Energizer (US:ENR) HTSC·2026-02-12 02:21Investment Rating - The report maintains an "Overweight" rating for the company with a target price of €181 per share [6]. Core Insights - The company reported a record high in new gas turbine orders for Q1 2026, achieving revenue of €9.675 billion, a year-on-year increase of 8%, and a net profit of €1.159 billion, up 240% year-on-year, exceeding expectations by 3% [1]. - The order backlog at the end of Q1 2026 reached €146 billion, expected to cover 90% and 70% of revenues for FY 2026 and FY 2027 respectively, indicating high revenue visibility [1]. - The company forecasts revenue growth of 11-13% and low double-digit percentage growth for FY 2026-2028, with an expected profit margin of 9-11% and 14-16% for special items [1]. Summary by Sections Gas and Power Segment - In Q1 2026, the gas and power segment achieved revenue of €3.097 billion, a 10% increase year-on-year, with a special items profit margin of 16.6%, up 2 percentage points [2]. - New orders in this segment totaled €8.751 billion, a 75% increase year-on-year, with 102 new gas turbine units ordered, marking a historical high [2]. - The company holds a 43% market share for gas turbines over 10MW, leading globally [2]. Grid and Industrial Transformation - The grid segment reported revenue of €3.054 billion, a 23% increase year-on-year, with a profit margin of 17.6%, up 5.2 percentage points [3]. - The company announced a $1 billion investment plan for grid capacity expansion, targeting production facilities in the U.S. and Europe [11]. - The wind power segment generated revenue of €2.355 billion, down 3% year-on-year, but the company aims for breakeven in this segment by 2026 [3]. Profit Forecast and Valuation - The company revised its profit forecasts for FY 2026, 2027, and 2028, projecting net profits of €3.384 billion, €4.563 billion, and €5.754 billion respectively, reflecting an 11-13% upward adjustment [4]. - The report employs a sum-of-the-parts (SOTP) valuation method, assigning a 25.49x EV/EBITDA multiple for FY 2026, leading to a target price of €181 per share [12].