Explosive Mix! Multimillion-Dollar Orders, Lunar Missions and Takeover Buzz Drive Zefiro Methane, OHB and Steyr Motors

Zefiro: Full order books

Through its operating US subsidiary Plants & Goodwin, orphaned oil and gas wells are inspected, permanently plugged, and sites restored. Clients include government agencies and private companies. This is complemented by emissions measurements and, in the longer term, the development of tradable emissions credits. The aim is to get the underestimated climate killer methane under control. Many billions of US dollars are now available for this purpose in the United States.

The latest company announcement underscores a high, predictable order backlog. The Canadians put this at around USD 40 million from government-funded projects to plug orphaned oil and gas wells. Of this, around USD 4.9 million is expected to convert to revenue in the current quarter, with most of the remaining orders falling in 2027 and 2028. The contracts secure predictable revenue for the environmental services provider through June 2029.

The company created additional capacity by acquiring Viking Well Service's equipment, completed in May for USD 4.3 million. The company expects five additional rigs and expansion into five additional US states to enable approximately USD 10 million in additional annual revenue. Equipment utilisation, and in particular available crews, are crucial.

Another important growth driver is emerging around new energy infrastructure. Zefiro reports a growing number of private-sector orders and an increasing focus on energy projects for data centres. Here, time is money. In the non-calendar financial year, which ended in June, revenue rose 31.1% to USD 42.5 million. The gross margin improved from 23% to 29.2%. Adjusted EBITDA reached USD 3.8 million. However, the bottom line remained a loss. Start-up costs for the expanded fleet and new projects remain a short-term burden. 

Its position as a hidden champion in a market that experts estimate at around USD 500 billion enables the Canadians to achieve organic and inorganic growth. Experts at research firm GBC expect revenue and profits to grow significantly and recommend a Buy rating with a price target of CAD 2.15. The shares are currently trading at CAD 0.60, giving the company a market capitalisation of around CAD 65 million, equivalent to approximately USD 46 million.

OHB : Brief share price fireworks

OHB develops satellites, space systems and components for launch vehicles, alongside operations and data services. Most recently, the European Space Agency ESA commissioned a subsidiary of the space and technology group to carry out feasibility studies and preliminary designs for future lunar exploration missions. The aim is the development of infrastructure intended to enable scientific experiments and technology demonstrations on the lunar surface over the long term and support them.

The shares responded with a price jump of over 10 % at one point, although the gain quickly evaporated again. In the first half, OHB generated revenue of EUR 600.1 million. Total output, which includes other items such as changes in inventories, amounted to EUR 627.9 million. Adjusted EBITDA rose by 31 % to EUR 60.4 million, while the order backlog reached EUR 3.3 billion. For 2026, the Management Board expects total output of around EUR 1.4 billion and an adjusted EBITDA margin of 10.5 to 11 %.

OHB has industrial depth and demonstrates a strong technological position and expertise with the current contract award. Analysts see average upside of 50 % for the stock.

Steyr Motors: EUR 39 in cash on offer

Steyr Motors supplies specialised engines for military vehicles, boats and auxiliary power units. Additional opportunities come from unmanned systems, mobile power supply and the marine business expanded through the BUKH acquisition.

In the first half, revenue of EUR 22.8 million was only roughly at the previous year's level. Because of delayed public procurement and approval and acceptance processes, the company could not realise planned revenue of around EUR 10 million. EBIT was minus EUR 1.1 million, compared with plus EUR 3.4 million in the prior-year period, while the adjusted figure was just EUR 0.1 million.  In August, management therefore lowered its outlook for the current financial year to revenue growth of 15 to 25% and an EBIT margin of 8 to 12%.

The order backlog stands out positively, amounting to around EUR 310 million at the half-year mark and extending to 2030. It includes orders for military boats as well as a framework agreement with KNDS for around 500 engine-generator units through to 2034. The shares' performance in recent months has not reflected this medium-term potential.

Red Cat subsidiary SMOT Acquisition announced a voluntary cash offer of EUR 39 per share, a significant premium. The minimum acceptance threshold is 50% plus one Steyr share. Subject to regulatory approvals, the company expects the transaction to close in the first half of 2027. B&C Holding Österreich GmbH, which holds around 15% of Steyr's shares, has committed to accepting the takeover offer for all Steyr shares it holds.

Conclusion

The high order backlog of hidden champion Zefiro increases predictability. Further acquisitions would accelerate growth again. Analysts see significant share price potential. OHB has a broader industrial base and a first-class technological position and expertise. Is EUR 39 really enough for a Steyr share given the good medium-term outlook? It remains exciting.