to 700 hp in the future. This represents a strategic development step for the company towards becoming a broadly positioned, globally scalable supplier in the field of mission-critical marine applications. Steyr is also expanding its international distributor and service network and points to improved market access, particularly in Asia and South America. The Steyr announcement does not mention what SLC Ejendomme ApS does exactly. The company appears to be affiliated with BUKH.

The acquisition is to be financed primarily with cash. In addition, the seller will receive Steyr shares with a lock-up obligation as part of a capital increase in kind. Steyr emphasizes that it continues to have the financial leeway to invest in organic growth and undertake further acquisitions.

DroneShield: Drones over Dubai cause share price explosion

Even before Israel and the US attacked Iran over the weekend, DroneShield's share price had regained its former strength. Last week alone, the drone defense specialist's stock gained around 20%. On Monday, it rose by nearly 10%. The reason for this is likely to be developments in the Middle East. Images of drones in Dubai, Qatar, and other cities in the region were seen around the world. They show how much damage even inexpensive drones can cause. Defending against these unmanned aerial vehicles is DroneShield's business model.

Most recently, the company also reported a new order from Europe. A DroneShield partner has received six orders worth USD 21.7 million from Western military end customers. The contracts cover the delivery of portable drone defense systems, spare parts kits, and software subscriptions. DroneShield has the necessary inventory and plans to deliver within the current quarter.

The partner distributing DroneShield products is a wholly owned subsidiary of a billion-dollar global publicly traded company. Over the past seven years, orders worth a total of USD 17.8 million have been processed with this partner. Now, in one fell swoop, there are more.

DroneShield is clearly one of the beneficiaries of the conflict in the Middle East. Drone defense will continue to be a major issue. However, the challenge for DroneShield remains to keep pace with rapid technological developments as a medium-sized company. If CHAR Technologies does indeed achieve an operational breakthrough in the current year, then the stock appears to be far too cheap. This argues in favor of buying the security. Steyr Motors remains an exciting second-tier defense stock. However, acquisitions always entail integration risks. And Steyr is dependent on acquisitions to meet its forecasts.