Siemens Energy: The German AI Beneficiary
When it comes to German AI beneficiaries, Siemens Energy has been a name that has come up repeatedly over the years. Since late 2023, the stock has been unstoppable. Back then, problems at its subsidiary Gamesa and speculation about insolvency pushed the stock below EUR 10. Today, it is trading at around EUR 156. The company’s gas turbines, in particular, are in high demand in the US and are bringing in billions.
As a result, Siemens Energy has raised its full-year forecast following the first quarter. The company now aims to increase revenue not by 11% to 13%, but by 14% to 16%. The profit margin is expected to be between 10% and 12% (previously between 9% and 11%). In addition, Siemens Energy aims to generate free cash flow before taxes of around EUR 8 billion. Previous forecasts had called for only EUR 4 to 5 billion.
Growth is expected to continue in the coming years. *mwb research expects Siemens Energy’s revenue to rise to EUR 50.8 billion in 2027 and EUR 57.3 billion in 2028. * EBITDA is expected to rise to EUR 8.6 billion in 2027 and EUR 10.0 billion in 2028. Net income is projected to be EUR 4.5 billion in 2027 and EUR 5.5 billion in 2028. In the previous year, it was only EUR 1.4 billion.
But before Siemens Energy’s gas turbines are installed to power the data centers, other companies are benefiting from AI. One example is Caterpillar. And even before the US company’s construction equipment is put to use, a suitable plot of land must first be found. And even in a vast country like the US, this is no sure thing. Residents are protesting more and more often. As a result, the AI industry must also turn to former industrial and energy sites. And in the US, these sites more often than one might think contain inadequately plugged oil and gas wells. These contaminated sites must be identified, remediated, and permanently sealed. This is where Zefiro Methane’s business model comes in.
Zefiro Methane: An Undiscovered AI Beneficiary
Zefiro Methane is focused on the US market. And the potential for the Canadian company is enormous: estimates suggest there are around 2.2 million abandoned and orphaned wells in the US. More than 1 million of these need to be monitored. Total costs for monitoring and remediation are estimated at between USD 400 and 600 billion.
Two recent project examples demonstrate just how relevant Zefiro’s services already are today. In Indiana County, Pennsylvania, Zefiro was working on an energy infrastructure project in late 2025, about 50 miles east of Pittsburgh. There, a coal-fired power plant is to be converted into a more modern natural gas-fired power plant to supply data centers. During the course of the project, 9 conventional gas wells were discovered on the site. Work could not continue until Zefiro had successfully plugged the wells. Project work has since resumed.
Zefiro was also able to demonstrate that demand exists in Lake Charles, Louisiana. In early 2026, the company completed a USD 5 million project there. Nine previously plugged wells were remediated. For Zefiro, the project was significant in several respects. It was the company’s first contract in Louisiana and, at the same time, one of the first so-called off-season projects during the winter months. This underscores Zefiro’s ability to better utilize its expanded equipment fleet and additional teams throughout the year.
Zefiro’s new fiscal year began on July 1. The company aims to generate more than CAD 50 million in revenue this year. With more equipment, significantly more work should be possible. The stock is currently trading at around CAD 0.64, giving the company a market capitalization of approximately CAD 70 million. Given the expected revenue and growth potential, this seems anything but expensive.
https://youtu.be/nNodjcqNJMM?si=OHX05QBFlwErdiW3
2G Energy: 100% in Just a Few Months
While Zefiro’s stock is not yet viewed as an AI beneficiary, the revaluation at 2G Energy has already begun. It is also an example of just how dynamically such a shift can occur. Since the end of March, 2G’s stock has nearly doubled. The company is now valued at around EUR 1.1 billion. Much of this reflects expectations priced into the stock.
So far, the AI potential has only been reflected in order intake. In the second quarter of 2026, 2G Energy achieved by far the highest order intake in the company’s history. In the first half of the year, order intake totaled over EUR 400 million, already significantly exceeding the EUR 229.1 million in revenue from new plants for the entire year of 2025. The business with decentralized gas-fired power plants for supplying electricity to data centers in the US is performing particularly well. In addition to the order worth more than EUR 100 million secured in May, further data center orders in the triple-digit million-euro range were added. In Germany, the company is once again benefiting from demand for biogas flexibility solutions. Additionally, 2G is tapping into new market segments such as the mining industry.
The Executive Board confirmed the outlook despite a weaker first quarter of 2026. For the current year, 2G continues to target revenue at the upper end of its forecast of EUR 490 million, as well as an EBIT margin of 9.5 to 10.5%. For 2027, the company maintains its outlook for revenue of EUR 570 to 620 million and an EBIT margin of more than 11%. For the following years, the Executive Board expects growth to accelerate further and margins to rise, although the high proportion of equipment sales will continue to act as a brake for the time being. According to the company, a more significant improvement in margins is likely to become apparent primarily starting in late 2028, when the rapidly growing installed power plant fleet begins to generate increasing service revenue.
This values 2G at twice its annual revenue. This shows just how undervalued Zefiro currently is.
Zefiro operates in a very attractive niche. The business model may be somewhat difficult for German investors to grasp, but it is already generating significant revenue and is expected to grow sustainably. The valuation simply appears too cheap. 2G Energy shows just how quickly a stock can be revalued due to AI hype. This stock also does not appear to have reached its full potential yet, but growth must now be realized. Siemens Energy remains a core investment in the energy sector. However, expectations for revenue and profit growth are high, and the valuation leaves no room for error.
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