Siemens Energy, Zefiro Methane, Centrus Energy: This Is Just the Beginning

Siemens Energy: Responding to High Energy Demand

Global electricity demand continues to rise. The need for infrastructure is particularly high in the areas of power generation and power grids. Siemens Energy is one of the leading companies in this sector. To focus more strongly on these specific business areas, the Group now plans to spin off its "Transformation of Industry" division as an independent company.

The industrial division manufactures, for example, hydrogen electrolysers, steam turbines, and specialized compressors. With approximately 17,000 employees, this division contributed EUR 5.7 billion, or about 15%, to the company's total revenue in fiscal year 2025. The decision to spin off the division is justified by the fact that, within the current corporate structure, it competes with the faster-growing core divisions for internal investment decisions. As an independent unit, the division should be able to operate more flexibly. The exact future ownership structure is still under review. Options include participation by external investors or financing via the capital market, although Siemens Energy plans to retain a minority stake on a permanent basis.

Analysts have largely viewed the plan positively, as it simplifies the Group's organizational structure. JPMorgan maintains its "Overweight" rating on the stock and sets a price target of EUR 245. The bank views the spin-off as beneficial for the company's long-term strategy.

Deutsche Bank also continues to recommend the stock as a "Buy" with a price target of EUR 210. The bank notes that the spin-off will allow Siemens Energy to focus entirely on the electrification markets. This is expected to have a positive impact on the company's medium-term profit margins.

Zefiro Methane: A New Billion-Dollar Market

Ironically, the AI boom could provide Zefiro Methane with an additional growth boost. The exploding demand for electricity from data centers is fueling a renaissance of natural gas in the US. New power plants are set to deliver the required reliable capacity. Just how sought-after US gas assets have become is illustrated by a potential billion-dollar deal: Gunvor is negotiating to acquire Haynesville assets valued at USD 1.2 to 1.5 billion. The growing electricity demand from AI data centers and new LNG export capacities are providing a tailwind. For Zefiro, this creates an interesting secondary market opportunity: the more the gas industry grows, the more important it becomes to clean up its legacy sites.

Zefiro does not extract fossil fuels itself. Through its subsidiary Plants & Goodwin, the company identifies, surveys, and plugs decommissioned and abandoned oil and gas wells, some of which have been leaking climate-damaging methane for decades. For suitable projects, the avoided emissions can also generate tradable emission credits. In this way, Zefiro combines a traditional remediation business with the climate protection market.

The potential is enormous. There are more than 2 million unplugged orphaned wells in the US, while the long-term remediation need is estimated at USD 400 to 600 billion. In addition, USD 4.7 billion has been allocated for such measures through the US Infrastructure Investment and Jobs Act (IIJA).

Zefiro is consistently expanding its position. Thanks to additional equipment, the company is now active in 13 US states. In collaboration with the Well Done Foundation, the company plans to plug 10 wells in Oklahoma initially, with 20 more scheduled for 2027. A contract in Ohio worth USD 19.6 million, running through 2029, provides additional planning certainty.

The figures demonstrate that this scaling strategy is working. In the first nine months of fiscal year 2026, revenue increased by approximately 36% to USD 33.2 million, while gross profit more than doubled to USD 10.7 million. Adjusted EBITDA reached USD 4.25 million. Zefiro is thus occupying a niche that has received little attention to date, but whose importance could continue to grow with the new US energy boom.

Centrus Energy: Billions for America's Nuclear Comeback

In the US, too, the national energy supply is to be gradually secured. For this reason, Ohio Governor Mike DeWine, along with representatives from the regional economic development agency, visited the Centrus Energy uranium enrichment facility in Piketon on August 24. The main focus was on Ohio's contribution to the national energy supply. The meeting centred on the ongoing expansion of the site, for which the company is making significant investments. The plans for this billion-dollar project were already presented in the fall of 2025. The physical and technical expansion is having a positive impact on the regional job market. Approximately 1,000 jobs are expected to be created during the construction phase, along with 300 new positions once the facility is operational. At the same time, 150 existing jobs will be secured. During the visit, company management emphasized that these measures are crucial for strengthening local industry and creating long-term career prospects.

Analysts' financial assessments currently paint a mixed picture. UBS recently raised its price target for the stock from USD 170 to USD 185 but maintains its overall rating at "Neutral." The reason cited is the strong financial results in the second quarter of 2026. Centrus generated revenue of just over USD 176 million and benefited from improved margins due to higher selling prices. In addition, the order backlog rose to approximately USD 4.5 billion due to new supply contracts.

The research firm Stifel, on the other hand, lowered its price target for the company from USD 246 to USD 216, but continues to recommend the stock as a "Buy". This is due to political budget risks. The US Department of Energy's current draft budget for 2027 lacks funding to continue operating a specific production facility. As a result, orders worth approximately USD 800 million could be lost. Nevertheless, Stifel also views the company's generally increasing number of long-term contracts positively.

The AI boom is sparking a new investment cycle in the energy sector. Siemens Energy is benefiting from the expansion of power grids and generation capacity and is sharpening its focus on electrification. Zefiro Methane is tapping into a billion-dollar market by remediating orphaned oil and gas wells. This market could gain even greater significance due to the renaissance of natural gas. Centrus Energy, in turn, represents the US nuclear comeback and the development of a domestic fuel supply.