Over 1,000% With Bloom Energy Not Enough? SFC Energy With Defence Sector Potential! RE Royalties Stock Poised for a Revaluation?

RE Royalties: Revaluation in the Second Half of the Year?

Data centers require enormous amounts of electricity—and they need it to be as reliable, affordable, and, increasingly, green as possible. This is precisely the market segment where RE Royalties is positioning itself. The Canadian company finances projects in the fields of solar, wind, storage, hydropower, and energy efficiency. In return, it receives long-term revenue shares. The company is thus relying on a royalty model that has long been established in the commodities sector but remains relatively unknown in Europe’s renewable energy sector.

According to management, more than USD 80 million has been invested in a diversified portfolio since the company’s founding. In total, the company holds stakes in projects totalling 492 MW of capacity. The plants are estimated to supply enough electricity for approximately 152,000 households and avoid more than 488,000 metric tons of CO₂ annually. The focus is clearly on North America—and thus at the heart of the AI boom. More than 80% of the projects are located in Canada and the US. It is precisely there that the demand for flexible financing solutions for small and medium-sized energy projects is growing. Traditional banks often struggle in this segment. As a result, the company occupies a niche that could benefit from the long-term expansion of renewable energy, the desire for greater energy security, and the rising demand for electricity driven by AI data centers.

Revenue has grown steadily over the past five years. Last year, RE Royalties generated revenue of CAD 6.2 million. Thanks to its business model, costs remain low. And the outlook is promising. Management points to a potential project pipeline worth up to CAD 200 million. The market capitalization remains below CAD 20 million. The potential upside is correspondingly significant should the company succeed in gradually converting the potential pipeline into new investments.

Since February, the share has traded between CAD 0.35 and CAD 0.40. Several attempts to break out of this range have failed; however, that is set to end soon. At the most recent IIF digital investor conference, COO Peter Leighton made it clear that management is dissatisfied with the current share price and is exploring various options to enhance value for shareholders. These include partnerships, new financing structures—but also a potential sale of the entire company.

As a result, the stock could be revalued in the second half of this year. Until then, shareholders can look forward to a dividend yield of more than 10%. Last year, RE Royalties paid out CAD 0.04 per share. So far, there are no signs that this amount will decrease.

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Bloom Energy: Will the Breakout Succeed?

While RE Royalties is still waiting for its breakthrough on the stock market, Bloom Energy has long since achieved it. The stock has nearly tripled in value this year. Over the past 52 weeks, the share price has risen by more than 1,000%. The company is now valued at an impressive USD 82 billion.

This has also raised expectations for its operational performance. At the end of April, Bloom Energy released its first-quarter 2026 results. At first, the market did not know how to interpret these results, and the share traded sideways. But in recent days, it has surged and is closing in on its all-time high of USD 322.

In the first quarter of 2026, revenue rose 130.4% year-over-year, from USD 326.0 million to USD 751.1 million. The gross margin increased from 27.2% to 30.0%. Adjusted EBITDA rose from USD 25.2 million to USD 143.0 million in the first quarter of 2026. In addition, Bloom Energy generated operating cash flow of USD 73.6 million, after having recorded a cash outflow in the same quarter of the previous year. The strong start to the year prompted management to raise its 2026 forecast. Bloom Energy now expects revenue to grow by an average of about 80% year-over-year. Previously, the target had been around 60%. At the same time, the company forecast a higher gross margin and improved operating income. Bloom Energy thus remains firmly on a growth trajectory, but must now confirm this strong momentum over the coming quarters. The valuation is ambitious and leaves no room for error.

SFC Energy: Defence Trade Show Drives Momentum

SFC Energy’s stock reacted with a temporary 10% jump following the company’s announcements at Eurosatory 2026 in Paris. At the defence trade show, the company is presenting new hybrid power solutions for military vehicle platforms in collaboration with General Dynamics European Land Systems (GDELS). The focus is on integrating the EMILY 3000 fuel cell into a GDELS PANDUR vehicle. The solution is designed specifically to support applications such as “Silent Watch” and “Silent Operation.” This allows vehicles to supply electrical power without the main powertrain running continuously. This can reduce fuel consumption, acoustic and thermal signatures, and logistical burdens. At the same time, it is intended to enable longer mission durations and greater operational flexibility.

The companies also plan to begin discussions on an in-depth joint evaluation of tactical hybrid power and fuel cell solutions. The goal is to incorporate integration requirements into existing and future platform architectures at an early stage. Experience gained from ongoing projects—including the delivery of hybrid power supply systems for military and civilian scenarios in Ukraine—will be incorporated into the further development of future power architectures. CEO Dr. Peter Podesser sees the high demand for battle-tested fuel cell systems as confirmation of the technology’s relevance in operational use.

Just days earlier, SFC Energy had unveiled further defence-related innovations ahead of Eurosatory. These include, in particular, the NGTFC 100, a portable fuel cell solution currently being developed for tactical missions, expeditionary operations, and drone charging. Among other things, the system is designed to power BB-2590 batteries, Six-Pack battery systems, and communication and drone defence systems in the field. Due to its low acoustic and thermal signatures, SFC is primarily targeted at covert and mission-critical applications. The company is also showcasing its proven JENNY and EMILY fuel cell series for portable, mobile, and vehicle-integrated applications. The portfolio is complemented by the EFOY ProShelter for long-term autonomous operations in Arctic environments, as well as LAPS power supply systems for high-energy lasers and directed-energy systems. SFC aims to capitalize on the growing need of modern armed forces for robust, mobile, low-signature energy solutions in light of drones, sensor and communications technologies, and increasing electrification. SFC shares have already gained about 78% so far this year.

With energy and defence, SFC Energy combines two megatrends. However, the stock has already performed strongly this year and now carries a market capitalization of around EUR 380 million. There are good reasons for rising prices at RE Royalties. The second half of the year is should be exciting. The high dividend yield provides downside support for the stock. Bloom Energy is one of the stars among US energy stocks. The company is benefiting from the AI boom. However, it cannot afford any slowdown in its growth.

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