Mercedes-Benz searches, Graphano Energy finds, Siemens Energy uses: The three stocks for the next phase of energy storage

Mercedes-Benz – Electric offensive in turbulent times

The Stuttgart-based company is putting all its eggs in one basket and has launched one of the most ambitious electric offensives in the industry. By 2027, no fewer than 15 pure electric models are set to hit the market, ranging from luxurious compact sedans to sporty AMG models and family-friendly SUVs. From then on, Mercedes also plans to design all new vehicle platforms exclusively for electric drives. A pioneer of this strategy is the new electric CLA, which scores with a range of up to 792 km and ultra-fast 320 kW charging. At the same time, Mercedes is working on future technologies such as bidirectional charging to turn the electric vehicle into a mobile power storage device for the home.

The latest quarterly figures paint a mixed picture. While adjusted EBIT fell by 17% year-on-year to EUR 2.1 billion, the result exceeded the expectations of many market observers. Weak demand in China and the burden of US tariffs in particular weighed on margins. However, the robust free cash flow of EUR 1.4 billion in the quarter stands out positively. In addition, the launch of a EUR 2 billion share buyback program signals management's confidence in its own financial strength.

In the background, CEO Ola Källenius is implementing a remarkable change in strategy. The previously touted focus on pure luxury models is being abandoned in favor of a broader orientation. In the future, Mercedes intends to offer premium vehicles in all price ranges again in order to appeal to a larger customer group. Analysts welcome this pragmatic shift, as it could increase resilience in a challenging market environment. The combination of an electric model offensive and broader market integration should stabilize the share price for the coming years. The share is currently available for EUR 57.35.

Graphano Energy – In the fast lane in the graphite sector

Graphano Energy has positioned itself in the mining-rich region of Quebec to benefit from the growing demand for battery raw materials. Instead of focusing on a single project, the Company is diversifying its portfolio. It manages a whole range of promising graphite deposits. A major advantage here is its location in an established mining region. This means that it can draw on existing infrastructure and experienced specialists, which makes operations much easier. Perhaps the most significant asset, which should not be underestimated, is the immediate proximity to the only active graphite processing plant in North America, which can be shared. This is operated by its neighbor Northern Graphite. This strategic proximity opens up massive opportunities for future development.

The Company's latest announcements underscore the exploration potential. In mid-October, Graphano presented the final drill results from the Black Pearl project, which were consistently positive. Of particular note is the BP25-06 drill hole, which intersected a 12.25 m zone grading 4.81% graphite carbon (Cg) at a depth of only about 25 m. These results confirm that the conductive zones previously identified by geophysics are indeed due to graphite mineralization. This improves the understanding of the geology and provides reliable target areas for further action.

For the outlook, this means concrete growth potential. The successful drilling campaign provides the basis for the next steps. To further develop this potential, management announced a non-supported private placement at the beginning of November. The expected proceeds of up to CAD 375,000 will be used to finance an airborne geophysical survey program on the Black Pearl property. This measure aims to identify new anomalies in the large concession area and thus systematically expand the resource base. The share is currently trading at CAD 0.18.

Siemens Energy – Strong tailwind in the energy market

Demand for gas turbines and smart grid technology continues unabated, and Siemens Energy is benefiting greatly from this. The Company is steaming ahead into the future and closed its fourth quarter with an unprecedented order backlog of a whopping EUR 138 billion. Converted, this means that for every euro of revenue, a good euro and a half in new orders is coming in. In concrete terms, this means that 85% of the revenue expected for fiscal year 2026 and 60% for 2027 are already covered by existing orders. These full order books offer the Company exceptional planning security for the coming years.

The core gas turbine business continues to run at full speed. In the last quarter, 5 gigawatts (GW) of capacity were sold, and reservation agreements added another 11 GW, resulting in a total of 54 GW in commitments. In response to this demand pressure, Siemens Energy plans to expand its production capacities in a targeted manner. At the same time, manufacturing will be regionalized to protect against trade barriers and higher customs costs. These strategic steps are expected to lead to higher productivity, economies of scale, and a noticeable improvement in margins in the coming years.

This positive operational development is reflected in the financial results. The balance sheet has been strengthened, enabling management to propose a dividend payment of EUR 0.70 per share for fiscal year 2025. This decision underscores confidence in the Company's continued business strength. While the offshore wind market, particularly in the US, continues to pose challenges, this sector is receiving substantial support in the European Union. Overall, the positive momentum from the strong areas far outweighs the remaining weaknesses. The share price is currently trading at EUR 105.55.

Energy storage remains a key growth driver, fueled by the global energy transition. Mercedes-Benz is accelerating with a broad-based electric offensive and strong cash reserves. Graphano Energy is systematically tapping into valuable graphite deposits with strategic drilling in Quebec. Siemens Energy is benefiting from a record order backlog that promises long-term planning security and margin growth.