Siemens Energy and DroneShield in the Spotlight - HPQ Silicon Set to Take Off?

Siemens Energy: The Spectacular Comeback

Siemens Energy shares have emerged in recent months as a true "phoenix rising from the ashes." With a remarkable price increase since the start of the year—more than 100% over the past twelve months—the company has impressively refuted the skepticism of many critics. Strong quarterly results and an upward revision of the annual forecast in mid-May underscore management's optimistic outlook. The free cash flow outlook for 2026 was "nearly doubled," from the previous range of EUR 4 to 5 billion to now around EUR 8 billion. In particular, the well-filled order books—which, with a record order backlog of EUR 154 billion, include far-reaching contracts extending well into the 2030s—ensure robust planning security. Most recently, the Group also secured another major order in Asia. The Mai-Liao Power Project in Taiwan involves not only technology delivery but also long-term service contracts that ensure predictable cash flows. This is exactly the kind of high-margin business that CEO Christian Bruch is consistently steering the group toward.

The share buyback program is also in full swing. A first tranche of EUR 2 billion has been completed, and another of EUR 3 billion has begun. This is part of a total program running through 2028 worth up to EUR 6 billion. Deutsche Bank has raised its price target to EUR 200. At the same time, an activist investor is applying pressure and demanding a spin-off of Siemens Gamesa, the wind subsidiary whose ongoing losses are weighing on the overall valuation.

At the current price level, the stock is struggling around the EUR 170 mark against key support levels, though the recent pullback should be viewed in the context of sector-wide weakness, as RWE, E.ON, and Iberdrola have also been under pressure recently. Market observers, however, may view this merely as temporary profit-taking following the strong rally. The median analyst price target of around EUR 186 also leaves some room for upside. The next concrete catalyst is likely to be the Q3 results on August 5, 2026, barring any major developments in the broader market beforehand. Despite an elevated valuation (P/E ratio above 70), Siemens Energy remains a core holding for investors focused on the long-term energy transition theme, supported by a still intact medium-term share price uptrend.

DroneShield: A Volatile Stock from the Security Sector

The picture is even more turbulent for DroneShield. Although the company operates in an extremely high-growth market and is benefiting from massive tailwinds from rising geopolitical tensions, the stock has recently experienced a significant correction. After reaching impressive highs, the stock rose seemingly out of nowhere from under EUR 0.50 to a peak of nearly EUR 4; it is currently trading in a volatile range between EUR 1.80 and EUR 2.20. The back-and-forth has been triggered, among other things, by reports of investigations by the Australian financial regulator ASIC into corporate disclosures and share trading dating back to November 2025, as well as a change in leadership, with Angus Bean taking over as CEO and Managing Director from Oleg Vornik in early April. At the annual general meeting on May 29, Hamish McLennan is also expected to be confirmed as the new Chairman.

Fundamentally, however, DroneShield tells an interesting story. In the first quarter of 2026, revenue grew by 121% to AUD 74.1 million, while customer payments surged by as much as 360%. As of April, firm revenue commitments for the current year totalled AUD 154.8 million. The company holds AUD 222.8 million in cash and is virtually debt-free.

A current deployment and partnership in the US adds further lustre to the company, as DroneShield is installing a multi-component system to monitor low-altitude airspace in the Kansas City metropolitan area in the run-up to the 2026 World Cup. Counter-UAS is no longer purely a military issue; major events, city centers, and public safety situations are becoming a growing civilian market. Kansas City is thus more than just a single contract: it is a visible showcase of the product's market strength and brand image. Management is targeting annual revenue of AUD 1 billion by 2030 and aims to consistently expand the share of recurring SaaS revenue. Those who can withstand the current price fluctuations may find an extremely interesting stock here in the modern defence sector. Based on technical analysis, the potential is certainly above EUR 4 if the stock breaks through the EUR 2.60–2.70 zone. However, investors should always take volatility into account with this stock, as it can be unforgiving and cause the share price to swing by 30% or more seemingly out of nowhere. This is certainly not for the faint-hearted.

Hardware and Batteries: Technological Pioneers

Where advanced security technologies and defence systems like those from DroneShield are deployed, an enormous amount of energy and extremely reliable hardware are required behind the scenes. Modern drones and complex autonomous systems are dependent on lightweight, long-lasting, and state-of-the-art batteries. It is precisely at this critical juncture that innovative suppliers are positioning themselves; with entirely new material concepts, they are significantly pushing the performance limits of existing energy storage solutions, thereby making tomorrow's hardware possible in the first place.

HPQ Silicon: A Quiet Contender Is Emerging

A good example of a technology developer is HPQ Silicon, a company currently making very tangible progress in the field of battery materials. Recently, HPQ secured its very first order for battery packs from a European drone manufacturer, whose name has not yet been disclosed, through its strategic partner Novacium. This order, designed specifically for drones with exceptionally long endurance, utilizes the company's high-performance in-house GEN4 cells. In the delivered configuration, these battery packs are expected to achieve a remarkable capacity of 10,000 to 13,400 milliampere-hours (mAh). Even before this, the GEN4 21700 cylindrical cells had demonstrated capacities of up to 7,030 mAh and an extremely high energy density of 330.9 watt-hours per kilogram (Wh/kg) in rigorous testing. It all sounds very technical, but anyone familiar with the subject would applaud this. Especially for drones, it is important that these battery packs have the highest possible power density, weigh little, and can supply the drones with power for a long time.

At the end of April, the company followed up immediately and presented yet more technological results. A specially developed drone battery pack with a semi-solid electrolyte achieved a remarkable energy density of 395 Wh/kg at the pack level, weighing just 1,160 grams. This represents a significant performance increase of an estimated 23 to 36% compared to benchmark drone batteries currently available on the market.

However, the course is set for expansion not only in Europe but also in Asia. In mid-May, Novacium, in which HPQ holds a stake, signed a far-reaching, albeit non-binding, letter of intent (LOI) with GH Technologies at the China International Battery Fair. This agreement aims at the future supply of GEN4 lithium-ion cells in the 18650 and 21700 formats for the Asia-Pacific market. This step is significant and of enormous importance, as the Asia-Pacific region accounts for more than 57% of global demand for cylindrical lithium-ion cells. For the large North American market, HPQ also holds the exclusive marketing rights to these promising technologies, which is encouraging.

Looking at the current chart, HPQ Silicon's stock could really pick up momentum if it breaks out to the upside. Currently, the stock is very well supported on the downside by a horizontal line at its current level between CAD 0.17 and CAD 0.18. A decisive "Buy" signal could already emerge if the stock breaks above CAD 0.19. After that, the price would have relatively clear sailing and could quickly rise to CAD 0.24, where a significant previous high awaits. After successfully clearing this hurdle, the journey could even continue in the medium term toward the psychologically important CAD 0.30 mark. So there is plenty of potential for the stock. At the current level, downside risk could be limited with a suitable stop.

The stock market currently offers interesting opportunities, provided one skillfully filters out the right stocks and also has good timing for entry. Siemens Energy, for example, impressively demonstrates what a successful turnaround in large-scale plant engineering can look like; the doubled free cash flow outlook, the record order backlog, and the ongoing share buyback program underscore its operational strength, even if the "Gamesa shadow" and the ambitious valuation call for a certain degree of caution. DroneShield remains a key player in the increasingly important security sector despite ASIC investigations, leadership changes, and short-term price turbulence. Its deployment at the World Cup in Kansas City and explosive revenue growth speak for themselves. HPQ Silicon presents itself as a technological hidden gem amid a major megatrend. The company consistently delivers strong news that underscores the potential of new battery materials. If the chart now delivers the long-awaited breakout signal in the coming weeks, HPQ Silicon may be on the verge of an extremely positive revaluation by the market as a whole.