German power engineering giant Siemens Energy has roared into its new fiscal year, posting financial results that underscore a booming global demand for energy infrastructure. The company reported a significant uptick in revenue and managed to more than double its earnings compared to the previous year. The primary drivers behind this surge remain the gas services and grid technology divisions, which have proven to be reliable engines of growth in a volatile energy market.
Order intake reached an all-time high, climbing by roughly a third to €17.6 billion. A massive portion of this demand is coming from the United States, where grid modernization and power generation needs are accelerating. Specifically, orders in the gas turbine segment skyrocketed by more than 80 percent, hitting €8.75 billion, while the grid technology division saw its order book expand by over 20 percent. Consequently, the company’s total order backlog has swelled to a record €146 billion.
On the financial front, Siemens Energy delivered a positive surprise where it counts most. Adjusted operational profit jumped to €1.16 billion, up from €481 million in the prior-year period, easily beating the average market expectation of €978 million. The margin improved by 6.6 percentage points to reach 12 percent, surpassing both analyst forecasts and the company’s own annual target range. While revenue rose 12.8 percent to roughly €9.7 billion on a comparable basis, it did come in slightly shy of the anticipated €9.9 billion.
CEO Christian Bruch highlighted the successful start, noting that the sustained high demand for gas turbines and grid technology is making a substantial contribution to the company’s positive trajectory. Even the troubled wind subsidiary, Siemens Gamesa, is showing signs of stabilization. Losses at the wind unit have been noticeably reduced, signaling a slight operational improvement. With net income multiplying to reach €746 million, the group has confirmed its financial guidance for the full year.
Volatility Grips Niche Battery Market
While large-cap infrastructure plays are seeing record inflows, the situation is markedly more turbulent for smaller players in the storage sector. Dragonfly Energy Holdings Corp (DFLI), a Nevada-based manufacturer of deep-cycle lithium-ion batteries, closed Tuesday, February 10, down nearly 5% at $2.70.
Operating within the electrical equipment industry, Dragonfly focuses on replacing traditional lead-acid batteries with non-toxic lithium-ion solutions for RVs, marine vessels, and solar applications. Despite the growing adoption of green energy storage, the company’s stock has faced significant pressure. The shares are currently trading vastly below their 52-week high of $26.10, hovering much closer to their yearly low of $1.50. Market capitalization currently sits at approximately $32.73 million.
Technical Signals and Analyst Outlook
Trading volume for Dragonfly remains light, with about 226,000 shares changing hands on Tuesday against an average of 1.1 million. The technical indicators suggest the stock is approaching oversold territory, with a Relative Strength Index (RSI) of 33. However, sentiment remains cautious; short interest is relatively high at 12.8%, indicating that a significant portion of investors are betting on further declines.
The fundamental picture presents challenges as well. Dragonfly reported a trailing Earnings Per Share (EPS) of -$2.00, reflecting a lack of current profitability compared to the broader industry. Wall Street analysts appear skeptical of a near-term recovery, with a consensus price target of just $1.73—significantly lower than the current trading price.
Dragonfly faces stiff competition in the crowded battery space from rivals such as Zeo Energy Corp, Flux Power Holdings, and Solidion Technology. With no upcoming dividend payouts or scheduled earnings reports in the immediate pipeline, investors are left watching to see if the company can stabilize its valuation or if the bearish trend will continue to dominate.
