dynaCERT: The 500% Opportunity
The great hydrogen euphoria has faded from the stock market for now. Many former high-fliers are still struggling with weak revenue, high capital requirements, and disappointed investors. In this environment, however, dynaCERT could provide a speculative surprise. The Canadian company is not focusing on replacing entire vehicle fleets, but rather on a massive fleet of millions of diesel trucks, construction machinery, mining vehicles, and generators that will remain in service for many years to come.
With HydraGEN, dynaCERT has developed a retrofit system that generates hydrogen and oxygen during operation and feeds them into the combustion process. This is intended to reduce diesel consumption and pollutant emissions. The appeal for fleet operators is obvious: they need neither purchase new vehicles nor undertake costly modifications to existing engines. Every litre saved directly improves the bottom line. The technology is particularly interesting in places where battery-electric solutions currently reach their limits. In mines, on large construction sites, or in remote regions, the necessary charging infrastructure is often lacking. For heavy machinery and large diesel generators, dynaCERT offers specially developed systems. In doing so, the company is positioning itself as a bridge technology between traditional diesel operation and a future with lower emissions.
An important milestone is the German ABE approval. The testing process at the Federal Motor Transport Authority (Kraftfahrt-Bundesamt) took around 26 months; according to the company, TÜV Nord, TÜV Süd, and Continental EMITEC were among those involved. For dynaCERT, this is more than just a technical seal of approval. The homologation removes a major sales barrier in Germany and could also serve as a reference for other European markets.
The CO₂ credit business offers additional potential. The methodology developed by dynaCERT has already been recognized by Verra. The company is now working on the next formal steps to ensure that documented emission reductions can actually be converted into tradable credits. The HydraLytica telematics platform collects consumption and emissions data for this purpose. If the implementation is successful, customers could not only save on diesel in the future but also earn revenue by marketing the avoided emissions. For dynaCERT, this would mark the entry into a higher-margin business with digital and potentially recurring revenue streams.
Vietnam as a Door-Opener
There are also initial signs of progress on the operational front. In Vietnam, the company successfully transitioned to commercial deployment following pilot projects. A logistics company ordered HydraGEN systems, and the technology was also installed on vehicles operated by a major port operator. Vietnam could thus serve as a gateway to Southeast Asia. There are more than 10 million medium- and heavy-duty diesel commercial vehicles on the road there. Even modest market penetration would translate to significant unit volumes for dynaCERT. The new CEO Kevin Unrath is focusing on industrialization, higher production volumes, and commercial market penetration. He confirmed this together with President & Director Bernd Krüper in a recent interview with IIF host Lyndsay Malchuk, in which the management also explained the role Vietnam plays in the company’s expansion and what the further rollout in emerging markets will look like:
The growth opportunities for dynaCERT are significant. The technology, approvals, and market potential are all in place. The company must now demonstrate that tests, partnerships, and letters of intent can translate into solid orders and measurable revenue. If this step succeeds, the stock has strong potential. However, risks remain. After all, a broad commercial breakthrough has yet to materialize. In the first quarter of 2026, dynaCERT generated just under CAD 38,000 in revenue. However, a private placement of CAD 5 million completed at the end of June brought in fresh capital for sales and growth. The funds are to be invested primarily in international sales and in projects in the transportation, mining, construction, and port logistics sectors. If the company succeeds in turning its first orders in Vietnam into a broader rollout, it could make the leap, for the first time, from an interesting technology provider to a commercially relevant retrofit specialist.
Price Potential of Over 500%
For speculative investors, the stock therefore remains highly exciting. The research firm GBC estimates the fair value over a 12-month horizon at CAD 0.75. Based on the current share price of around CAD 0.12, this would correspond to a profit potential of over 500%. The opportunity is therefore enormous—now dynaCERT must prove that its initial Asian reference projects can evolve into a scalable business.
Deutz: From Engine Manufacturer to Defence Contractor
The long-established engine manufacturer Deutz is benefiting from the fact that internal combustion engines will continue to be needed for a long time to come in construction machinery, agricultural equipment, generators, and military applications. At the same time, the company is expanding its business model to include energy supply, services, and defence.
The latest bombshell is the planned acquisition of Flensburger Fahrzeugbau Gesellschaft, or FFG for short. The purchase price is approximately EUR 1.6 billion, making the transaction the largest acquisition in Deutz’s more than 160-year history.
FFG manufactures, maintains, and modernizes armoured personnel carriers, troop transporters, and other military vehicles. The company generated approximately EUR 760 million in revenue in 2025 and employs about 1,100 people. Once the deal is finalized, Deutz aims to become a leading German systems provider for military vehicles, powertrains, and energy solutions.
Strategically, the move makes sense. Germany and other NATO countries are increasing their defence spending, while existing vehicle fleets must be modernized, repaired, and maintained over many years. This service and spare parts business can generate long-term, relatively predictable revenue. Additionally, Deutz benefits from infrastructure investments and the growing demand for decentralized power and emergency power solutions.
This transformation also aligns with a core business that had already shown a noticeable recovery even before the FFG deal. In the first quarter, order intake reached EUR 771 million. In the traditional engine business, orders rose by 26%, and in the high-margin service business, by 13%. Revenue rose by 8% to EUR 530 million, while adjusted EBIT jumped by as much as 46% to EUR 37 million. The operating margin thus improved to 7%.
This highlights the significant operating leverage. As unit volumes rise, profits grow at a disproportionately higher rate. In addition, the “Future Fit” cost-cutting program is having an effect. Annual costs were originally projected to decrease by EUR 50 million by the end of 2026. Analysts at DZ Bank expect this target to be exceeded by about 10%. The engine manufacturer is thus not only cutting costs but also becoming structurally more profitable.
Management most recently confirmed revenue of EUR 2.3 to 2.5 billion and an adjusted EBIT margin of 6.5 to 8% for 2026. These targets still largely refer to the Group prior to the full consolidation of FFG. The target of EUR 4 billion in revenue and a 10% EBIT margin, previously set for 2030, is likely to be achieved significantly sooner following the merger. The company’s existing strategy already called for expanding the less cyclical segments—Defence, Energy, and Services—through further acquisitions.
However, the deal is not a sure thing. Financing it is no small feat either. Approximately EUR 1 billion in additional debt and a capital increase of about EUR 600 million will increase both debt and the number of shares outstanding. The family that previously owned FFG would then hold a 29.9% stake in Deutz, thereby becoming the new anchor shareholder. The annual shareholders’ meeting and antitrust authorities must also still approve the deal. The transaction is scheduled to close in late 2026 or early 2027. According to current plans, the transaction should then already boost earnings per share.
In the short term, there are risks related to integration, financing, and dilution. However, FFG’s high margins and well-stocked order book are likely to largely offset these challenges. If the acquisition succeeds, Deutz would no longer be merely an engine manufacturer but a significantly larger infrastructure and defence stock. The group would benefit from several waves of investment—ranging from defence to infrastructure to decentralized energy supply.
According to analyst estimates, earnings per share of around EUR 1.20 appear realistic for 2027. At the current share price of EUR 9.16, this translates to a P/E ratio of approximately 7.6. This is inexpensive compared to the peer group median of just under 15. The valuation case has thus become even stronger. Deutz is still sometimes treated on the stock market as a cyclical engine manufacturer, but is increasingly evolving into a conglomerate with growing exposure to defence, energy, data centers, and services. If the integration of FFG is successful, this valuation discount is unlikely to persist. DZ Bank therefore sets a price target of EUR 13 for the stock.
Daimler Truck: The Transition Winner
Daimler Truck is the most defensive stock of the trio. The group does not have to rely on a single propulsion technology but can pursue multiple paths in parallel. Conventional diesel will remain the most important profit driver for years to come. At the same time, Daimler is investing in battery-electric trucks, software, more efficient powertrains, and hydrogen fuel cells.
Operationally, the first signs of recovery are emerging. In the second quarter of 2026, global vehicle sales rose by 8% to 86,707 units. The upturn in North America was particularly significant, where sales also rose by 8% to 41,687 vehicles. Following the previous period of weakness, this is encouraging, even though the commercial vehicle industry remains cyclical and must shoulder high investments in new powertrains.
At the same time, Daimler Truck is staying the course with hydrogen. A small-scale production run of 100 Mercedes-Benz NextGenH2 trucks is scheduled to begin at the end of 2026. Powered by liquid hydrogen, the fully loaded vehicles are expected to achieve ranges exceeding 1,000 km. However, regular series production is not scheduled to begin until after 2030. This shows just how long the transition is likely to take. Battery-powered trucks will initially gain a foothold in predictable regional transport and on well-connected routes. In heavy long-haul transport, for specialty vehicles, and in regions with poor charging infrastructure, diesel—and later, possibly hydrogen—will be needed for longer.
Regulatory pressure remains high. According to CEO Karin Rådström, approximately 35% of new vehicle registrations in Europe would need to be electric or hydrogen-powered by 2030. Currently, that share stands at only around 2%. The slow expansion of charging and hydrogen infrastructure increases the risk of missing targets and facing potential fines.
For Daimler, this is both a challenge and an opportunity. The more demanding the technological transformation becomes, the more the Group benefits from its size, financial strength, and global sales and service network. Today, the Group earns the revenue from conventional vehicles that is needed to develop the powertrains of tomorrow.
dynaCERT, Deutz, and Daimler Truck are benefiting from the fact that the decarbonization of heavy-duty transportation and industrial applications will not happen overnight. dynaCERT addresses the existing diesel fleet and offers the greatest speculative leverage. Deutz is banking on the ongoing demand for engines, energy supply, and military vehicles. Daimler Truck is supporting the transition with a broad range of technologies. Investors seeking maximum upside potential and who are aware of the higher risks should bet on dynaCERT. Analysts see mid-term upside potential of over 500%. Those who want to combine growth, infrastructure, and defence and are willing to settle for significantly less upside potential will find an exciting transformation story at Deutz. And those who prefer a more defensive approach to the transition should opt for Daimler Truck.
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