SFC Energy AG has concluded a mixed fiscal year with a robust final quarter, simultaneously unveiling ambitious financial targets for 2026. The company’s strategic pivot centers on expanding its defense and security business, a segment that already emerged as a critical revenue pillar in 2025. The central question for investors is whether this focused strategy can drive profitability as projected.
Analyst Sentiment Shifts Following Results
The company’s latest financial figures and forward guidance have prompted notable revisions from equity researchers. Analysts at Berenberg upgraded their rating to “Buy”, while making a slight adjustment to their price target, lowering it from 18.00 to 17.00 Euros.
A more bullish stance was maintained by First Berlin Equity Research. The firm reaffirmed its buy recommendation and raised its price target from 21.00 to 22.00 Euros. Significantly, First Berlin noted that the company’s new adjusted EBITDA forecast for 2026 stands 27% above its own previous estimates.
Market activity has reflected this growing confidence. Shares closed at 15.12 Euros on Thursday, representing a gain of 15.60% over the preceding seven days.
Solid Core Performance in 2025
For the full year 2025, SFC Energy generated revenue of 143.3 million Euros. This figure came in slightly below initial market expectations but was supported by a powerful finish. The fourth quarter alone contributed 40.6 million Euros, marking the strongest three-month period of the year.
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Profitability metrics presented a clearer positive picture. The company reported an adjusted EBITDA of 16.7 million Euros for 2025, with an operating margin of 11.6%, surpassing analyst forecasts. Adjusted EBIT reached 8.9 million Euros. The order pipeline remained healthy, with a book-to-bill ratio evidenced by 118.5 million Euros in new orders and a year-end order backlog of 78.6 million Euros.
2026 Forecast: Targeting Disproportionate Profit Growth
Management has set accelerated growth objectives for 2026. Revenue is projected to climb to a range of 150 to 160 million Euros. A greater operational leverage effect is anticipated on earnings, with adjusted EBITDA forecast between 20 and 24 million Euros and adjusted EBIT expected to hit 11 to 15 million Euros.
A key driver behind this outlook is a planned shift in revenue composition. The Defense & Security division accounted for approximately 50% of total sales in 2025 and is targeted to reach about 60% in 2026. Within this segment, the core Defense business is being positioned as a primary earnings driver, with its contribution expected to expand from around 10% to 15-20%. The company also anticipates reduced negative currency effects and the absence of certain one-time costs, factors which should further support its profitability goals.
Ultimately, the next phase for SFC Energy hinges not merely on a single record quarter, but on its ability to successfully convert the higher defense revenue share into disproportionate earnings growth throughout 2026 as outlined in its strategic plan.
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