Siemens Energy: On the Verge of an All-Time High
The second-quarter results were well received by investors. This has also significantly brightened the chart picture. After a brief pullback last week down to the EUR 133 range, Siemens Energy shares successfully tested the horizontal support zone and subsequently turned upward. The next resistance level on the way to a new all-time high is at EUR 159.46. Both the MACD and the Relative Strength Index (RSI) generated Buy signals.
The Munich-based company delivered a thoroughly impressive performance last quarter thanks to the continuing growth in energy demand. Between April and June, it recorded order intake of EUR 17.9 billion, which exceeded market estimates.
Revenue rose to EUR 11.4 billion during the same period, representing growth of 18.5%. Net income also improved significantly, reaching EUR 1.6 billion after adjusting for one-time items. The adjusted profit margin stood at 14.2%. Based on these figures, Group management is sticking to its targets for the current fiscal year and continues to expect annual net income after taxes of around EUR 4 billion.
A key factor in the overall result was the performance of the wind power division. The subsidiary Gamesa, which had posted losses in previous periods, returned to profitability this quarter. As a result, the company generated a net profit for the first time since 2022.
The operating profit of the division was EUR 75 million. In the same period last year, the company had posted a loss of EUR 438 million in this segment. This financial turnaround of more than EUR 500 million is primarily attributable to internal optimizations. Processes were made more productive while simultaneously increasing cost efficiency.
RE Royalties: Partnership Could Boost Project Volume to USD 67.5 Million
RE Royalties is consistently driving its growth forward. The Canadian company is investing a third tranche of USD 1 million in Solaris Energy’s solar portfolio, thereby increasing its total commitment to USD 4.8 million. At the same time, both companies signed a non-binding LOI that provides for the expansion of their collaboration to a royalty financing volume of up to USD 67.5 million.
In addition to the projects already financed, the pipeline includes another 96 solar projects with a total capacity of approximately 190 megawatts of direct current (MWDC) in the US. Each new financing deal secures long-term, revenue-based royalty payments for RE Royalties for an initial period of 25 years and beyond, for the entire operational life of the plants.
This latest announcement underscores the potential of a business model that has so far been rarely used in the energy sector. RE Royalties applies the royalty principle, familiar from the mining sector, to renewable energy. Instead of building solar or wind farms itself, the company provides capital to project developers and, in return, receives a share of future revenue. This model is complemented by secured bridge financing, the proceeds of which can be invested directly into new projects. This generates recurring cash flows without the high investment and operational risks associated with a traditional plant operator.
The market environment also plays into RE Royalties’ favour. Global electricity demand is rising significantly due to AI data centers, electrification, and the expansion of energy infrastructure. In the US alone, solar, wind, and storage projects accounted for approximately 90% of newly installed electricity capacity in 2025.
The key figures also speak in the company’s favour. Since its founding, more than CAD 83 million has been invested in 29 transactions, resulting in a portfolio of 135 projects in the areas of solar, wind, battery storage, hydropower, biogas, and energy efficiency. The average return on these investments is around 19%.
American Electric Power: Strong Demand for Grid Expansion
American Electric Power, one of the largest regulated utilities in the US, also reported figures that were not entirely convincing. In the second quarter of 2026, adjusted operating income was USD 742 million, or USD 1.36 per share. This result is slightly below the prior-year figure of USD 766 million. Net income declined to USD 713 million from USD 1.23 billion in the same period a year earlier.
Despite the slight decline in the most recent quarter, management views the overall business performance for the first half of the year as very positive. As a result, the company has raised its expectations for the full year 2026. Management now anticipates operating earnings of between USD 6.25 and USD 6.55 per share, after previous estimates were set slightly lower.
A key focus for AEP at present is the high demand for electricity infrastructure. This demand is driven by the high energy requirements of large industrial facilities and data center operators. The company has significantly increased its contractually secured grid capacity, resulting in purchase agreements totaling 69 gigawatts through 2030.
To supply and distribute these volumes of electricity, AEP is implementing an investment plan. The current five-year program calls for expenditures totaling USD 72 billion. In addition, the company is evaluating further infrastructure projects with a value of USD 5 to USD 8 billion. To secure actual electricity production, AEP has already signed contracts for gas turbines with a capacity of 13 gigawatts.
To ensure that the high costs of grid connection for large industrial customers do not lead to higher electricity prices for residential households, AEP is working closely with the relevant authorities. In several US states, special rate structures have already been introduced for large-scale consumers to make them contribute more directly to the costs. In addition, the company is utilizing government-backed loans. The resulting savings on interest payments are expected to directly contribute to reducing the financial burden on end consumers.
Global electricity demand is growing at a rapid pace, and investors could benefit enormously from this in the coming years. Siemens Energy is impressing with strong results and is approaching its all-time high; American Electric Power is investing billions in expanding the power grids; and RE Royalties is consistently expanding its portfolio of long-term cash flow projects.
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