What If Diesel Stays Longer Than Expected? dynaCERT's Bridge Technology, Deutz and Renk in Focus

dynaCERT: Efficiency Advantages as a Key Strength

With HydraGEN™, the Canadian company has brought a smart retrofit solution for existing diesel fleets to the market. This solution offers several advantages. First and foremost, fuel and emissions savings are among the key benefits. Another advantage is that users do not have to replace either the engine or the vehicle. This keeps investment costs manageable.

The company focuses on heavy-duty transportation, mining and construction, oil and gas, port operations, and stationary power generation. Applications with high operating hours and high diesel consumption are particularly relevant to this strategy. Looking ahead, combining hardware and data opens up exciting, potentially highly scalable opportunities to expand the business model. With HydraLytica, fuel consumption and emissions can be measured and documented. In addition, measurable CO₂ savings could enable emissions-credit trading.

dynaCERT itself has prioritized converting commercial discussions into concrete agreements and contractually agreed-upon installations by 2026. In June, the company announced its first production order from a Vietnamese trucking and logistics company following a successful pilot installation. At the same time, the company installed several HydraGEN™ systems on trucks and container lifters at a major port operator in Vietnam.

In addition, the company aims to build momentum through a stronger presence at trade shows and discussions with potential customers, existing contacts, and industry partners. With the placement in June of a CAD 5 million convertible bond with a two-year term and a 6% interest rate, the Canadian company now has sufficient financial flexibility as it ramps up commercialization.

Deutz: Moving Forward with Fresh Capital

The Cologne-based engine manufacturer shows that the old and new worlds of propulsion do not necessarily have to be at odds. Deutz is further developing its business in the areas of service, energy, and defence while simultaneously pursuing various propulsion technologies. In addition to traditional diesel engines, the group is developing solutions for hydrogen, alternative fuels, and electrified powertrains.

With the acquisition of Flensburger Fahrzeugbau Gesellschaft (FFG), valued at approximately EUR 1.6 billion, Deutz is making the defence sector another key pillar of the group. To this end, the company recently tapped the capital market and raised approximately EUR 179 million gross through a 10% capital increase at EUR 11.70 per share. As is typical, this led to a slight dip in the share price, but the share has already regained the EUR 12 mark.

In addition, analysts are consistently positive and attest to further upside for the shares. The half-year results showed a 28.7% increase in order intake to EUR 1.33 billion. Revenue rose by 10.7% to EUR 1.12 billion, while adjusted EBIT climbed disproportionately by 43.1% to EUR 79.7 million.

Renk: 60% Upside

The group supplies high-performance drives and transmissions for military and civilian applications. The focus is on systems where power density, reliability, and service life are critical. In addition to conventional solutions, the specialist also develops hybrid and electric propulsion systems. But reality shows that just because new technologies are emerging, existing propulsion technology does not automatically disappear.

The defence business is the growth engine that is running at full speed. In the first half of the year, order intake rose by 29.7% to EUR 1.2 billion. As a result, the order backlog reached a new record high of EUR 7.4 billion. Revenue climbed 2.7% to EUR 637.2 million, while adjusted operating profit (EBIT) grew much more strongly, rising 10.1% to EUR 98.2 million. For the full year, Renk confirmed its forecast of more than EUR 1.5 billion in revenue and adjusted EBIT between EUR 255 million and EUR 285 million.

The stock is currently trading at around EUR 40, giving the group a market capitalization of EUR 4 billion. The 2027 P/E ratio of 21.3 is considered moderate for the industry. Analysts see upside potential of just under 60% from current levels.

With its bridge technology, dynaCERT is targeting the millions of existing diesel engines in operation. The focus is now on accelerating the commercialization of this innovative technology. Deutz is expanding into a key growth area, and the stock market is optimistic. According to analysts, the specialist Renk has upside potential of around 60%.