Siemens Energy: From Problem Child to Systemically Important
The numbers speak for themselves: an order backlog of EUR 146 billion, an order intake-to-revenue ratio of 1.82, and an operating profit that more than doubled to EUR 1.16 billion in the first quarter. What is happening here is no short-term hype. The real driving force lies in two areas: gas turbines and grid technology. Both are benefiting massively from a structural shift: the insatiable appetite of AI data centers for electricity. In the US alone, orders in the hundreds of millions are underway for the connection of new data centers. This is not a bubble, but a fundamental shift in demand.
For a long time, Siemens Gamesa was the big question mark. But the picture is changing. The wind division’s operating loss nearly halved in the first quarter, and breaking even is within reach for 2026. The fact that the group has completed the sale of its Indian wind business provides additional relief. Whereas every wind power headline used to weigh on the stock price, the operational recovery is now taking center stage. Management’s message is clear: the problem area is being resolved, and that is enough to stabilize the overall picture.
What further plays into investors’ hands is financial discipline. After years of restraint, money is flowing back to investors. A dividend of EUR 0.70 per share is planned, along with a multi-billion-euro share buyback program. This is not just a nice gesture, but a clear commitment to the company’s own cash generation. Free cash flow before taxes stood at nearly EUR 3 billion in the first quarter. The balance sheet is solid, and the ratings have improved. Those looking for a company that capitalizes on structural growth trends while simultaneously returning capital to its shareholders will find a compelling package here. The stock is currently trading at EUR 158.05.
RE Royalties: Financing the Energy Transition with a Royalty Model
RE Royalties consistently applies the royalty principle, familiar from the commodities sector, to renewable energy. Instead of operating wind farms or solar plants itself, the company provides developers with non-dilutive capital and, in return, secures contractually fixed shares of gross revenue, typically over periods of 20 to 25 years. Since the remuneration is linked to revenue rather than profit, the business model remains largely immune to increases in operating costs. The result for investors is a reliable, predictable revenue stream that benefits directly from the structural growth trends of the energy transition.
RE Royalties has invested in more than 120 projects in North and South America as well as Asia. The portfolio includes solar plants, wind farms, hydroelectric power plants, and battery storage facilities. The strategic focus is now clearly on the US market. And there is a good reason for this. It is precisely there that demand for decentralized solar projects for commercial and industrial use is growing strongly, driven by the rising electricity demand from digitalization and AI infrastructure. The latest partnership with Solaris Energy encompasses 15 projects across several US states, 9 of which are already nearing production. The broad technological and geographic diversification minimizes concentration risks and ensures stable returns from various jurisdictions.
Through the Solaris Energy partnership, RE Royalties is systematically tapping into the market for commercial self-generation solutions. The structured financing is milestone-based. USD 3.8 million has already been disbursed for the first portfolio; the royalty rate is adjusted for each tranche to ensure a fixed minimum return is achieved over 25 years. Furthermore, cash flows continue for the remainder of the term. At the same time, existing financing arrangements have been extended with improved terms. With letters of intent totaling CAD 50 million for new projects in the US, Canada, and the Maldives, the pipeline is well-stocked. This promises sustained growth. Most recently, the company paid a dividend of CAD 0.01 per quarter. In the future, the dividend is to be paid annually. At a current share price of CAD 0.375, this results in a dividend yield of over 10%, provided the payouts remain stable.
Nordex – From a Turnaround Candidate to a Growth Company
The numbers speak for themselves: Nordex has achieved a turnaround. Last year, the Hamburg-based wind power specialist booked orders totaling 10.2 gigawatts (GW), a new company record. In January 2026 alone, orders totaling 220 megawatts (MW) were added from Europe, including the first N175/6.X turbine for Lithuania and a 90 MW project in the UK. The order backlog climbed to EUR 16.1 billion, meaning a large portion of the revenue forecast for 2026 is already secured. This provides planning security, which is worth its weight in gold in this industry.
The new N175/6.X turbine generation is emerging as a game-changer. With a hub height of up to 199 m, Nordex is tapping into previously untapped wind resources. This is a decisive advantage during periods of low wind, when electricity prices are traditionally high. The latest projects from March in North Rhine-Westphalia, Serbia, and on Fehmarn show that customers appreciate this added value. The fact that the Group relies on its own hybrid tower technology also secures margins that competitors without their own manufacturing capabilities cannot achieve. Technological leadership in this segment is a real moat.
While US President Trump has rhetorically attacked wind power, Nordex scaled back its US plans early on. Instead, the company is focusing on its core markets in Europe, where demand remains strong. The first-ever dividend announcement for 2026 signals the end of the consolidation phase, and the 19% equity ratio provides a solid foundation. Analysts have already significantly raised their earnings estimates for 2026. Operationally, Nordex is in a better position today than ever before, with a margin expected to reach double digits in the medium term. The stock currently trades at EUR 44.40.
The energy shortage acts as a yield booster for strategically positioned companies. Siemens Energy leverages its billion-euro order backlog as a systemic buffer and rewards shareholders with dividends and share buybacks. RE Royalties, as a silent financier, generates stable cash flows through its royalty model and attracts investors with a double-digit dividend yield. Nordex has achieved a turnaround and is growing with record orders and technological leadership. Those betting on electrification will find here three compelling, distinct variations on a structural success story.
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