Deutz: Defence Momentum
The long-established Deutz Group is undergoing a period of upheaval—or, to use modern parlance, a transformation. The Cologne-based company is increasingly evolving from a traditional engine manufacturer into a sought-after systems integrator. The primary driver of this development is its entry into the defence business. With the approved acquisition of Flensburger Fahrzeugbau Gesellschaft for approximately EUR 1.6 billion, Deutz is setting a course for the future that is, in some respects, entirely new. The military vehicle business promises long-term contracts and stable earnings.
Operationally, the Cologne-based company is underpinning its trajectory with impressive half-year results. Revenue climbed by 10.7% to EUR 1.12 billion in the first half of the year. Adjusted EBIT even jumped by 43.1% to EUR 79.7 million. As a result, the margin improved from 5.5% to 7.1%. Order intake also reflected strong demand, rising by 28.7% to EUR 1.3 billion. Although net income fell to EUR 11.40 million in the second quarter on revenue of EUR 585.30 million, management is sticking to its full-year guidance. The revenue target is between EUR 2.3 and 2.5 billion.
Beyond defence, Deutz is strategically expanding its core business. Together with Kirloskar Oil Engines, the company is developing a new 1.6-litre diesel engine. In addition, series production of the unmanned ground system “Gereon” is starting in Ulm. Analysts view these steps extremely positively.
For example, Warburg Research recently raised its price target to EUR 19. Other analysts see potential for the stock to reach EUR 18. The shares recently climbed above EUR 13. There is therefore still room to reach the analysts’ price targets!
By 2030, Deutz is even aiming for EUR 4 billion in revenue and a 10% margin.
Nordex: Double Analyst Boost Drives Stock Surge
While Deutz continues to expand into the defence sector, wind turbine manufacturer Nordex is getting strong tailwinds from the financial world. The Hamburg-based company struggled for a long time with supply chain disruptions and margin pressure. But these problems now seem to be gradually becoming a thing of the past.
Two major players from the banking world recently gave the Nordex stock a significant boost. Bank of America upgraded the stock from “Neutral” to “Buy” and set a price target of EUR 54. Shortly thereafter, Citigroup followed suit. It also raised its recommendation to “Buy” with a target price of EUR 50. Analysts particularly praise the company’s strong market position in Germany and the recovery of global logistics chains. The stock reacted promptly, posting a nearly double-digit jump to over EUR 40. In doing so, the stock also broke through key technical indicators, such as the 200-day moving average.
Nordex is also reinforcing investor confidence operationally. The group recently secured a major order from the US for 325 megawatts, which includes the delivery of 55 wind turbines. Additional orders from Turkey and Germany are further filling the order books.
Some investors are now eagerly awaiting October 30. On that day, Nordex will present its third-quarter results. Revenue of around EUR 2.22 billion is expected. Since the beginning of the year, the stock has already gained over 40%. If there is also a positive surprise, the stock could soon make the jump toward EUR 50.
dynaCERT: Is the Stock Poised for a Breakout?
As much as Nordex’s major projects contribute to the energy transition, the global fleet of millions of diesel engines remains a reality. This is precisely where the Canadian cleantech company dynaCERT comes in. After years of modest growth, management is working intensively to scale commercially. Under the leadership of CEO Kevin Unrath, dynaCERT is making the transition from a pilot project developer to a mass-production supplier.
At the technological heart of the company is the patented HydraGEN™ system. The retrofit kit generates hydrogen and oxygen on board via electrolysis. This mixture is blended into the diesel engine’s air intake. Since hydrogen burns much faster than diesel, the fuel burns more efficiently. The results are fuel savings and lower CO₂ emissions—good for the wallet on the one hand, and good for the climate on the other. In addition, the HydraLytica™ telematics platform collects consumption data in real time, and in combination with Verra certification, this will open the door to monetizing CO₂ credits in the future.
Southeast Asia, led by Vietnam, currently serves as a key market. After successful tests on trucks, container ships, and industrial vehicles, the company received its first production order from a Vietnamese logistics company in June. Additional projects in waste management and the oil and gas sector followed in August. From this reference market, dynaCERT plans to expand into Cambodia, Indonesia, and Japan.
In addition, dynaCERT will launch a global sales campaign in the second half of 2026. The team is specifically showcasing the technology at trade shows such as IAA Transportation in Hanover, the 24 Heures Camions in Le Mans, and POWERGEN International in the US. To finance this growth, dynaCERT recently issued a convertible bond worth CAD 5 million.
From a technical analysis perspective, things are now getting extremely exciting. The stock is currently trading at around CAD 0.105 and is thus trapped within a tight wedge pattern. A rise to CAD 0.11, or even better, CAD 0.12, could trigger the long-awaited breakout. If this breakout succeeds, it would open up technical upside potential toward CAD 0.15 to 0.20. The research firm GBC Research estimates a medium-term price target of CAD 0.75. That is some serious upside potential!
Deutz is seizing the moment and, through the acquisition of FFG, is transforming itself into a profitable combined defence and industrial network company. Nordex is benefiting from the wind power industry’s comeback, full order books, and significant tailwinds from optimistic analyst price targets. dynaCERT presents itself as a compelling turnaround candidate in emissions reduction. With HydraGEN™, the Canadian company has a functioning bridge technology for the massive global diesel fleet in its portfolio.
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