SFC Energy (F3CG) reported first-half 2024 sales of EUR 82 million, a 12% increase year-over-year, as defense and security revenue accounted for more than 30% of group sales, up from below 10% previously.
Order intake surged 151% to EUR 108 million in the period, while profitability metrics improved sharply. Adjusted EBIT more than tripled year-over-year, and EBITDA more than doubled, reflecting the shift toward higher-margin defense contracts. The company’s market capitalization stands at $411 million, with trailing twelve-month revenue of $174 million.
The defense revenue mix within the clean energy segment now exceeds 40%, driven by contracts secured through the German Federal Ministry of Defence’s Rüstungsinitiative program. SFC Energy delivered its first large order to Ukrainian forces, supplying portable, mobile, and stationary power systems that extended operating time for portable radar and anti-drone equipment from seven days to 28 days without requiring battery replacements in combat zones.
Beyond Ukraine, the company is expanding Arctic power solutions for the Canadian government, developing systems capable of operating in temperatures as low as -60 degrees Celsius for one to three years without manual intervention. These solutions are being adapted for Scandinavia and the Baltic states. SFC Energy also announced the acquisition of reformed methanol fuel cell technology assets for EUR 1 million, a move expected to expand its addressable market by about one-third by enabling higher-power systems without pressurized hydrogen containers. Integration is projected to take roughly one year.
Operational updates included the establishment of a repair center and 24/7 native-language support lines in Ukraine, alongside plans for local supply-chain capabilities. The company also highlighted a tripling in membrane production over the past 30 months since inception, supporting its growing order book.
SFC Energy’s stock has gained more than 62% year-to-date and over 34% in the last six months, closing at EUR 20.50 on August 21. The company trades at a P/E ratio of 56 and a PEG ratio of 0.62, with a current ratio of 3.5 and a gross profit margin of 43%. Guidance was raised and narrowed to the upper half in May 2024.
