Siemens Energy: Orders worth billions secure long-term growth
The German energy technology giant illustrates the enormous scale of global infrastructure expansion. The Group’s fundamental base is reaching historic proportions. Its order backlog has recently risen to an unprecedented EUR 162 billion, driven by a substantial order intake of almost EUR 17.9 billion in the third quarter. The expansion of European grid connections and strong demand for high-voltage direct current transmission systems form the very backbone of the energy transition.
Despite this fundamentally strong order situation, the shares have recently been highly volatile. In the past trading week, the stock fell around 12% and at times traded below EUR 120. Market participants attributed these movements mainly to broader interest rate concerns, sector fluctuations and classic profit-taking after the months-long share price rally.
Nevertheless, the long-term investment story remains intact. Analysts at RBC Capital Markets also confirmed this. The experts reinforced their positive stance and reaffirmed their EUR 200 price target for the DAX stock. With a market capitalisation of just over EUR 94 billion, the Group remains a core investment for investors looking to capitalise on the trillions in hardware and infrastructure investment in the coming years.
RE Royalties: Millions repaid, 10 years of additional revenue secured
RE Royalties recently provided evidence of its business model’s potential. As the Canadian company expands its international portfolio with new solar installations, an earlier financing deal in the US is paying off twice over. The capital originally invested has been repaid in full, while long-term revenue remains in place. On October 19, RE Royalties also announced the acquisition of a revenue royalty on 9 already operational solar installations in the Philippines for USD 1.5 million. The installations on shopping centre rooftops have a total capacity of 14.2 MW.
In return, RE Royalties receives quarterly royalties on gross revenues over the entire operating life of the installations. Long-term power purchase agreements and the existing operating track record reduce the typical development risks of new energy projects. The additional growth potential could pay off. The project partner, Singapore Solar, has around 138 MW of projects at an advanced stage of development, plus an identified pipeline of more than 700 MW. This could lead to further sizeable royalty financing deals.
A development in Wisconsin demonstrates how attractive this model can be. Outagamie Clean Energy Partners has repaid a secured loan of USD 4.6 million in full. The final instalment amounted to around USD 938,000. The loan, which originally carried an annual interest rate of 13.5%, financed the modernisation of a biogas plant that processes agricultural waste into renewable natural gas.
Although RE Royalties has recovered its invested capital in full, a contractually agreed royalty remains in place. For a further 10 years, the company is entitled to an annual payment of 4% of the original investment amount. This equates to USD 184,000 per year, or a calculated USD 1.84 million over the entire term. The first royalty payment has already been received. At the same time, the repaid capital is in principle available for new investments.
RE Royalties demonstrates the economic strengths of its approach: interest income during the financing phase, repayment of the invested capital and additional long-term income. The international portfolio now comprises more than 100 royalty interests in renewable energy projects.
The ongoing strategic review provides further upside potential. Together with PwC Corporate Finance, management is examining various options, including new financing partners, strategic partnerships and a potential sale of the company. Talks with interested parties are already under way. Although a concrete outcome is still pending, the latest transactions underscore the potential to expand the royalty portfolio further with additional funding.
Nordex: World premiere in New Zealand
Global expansion is also driving bulging order books, even among pure-play equipment manufacturers, as reflected in Nordex SE’s operating performance. On October 22, 2026, the Hamburg-based wind turbine manufacturer announced a strategic success and entry into an entirely new market. The company secured its first-ever order from New Zealand.
The energy utility company, Mercury, ordered 40 N133/4.8 wind turbines. With a total capacity of 192 MW, these will power the new Puke Kapo Hau wind farm on the country’s South Island. Particularly lucrative for the northern German company is the additional service contract signed with a term of 30 years. Such long-term maintenance contracts are considered high-margin in industry and secure predictable revenue for Nordex over decades. Construction of the turbines, which are almost 90 m tall, is scheduled to begin in early 2028.
With a market capitalisation of over EUR 3 billion and a share price of around EUR 37, Nordex is consolidating its position as a leading international turbine manufacturer. The move into New Zealand shows that the company’s technology is in strong global demand. As long as political and economic conditions continue to drive the expansion of renewable energy worldwide on a massive scale, Nordex should continue to benefit significantly from its broadly diversified international project portfolio in the future.
Conclusion
Siemens Energy benefits from the necessary expansion of power grids, while Nordex strengthens its international presence with new major orders and long-term service contracts. RE Royalties, by contrast, is focusing on financing renewable energy projects and securing recurring revenue shares in return. The latest investments in the Philippines and the repayment of the OCEP loan demonstrate the potential of this approach.
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