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***Disclaimer: The discussions are AI-generated and are based on my write-ups published on Under-Followed-Stocks. No guarantee is given for the correct reproduction of the contents. The author may own, buy and sell securities mentioned. Please always do your own due diligence!***

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Welcome,

in this issue of Under-Followed-Stocks, I will present you Enogia SAS ($ALENO.PA).

Investment Summary:

• Focus on an underfollowed niche of the energy transition market

• converting low-temperature waste heat into electricity through proprietary ORC modules

• several structural tailwinds, including rising energy prices, industrial decarbonization efforts, and tightening environmental regulation

• a second smaller business line, “Innovative Turbomachinery” active in emerging technologies like supercritical CO2 is more than doubling

• operational inflection point reached in 2025, with the transition phase of intense research and development to becoming a profitable industrial player

• 3 consecutive years of over 50% revenue growth, reaching profitability and positive free cash flow in 2025

• Record order backlog at the end of 2025 providing high visibility

• EBITDA margin target of 20% in 2028, trading at an EV/EBITDA of 8.2x based on these targets

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Let’s go!

1. Introduction

ENOGIA is a French clean-tech company specializing in the design and manufacture of compact, modular Organic Rankine Cycle (ORC) modules that convert waste heat into carbon-free electricity.

In the context of the energy transition, much of the attention is directed toward large-scale solutions—renewables, hydrogen, and electrification. Yet a significant share of global energy is still lost before it is ever used. Industrial processes alone generate vast amounts of waste heat, much of it at low temperatures and therefore difficult to monetize. ENOGIA has developed micro-turbines with significantly reduced size and weight, offering superior durability compared to market standards dedicated to converting waste or renewable heat into electricity, integrated into micro power plants.

While the underlying technology is not new, ENOGIA’s approach—centered on miniaturized turbomachinery—targets applications that have historically been overlooked. The result is a business that sits at the intersection of energy efficiency, decentralization, and industrial decarbonization, operating in a niche that is small today but potentially broader than it first appears.

ENOGIA SAS has been listed on the Euronext Growth Paris since July 2021 under the ticker $ALENO.PA. The current market cap is EUR 37 million (USD 43 million).

2. The Company

ENOGIA was founded in 2009 and is headquartered in Marseille, France. The company operates at the intersection of energy efficiency and turbomachinery, with a core focus on developing compact systems that convert waste heat into electricity. Over time, it has built its expertise around the miniaturization of rotating machines, a capability that underpins both its core products and its more recent expansion into adjacent applications. The company holds a total of 10 patents and works closely with IFP Energies Nouvelles in R&D, with whom it has a framework research and development contract

The company’s primary activity is the design and commercialization of small-scale Organic Rankine Cycle (ORC) modules. These systems are used to transform low- and medium-temperature heat—typically a byproduct of industrial processes, biogas production, or maritime operations—into usable electrical power. ENOGIA’s focus on units below 300 kW differentiates it from larger ORC players, allowing it to address a more fragmented and distributed set of use cases where traditional solutions are often not viable. Over 200 ENOGIA ORC modules are already installed in more than 25 countries.

At the center of its offering is a proprietary micro-turbine technology. While most components of an ORC system can be sourced from industrial suppliers, the turbine itself represents the key technical bottleneck. ENOGIA has invested heavily in developing compact, high-speed turbines that are both efficient and adaptable to different operating conditions. This enables the company to offer modular, factory-tested systems that can be installed with relatively limited complexity compared to larger, site-built alternatives.

In 2018, ENOGIA began adapting its turbomachinery technology to other applications, initially developing compressors for hydrogen fuel cells. Faced with the slowdown in the hydrogen market, ENOGIA’s engineering teams were subsequently mobilized more broadly to provide rotating machinery design services to various players in the decarbonization sector. For example, ENOGIA contributes to the development of energy storage and energy conversion using supercritical CO2 cycles, the design of compressors for CO2 sequestration, and the development of cryogenic pumps.

From a commercial perspective, ENOGIA operates internationally, with a large share of its revenue generated outside France. The company sells its systems through a combination of direct sales, distributors, and intermediaries, depending on the market. Its customer base is relatively diverse in terms of end applications, although historically concentrated in sectors such as biogas and environmental services.

Overall, ENOGIA can be characterized as a small but specialized industrial technology company, built around a specific technical capability in turbomachinery and applying it to a niche within the broader energy transition.

3. Products

ENOGIA’s product offering is built around a core technological capability: the design and manufacturing of compact turbomachinery. This capability is applied across two main areas—its established ORC modules and the more recent “Innovative Turbomachinery” segment. While both rely on similar engineering principles, they target different applications within the broader energy transition landscape.

3.1 ORC (Organic Rankine Cycle) Modules

The company’s primary product consists of small-scale Organic Rankine Cycle (ORC) systems designed to convert waste heat into electricity. Enogia generates 82% of revenues in this segment.

What is Organic Organic Cycle (ORC)?

The underlying principle of an ORC is conceptually similar to a conventional steam turbine cycle, but instead of using water, it relies on an organic working fluid with a lower boiling point. This allows the system to operate efficiently at much lower temperatures, typically in ranges where conventional solutions are not viable.

In practice, the process begins with a heat source—this could be hot exhaust gases from an industrial process, excess steam, or thermal energy from a biogas engine. This heat is transferred to the organic fluid, causing it to evaporate. The resulting high-pressure vapor is then directed through a turbine, where it expands and drives a generator to produce electricity. After passing through the turbine, the vapor is cooled, condensed back into a liquid, and recirculated within a closed loop. ORC technology presents a very attractive alternative to other forms of renewable energy, particularly intermittent ones. Indeed, an ORC machine is capable of operating continuously and stably, year-round, without interruption. It can even, if the heat source is modular, become a dispatchable source of electricity, with shorter start-up times than most other electricity generation technologies. Operating mostly from waste heat or renewable heat, which has no cost or sometimes even represents a burden to dissipate, ORC technology has excellent competitiveness, modeled by a very competitive total cost of energy produced. The efficiency of the system is highly dependent on mainly two variables, though. The first is the temperature of the heat source at which the client discharges their waste heat. And the second extremely important factor is the temperature of the cold well, meaning the environment where it’s located. Electricity production will be heavily impacted by these two parameters. ENOGIA has found its sweet spot where the temperature of the waste heat is between 70 and 180 °C. Here, ENOGIA can reach an average conversion rate of 5 to 15% into electricity. If the temperature of the waste heat is higher, the heat is typically recovered directly due to its high quality, making the ORC system less useful.

ORC is therefore the technology of choice for utilizing waste heat at low and medium temperatures. In fact, it is the only one used commercially for this application. As such, it sits at the crossroads of the energy transition (clean electricity production), energy efficiency (recovering waste heat), and the circular economy (local reuse of energy after transformation). ORC machines, producing high-value electricity from renewable or waste heat, also generate revenue and offer a return on investment (payback) for their users that is generally less than five years. In the current environment of steadily increasing energy prices, the return is becoming ever higher for the end customer.

From the outset, ENOGIA’s founders realized that most of the components needed to build ORC modules with a power output of less than 300 kW were available on the industrial supply market (heat exchangers, pumps, PLCs,etc.). However, they identified the turbine as the key component of the ORC machine, which was not readily available. This explains why ORC technology is not widespread. Indeed, while the physical principle of ORC is well understood, the micro-turbine technology necessary for its application did not exist, apart from modified refrigeration unit compressors with insufficient technical characteristics (large size, limited volumetric flow range, fixed volumetric ratio, limited temperature range, and low reliability) to allow for effective use.

In 2010, the founders of ENOGIA set out to develop a micro-turbine concept that would benefit from all the advantages of the kinetic turbines used in high-power ORC machines. They miniaturized these turbines by employing modern technologies such as high-speed permanent magnet motors, high-frequency conversion electronics, and ceramic bearings.

What differentiates ENOGIA’s approach is the scale and design of the system. The company focuses on units below 300 kW, a segment that has historically been underserved due to the technical challenges of downsizing turbomachinery without sacrificing efficiency or reliability. The exceptional compactness of ENOGIA turbines is made possible by the very small size of the turbines, sometimes 5 times lighter than competing expanders. ENOGIA’s ORC modules feature innovative, patented micro-turbines designed for exceptional performance and reliability. Their ultra-compact design allows for easy and quick installation, helping to reduce integration costs for the clients. Their high-speed turbines feature perfect sealing, ensuring optimal efficiency and a long lifespan. This allows the entire ORC module to be delivered as a standardized, factory-tested unit that can be installed with relatively limited on-site work.

ENOGIA offers a wide range of ORC modules, with power capacities ranging from 10 to 180 kW (larger modules are in the pilot phase). Each module is custom-designed to meet the specific requirements of the customers site, taking into account the characteristics of the heat source and energy needs. The modular nature of these systems also makes them adaptable to a wide range of use cases. Rather than requiring large, centralized heat sources, ENOGIA’s solutions can be deployed closer to the point of energy generation, enabling decentralized electricity production and reducing transmission losses. This is particularly relevant in applications such as biogas plants, small industrial sites, or maritime environments, where space and integration constraints are often significant.

ENOGIA is one of the few companies worldwide offering ORC modules that operate with heat sources starting at 70°C, expanding the potential applications of this technology.

3.2 Innovative Turbomachinery

Alongside its ORC business, ENOGIA has been developing a second activity centered on the design of specialized turbomachinery for emerging energy applications. While still smaller in terms of revenue contribution (18% of total revenues), this segment reflects an extension of the company’s core expertise into adjacent technological fields.

The underlying engineering principles remain similar. Turbomachinery, in general, involves the transfer of energy between a fluid and a rotating component, such as a turbine or compressor. ENOGIA’s turbomachinery is smaller, faster, lighter and more responsive compared to competitors. These unique features can be useful in multiple applications.

ENOGIA is for example involved in projects related to CO₂-based systems, including supercritical CO₂ cycles for thermodynamic energy storage and high-temperature heat pump applications. These applications require highly specialized turbomachinery capable of operating under demanding thermodynamic conditions, such as high pressures and variable temperatures. The company’s experience in designing compact, high-speed rotating equipment positions it to address these requirements. In addition to supplying components, ENOGIA increasingly provides engineering services, supporting clients in the design and integration of turbomachinery into broader systems. This service-based activity can be seen as both a complementary revenue stream and a way to remain involved in emerging technologies without committing to full product industrialization.

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4. Business Model

ENOGIA’s business model is centered around the manufacturing and sale of modular energy systems, complemented by engineering services and, increasingly, more flexible deployment models. At its core, the company generates revenue by designing, assembling, and selling ORC modules and related turbomachinery, typically on a project-by-project basis. These systems are delivered as standardized yet configurable units, allowing ENOGIA to balance industrial scalability with application-specific customization.

The economics for customers are generally driven by energy savings and regulatory incentives. ORC installations enable users to convert otherwise wasted heat into electricity, reducing energy costs and, in many cases, lowering carbon emissions. As a result, purchasing decisions are often based on return-on-investment considerations, with payback periods typically targeted at less than five years . This makes the offering particularly attractive in environments with high energy prices or strong regulatory pressure.

From a commercial standpoint, ENOGIA operates across four main application areas - Industry, Maritime, Geothermal Energy, and Environment—each with slightly different dynamics but a broadly similar revenue logic.

Industry

The industrial segment represents one of the most structurally attractive markets for ENOGIA. Heavy industries such as steel, cement, and chemicals generate significant amounts of waste heat as part of their core processes. More recently, Enogia has also won some projects to recover waste heat from hydrogen fuel cells in South Korea. In these environments, ENOGIA’s systems are typically integrated into existing infrastructure to recover this heat and convert it into electricity.

Revenue is generated primarily through the sale of ORC modules, often as part of larger efficiency or decarbonization projects. These are usually capital expenditure decisions made by industrial operators, meaning that sales cycles can be relatively long and tied to broader investment planning. However, once installed, the systems provide a clear economic benefit by reducing energy consumption and exposure to rising energy and carbon costs.

Maritime

The maritime segment has become increasingly relevant as environmental regulations tighten and fuel efficiency becomes a priority for shipping operators. Ships generate large amounts of heat through their engines and auxiliary systems, much of which is currently unused.

ENOGIA’s ORC modules can be installed onboard to recover this heat and generate electricity, thereby reducing fuel consumption. In this segment, revenue is again largely driven by equipment sales, often linked to new builds or retrofitting projects. Given the regulatory backdrop—particularly around emissions and fuel efficiency—investment decisions in this area are increasingly influenced not only by cost savings but also by compliance requirements.

Geothermal Energy

In geothermal applications, ENOGIA’s systems are used to convert naturally occurring heat into electricity. While large geothermal plants typically rely on high-capacity systems, ENOGIA focuses on smaller-scale installations where its compact modules are more suitable.

Here, the business model remains similar: the company sells ORC units to project developers or operators, who integrate them into geothermal sites. The advantage lies in the ability to exploit lower-temperature resources that might otherwise remain unused, effectively expanding the range of viable geothermal projects.

Environment

The environmental segment, particularly biogas and biomass, has historically been one of ENOGIA’s core markets. In these applications, heat is generated as a byproduct of energy production processes, such as gas engines used in waste treatment or agricultural facilities. Recently, ENOGIA has also won some projects where their systems are used to recover heat from waste incineration sites in Singapore, a segment where the management is seeing a lot of demand.

Customers in this segment—ranging from private operators to public entities—use ENOGIA’s systems to improve overall plant efficiency by generating additional electricity from existing heat sources. Revenue is primarily derived from direct equipment sales, often supplemented by optional services or system upgrades. This segment tends to benefit from regulatory incentives and feed-in tariffs, which can improve project economics and shorten payback periods.

Revenue Model and Distribution

Across all segments, ENOGIA generates most of its revenue through the sale of equipment, with additional contributions from engineering services and, to a lesser extent, maintenance or spare parts. Sales are conducted through a combination of direct channels, distributors, and commercial intermediaries, depending on the geographic market and application.

While the core model is still largely transactional, the company has indicated an interest in evolving toward more service-oriented approaches, including usage-based or “Energy as a Service” models. These could, over time, introduce a more recurring revenue component, although they remain at an early stage (more on that in the Growth Driver section).

Overall, ENOGIA’s business model reflects a typical industrial technology company in a scaling phase: capital equipment sales drive growth, while ongoing efforts aim to improve margins, expand applications, and gradually diversify revenue streams.

5. Market, Competition & Customers

Market Overview

ENOGIA operates in a relatively niche segment within the broader energy transition landscape, focusing on the recovery of low-temperature waste heat. While the concept of waste heat recovery is well established, the addressable market for small-scale, decentralized solutions remains less developed. This is largely due to historical technical limitations: conventional systems have typically been optimized for larger installations, leaving smaller and more distributed heat sources underexploited.

The company targets low- to medium-temperature heat streams, which are widely available across industrial, environmental, and energy-related applications. These sources are often abundant but difficult to monetize due to their relatively low energy density and dispersed nature. By focusing on compact systems below 300 kW, ENOGIA positions itself in a segment that is both fragmented and potentially large, even if individual projects tend to be relatively small.

Market adoption is influenced by a combination of economic and regulatory factors. Rising energy prices, increasing carbon costs, and stricter environmental regulations all improve the economics of waste heat recovery. Rising energy prices, carbon pricing mechanisms such as the EU ETS, and sector-specific regulations (e.g., FuelEU Maritime) are directly improving the economics of waste heat recovery projects. In practical terms, each unit of electricity generated from recovered heat reduces fuel consumption, emissions, and regulatory costs, which strengthens the return profile for customers. However, adoption can still be gradual, as projects must compete internally for capital and often depend on achieving acceptable payback periods.

Geographically, the market is also shifting. While Europe remains an important base, growth is increasingly driven by Asia, where industrial expansion and energy efficiency initiatives are creating a larger pipeline of opportunities. ENOGIA already generates a significant share of its revenue in this region, particularly in countries such as South Korea, Japan, and Taiwan.

The overall global ORC market is expected to grow with a CAGR of 7.3% until 2033. This includes system sizes with larger installations that are still dominating in absolute terms and where the market is more mature.

ENOGIA’s core market with small, modular systems is expected to grow faster than the overall market due to the increasing focus in decentralized energy efficiency. The small-scale ORC systems market is expected to grow with a CAGR of around 10-15%.

Comeptition

The competitive landscape reflects the relatively niche positioning of ENOGIA. In the sub-300 kW ORC segment, the number of relevant players is limited, and most competitors are smaller, specialized companies rather than large industrial conglomerates. The small group of direct peers includes for example Climeon, Orcan Energy and Electra-Therm but there are also some emerging players in Asia.

Within this niche, differentiation is less about scale and more about technical characteristics. ENOGIA’s positioning around compactness, modularity, and its ability to operate at very low temperatures (starting around 70°C) appears to be a key advantage, as this is where the largest volume of untapped heat exists. At the same time, reliability, ease of installation, and adaptability to different heat sources are critical factors in customer decision-making.

It is also worth noting that competition is not purely direct. In many cases, the alternative to adopting an ORC solution is simply not to invest. Projects must compete internally for capital within industrial organizations, and their attractiveness depends heavily on external variables such as energy prices, regulatory incentives, and required payback periods. This dynamic can slow adoption even when the underlying technology is viable.

Customers

In the industrial segment, ENOGIA has worked with companies such as POSCO, the South Korean steel producer, where its systems are used to recover waste heat from energy-intensive processes. Similarly, Taiwan Cement Corporation (TCC) represents another example of a large industrial client integrating ORC modules to improve overall plant efficiency. These types of customers are typically large energy consumers, for whom even incremental efficiency gains can translate into meaningful cost reductions. In the maritime segment, ENOGIA has supplied systems for shipbuilding and shipping applications, including projects with Chantiers de l’Atlantique and Louis Dreyfus Armateurs.

In addition to these larger and more visible clients, ENOGIA continues to serve a broader base of smaller operators, particularly in the environmental and biogas segments. These customers are often independent plant operators or local infrastructure providers, where ORC systems are used to enhance the efficiency of biogas engines or waste treatment facilities. While individually smaller, this segment contributes to the overall diversification of the customer base.

A notable development in recent years is the company’s increasing exposure to Asia, where several projects—particularly in South Korea—suggest a shift toward larger-scale industrial partnerships, including involvement in hydrogen-related infrastructure such as fuel cell parks. ENOGIA is for example active in a project with the South Korean energy provider KEPCO (Korea Electric Power Corporation) for the use of supercritical CO2. This indicates that ENOGIA is gradually moving beyond smaller, distributed installations toward more complex and potentially higher-value projects.

6. Growth Drivers & Catalysts

ENOGIA’s growth outlook is shaped by a combination of structural tailwinds and company-specific initiatives. While the underlying demand for waste heat recovery is supported by rising energy costs and increasing regulatory pressure, the company’s ability to scale will depend on how effectively it expands geographically, broadens its product offering, and improves its operational efficiency. Several key drivers stand out in this context.

6.1 Geographical Expansion

A significant part of ENOGIA’s recent growth has been driven by its increasing international footprint, particularly in Asia. Markets such as South Korea, Japan, and Taiwan have emerged as important sources of demand, supported by strong industrial bases and growing policy support for energy efficiency. In many of these regions, energy costs and regulatory frameworks make waste heat recovery projects economically attractive, which can accelerate adoption. ENOGIA was able to sign some significant deals in South Korea during 2024. These projects progressed well in 2025, which has led to further deals in the same country, aided by the acquired references and successes achieved in this segment. Besides that, ENOGIA has also already acquired projects in Taiwan, Hong Kong, China, Japan and Syria. To accelerate the growth in Asia, ENOGIA has recently decided to open a new office in Seoul. Besides Asia, ENOGIA is also seeing opportunities in South America, accompanied by its European home market.

6.2 Expansion of the Product Portfolio

Within its core ORC business, ENOGIA is primarily expanding by broadening its power range and refining its existing product offering. While the company has historically focused on systems below 300 kW, it is gradually extending its range to 3 MW to cover a wider spectrum of applications within small-scale waste heat recovery. This expansion allows ENOGIA to address a broader set of use cases. Smaller units can be deployed in highly decentralized environments such as biogas plants or smaller industrial sites, while higher-capacity systems enable the company to participate in more demanding industrial applications where larger volumes of heat are available. The new medium power segment is currently in the engineering phase with the objective of commissioning a first pilot plant in 2027.

At the same time, the company is working on improving the performance and standardization of its ORC modules. Enhancements in efficiency, modularity, and ease of integration are particularly important, as they directly impact customer economics and installation complexity. By offering a more flexible and scalable product range, ENOGIA can better match system specifications to specific heat sources, which is a key factor in making projects economically viable.

Beyond its core ORC modules, ENOGIA has been gradually expanding its product offering into adjacent areas of turbomachinery. This includes compressors for hydrogen fuel cells, as well as engineering solutions for CO₂-based systems and energy storage applications. While still relatively small in terms of revenue contribution, these activities represent a potential second growth pillar.

6.3 Recurring Revenues (Energy-as-a-Service)

ENOGIA’s Energy as a Service (EaaS) model, marketed under the commercial brand GreenShield Power Solutions, represents a strategic shift from a traditional equipment manufacturer to a provider of recurring energy services. Instead of selling Organic Rankine Cycle (ORC) modules as a one-time transaction, ENOGIA (typically through joint ventures) owns and operates the equipment at the client's site and sells the resulting carbon-free electricity back to them.

This model allows end users to benefit from heat recovery technology without any initial investment or direct cost. The customer pays a preferential rate for the electricity produced, which is more competitive than traditional market rates. For ENOGIA, the primary benefit is the creation of a recurring revenue stream and long-term visibility, as opposed to the one-time margin earned from a standard machine sale.

Because the model is capital-intensive (ENOGIA has to finance the equipment), ENOGIA utilizes Joint Ventures (JVs) with financial partners to fund the initial equipment and installation costs. ENOGIA has already formed two Joint-Ventures, one with ADEME Investments (55% owned by ENOGIA) and one with Eiffel Investments Group (60% owned by ENOGIA).

In 2025, ENOGIA signed its first small-scale geothermal project in this segment as a proof of concept and for 2026 they are expecting to sign the first significant deal with an industrial customer with an estimated investment of EUR 1-2 million. To minimize the financial risks, the management has decided that no more than one in five sales should be related to these kinds of JV projects.

If successfully implemented, this model could fundamentally change the company’s revenue profile. Instead of one-off project revenues, ENOGIA could build a base of recurring income streams, improving visibility and potentially increasing lifetime value per installation.

6.4 Supercritical CO2

Supercritical CO₂ (sCO₂) refers to carbon dioxide that is held above its critical temperature and pressure (around 31°C and 74 bar), where it enters a so-called supercritical state. In this phase, CO₂ behaves neither like a typical gas nor a liquid, but combines properties of both: it has a liquid-like density, which allows for high energy density, and gas-like viscosity, which enables efficient flow through turbomachinery. These characteristics make it particularly attractive for thermodynamic cycles used in energy conversion.

In the context of energy systems, sCO₂ is primarily used in power cycles as an alternative to steam or organic fluids. Similar to an ORC or steam cycle, heat is used to pressurize and expand a working fluid through a turbine to generate electricity. The advantage of sCO₂ lies in its higher efficiency potential, especially at medium to high temperatures, as well as the significantly smaller size of the system. Because of its high density, turbomachinery components such as turbines and compressors can be much more compact compared to conventional systems, which reduces material requirements and potentially lowers capital costs and also allows them to be integrated in more localized energy production like small modular reactors.

Beyond efficiency, sCO₂ systems also offer operational advantages. They can operate in closed loops, are well-suited for integration with various heat sources (including industrial waste heat, concentrated solar power, and even nuclear applications), and can be applied in energy storage systems. In particular, sCO₂-based cycles are being explored for next-generation thermal energy storage and for improving the efficiency of industrial processes where conventional technologies face limitations. The video below explains why CO2 Turbines could play a big role in the future of energy.

From ENOGIA’s perspective, this emerging field is a logical extension of its existing capabilities. The company’s core expertise lies in designing compact, high-speed turbomachinery for challenging thermodynamic conditions—precisely the type of engineering required for sCO₂ systems. The ability to handle high pressures, optimize fluid dynamics, and miniaturize rotating equipment is directly transferable to sCO₂ applications. In that sense, ENOGIA is not entering an entirely new domain, but rather applying its existing technological foundation to a more advanced set of use cases.

While still at an early stage, ENOGIA has already been involved in several projects related to sCO₂-based systems, primarily through engineering services and the development of specific turbomachinery components. ENOGIA for example has been chosen to provide the turbine for a test facility project under a research program launched by Sunbo Unitech and KEPCO (Korea Electric Power Corportation), South Korea’s largest utility company. KEPCO is deeply committed to renewable energy and advancing supercritical CO₂ power generation technologies, positioning this initiative as a core element of South Korea's government-backed efforts to establish an industrialization support center for supercritical CO₂ power production.

In addition, ENOGIA has participated in collaborative European research programs focused on developing sCO₂-based energy cycles like the SCO2OP-TES program to develop the next generation of Power-to-Heat-to-Power (P2H2P) energy storage solutions.

It is important to note that the sCO₂ market itself is still in a developmental phase. Many applications remain pre-commercial, and widespread adoption will depend on further technological validation, cost reductions, and the build-out of supporting infrastructure. As such, this area should be viewed less as a near-term revenue driver and more as a longer-term option on a potentially significant technological shift.

6.4 Efficiency Plan / Profitability

ENOGIA’s efficiency strategy is built on two primary initiatives: the Operational Efficiency Plan, launched in 2023, and the Working Capital Requirement (WCR) Improvement Plan, launched in early 2024. These plans were designed to transition the company from a phase of "growth at all costs" to one of profitable and sustainable growth.

Operational Efficiency Plan (Started 2023)

The core objective of this plan was to stabilize the cost structure while scaling revenue. Key actions included:

• Fixed Cost Reduction: The company successfully lowered its annual break-even point by EUR 1.5 million. This involved rigorous financial discipline regarding structural costs and personnel expenses.

• Industrial Reorganization: ENOGIA moved toward a “lean” industrial organization designed for mass production, focusing on a fluid process of purchasing, assembly, testing, and shipping.

• Product Re-engineering: The company worked to increase gross margins by simplifying the “bill of materials” and standardizing components. This allowed them to benefit from series production effects, which reduce the unit cost of each machine.

• Sourcing Optimization: ENOGIA diversified and optimized its supply chain to lower procurement costs for strategic parts.

Working Capital Requirement (WCR) Plan (Started 2024)

Complementary to the operational plan, this initiative focused on optimizing cash management. The plan achieved an improvement of EUR +2.1 million in WCR during 2025 despite a 57% increase in revenue. Key measures included:

• Billing Milestones: Implementing better-timed invoicing intervals for customers to ensure cash is received earlier in the production cycle.

• Inventory Management: Reducing the volume and price of stored inventory while working with suppliers for “just-in-time” deliveries.

• Payment Terms: Optimizing terms with both customers and suppliers to reduce the cash-to-cash cycle.

The results of these efficiency plans can be seen in full effect in the 2025 results, where ENOGIA was able to achieve high growth, improved margins, a first positive net result and a free cash flow.

These significant achievements can shift the perspective of investors regarding ENOGIA from a loss-making & cash burning promising engineering company to a profitable and cash-generating industrial company with still high growth and future growth potential that is not reliant on further capital increases to fund the growth.

6.5 Increased Production Capacity

ENOGIA is significantly expanding its production capacity. The company has secured a new production site in the northern districts of Marseille, close to its historical base. This move is designed to triple the company's current production capacity. The new building doesn’t require a lot of capex as the buildings are rented and are in excellent condition and require little more than minor adjustments like floor painting. The company expects to move into the new factory by mid-2026. ENOGIA's assembly and testing activities are not capital-intensive, which allows for a rapid ramp-up without massive industrial investment. Expensive operations like CNC machining are outsourced to strategic suppliers. Tripling the capacity will provide the infrastructure needed to support the 2028 target of EUR 25 million in revenue.

7. Shareholders & Management

Arthur Leroux is the CEO & Co-Founder of ENOGIA. He is an Arts et Métiers Paristech (ENSAM) engineer who began his career at Bertin Technologies, within the CNIM group, first as a control engineer in the development of Hovereye-EX and MiniRec drones, then as a project manager in the development of technologies in the life sciences. Alongside his early career, he founded ENOGIA in 2009 and decided quickly to dedicate himself fully to developing the first ORC prototypes.

Anthonin Pauchet is the Deputy CEO and the other Co-Founder of ENOGIA. He is also an Arts et Métiers Paristech (ENSAM) engineer and began his career at PriceWaterhouseCoopers as a financial auditor in the “High-tech, Industries and Services” sector, supporting numerous technology and industrial companies on various business models and stages of maturity. In 2010, he joined ENOGIA, when the company identified the potential of ORCs, to help develop the business plan.

Together, the two Co-Founders still own 21.7 % of the company, making them the largest shareholders. Duna & Cie (investment company) owns 11.9% of the company, and other institutional shareholders own 14.7%. The free float recently increased to 51.7% after Faurecia Ventures sold its stake (10.4%) through an accelerated bookbuilding process in January 2026. Faurecia has been a large shareholder since 2018 with the aim of using ENOGIA’s turbomachinery technology in the hydrogen transport market, a key growth area for ENOGIA at the time of the IPO. As the hydrogen transport market hasn’t developed as expected, the management decided to use its expertise in a broader “decarbonization” market (like energy storage, SCO2) where they saw better potential for profitable growth. As Faurecia had a strong focus on the hydrogen market, it decided to sell its stake in ENOGIA, resulting in a free float of over 50% now.

At the end of 2025, ENOGIA had 250,0000 outstanding warrants in the form of BSPCE (Bons de Souscription de Parts de Créateur d’Entreprise), which are specific share subscription warrants for young innovative companies. Fully exercised, combined with a free share allocation plan implemented in early 2026 (198,000 shares) this could result in the creation of 448,000 new ordinary shares (around 7% dilution for existing shareholders).

8. Financials

For most of its history, ENOGIA has been characterized as a typical small industrial technology company in scaling mode: strong revenue growth, continued investment in R&D and production capabilities, but limited profitability.

ENOGIA’s 2025 financial performance marks a major turning point, characterized by sustained high growth and the achievement of overall profitability. Historically, the company has maintained a strong growth trajectory, recording a 40% CAGR between 2014 and 2019. Following a brief period of stabilization during the 2020 health crisis, growth accelerated significantly from 2023 onwards, with the company delivering three consecutive years of revenue increases exceeding 50%. Importantly, this growth has not only been volume-driven but has also been accompanied by improving operational efficiency.

In 2025, ENOGIA reached record revenue of EUR 12.6 million, representing 57% year-over-year growth. This increase was primarily driven by the ORC Modules segment with EUR 10.3 million (+48%) and a 110% surge in the Innovative Turbomachinery business (EUR 2.3 million). The growth was driven by all of ENOGIA’s four strategic markets:

• Environment: major order in Singapore for waste incineration

• Geothermal: several projects in Asia and America

• Maritime: continuation of contracts with Chantiers de l’Atlantique & Louis Dreyfus Armateurs

• Industry: launch of two major contracts in South Korea

In the Innovative Turbomachinery segment, the growth was mainly driven by the progress of several supercritical CO2 projects.

Regarding the geographical distribution of revenues, ENOGIA continued to increase its international footprint. 91% of revenues were generated from exports (compared to 79% in 2024), primarily driven by numerous contracts in Asia.

At the end of 2025, the order backlog also reached a record high of EUR 26.8 million (+85%) with a record order intake of EUR 25 million, giving the company some visibility to reaching the ambitious targets in the coming years.

This sustained business growth was accompanied by a further increase in ENOGIA’s profitability in 2025. EBITDA reached EUR 1.4 million, representing a margin of 11.4%, compared to 7.2% in 2024. This improvement reflects sound financial discipline regarding fixed costs, particularly personnel expenses (+16.3%), which lowered the break-even point by EUR 1.5 million on an annual basis.

After taking into account depreciation and provisions amounting to EUR 1.6 million, the operating result was -0.15 million, compared to -1.2 million in 2024. Here, it should be noted that ENOGIA is capitalizing large parts of its R&D investments on the balance sheet. In 2025, ENOGIA has capitalized EUR 1.87 million (compared to EUR 2.02 million in 2024). These capitalized R&D investments are amortized over 5 years and in 2025, the depreciation amounted to around EUR 1.4 million.

For the year, the net result was positive at EUR 0.2 million, including financial expenses and tax credits, both stable at -0.3 million and EUR +0.6 million, respectively.

Launched at the beginning of 2024, the Working Capital Requirement (WCR) improvement plan has borne fruit, with an improvement in WCR of EUR 2.1 million in 2025. This has been achieved by shortening the production cycle, improving project milestone payments and optimizing customers and supplier payment terms. Thanks to this improvement, combined with the strong increase in EBITDA, free cash flow was positive for the year, at EUR 1.1 million, compared to a FCF of -2.0 million in 2024. This marks an important milestone for the company, as prior years were generally characterized by negative operating cash flow due to working capital needs and continued investment spending.

Thanks to this strong improvement in operational cash flow, ENOGIA was able to reduce the net debt to EUR 3.3 million, compared to EUR 4.5 million in 2024. The strong liquidity position of EUR 4 million in cash provides the company with the flexibility to pursue its Turbo 2028 strategic goals without the need of further capital increases.

9. Valuation

At its current stage, the investment case for ENOGIA is driven more by future scaling potential than by current earnings power. The company has only just become profitable, and its true profitability can only be assessed once it continues to grow. If one wants to value such a company using multiples based on earnings and not revenues, one has to make some estimates regarding the future profitability.

ENOGIA published the Turbo 2028 plan in 2025. According to this plan, the company aims to continue to grow revenues with a CAGR of more than 30% from 2025 to 2028, reaching revenues of EUR 25 million, an EBITDA margin of 20% and a positive FCF at the end of this period.

The company expects to reach at least 30% revenue growth in 2026. This growth rate could decline to 25% in 2027 and 22.5% in 2028 so that the company would reach the target of EUR 25 million in revenues. With increased scalability, the margins are also expected to increase gradually from 11.4% EBITDA margin to 15% in 2026, 17.5% in 2027 and 20% in 2028. For 2026, the EBIT margin is estimated to be around 4%, 7.7% in 2027 and 10.8% in 2028. Based on these estimates, ENOGIA trades at an EV/EBITDA of 8.2x and EV/EBIT of 15.2x for 2028.

Of course, a lot can happen between now and 2028, and it goes without saying that it is by no means certain that ENOGIA will achieve its goals by then. This is just an estimate to give an idea of how the company is currently valued if they reach these goals. Here, it should be noted that the company was expecting at the IPO in 2021 to reach EUR 95 million in revenues by 2025 and in fact, they only reached EUR 12.5 million in revenues. At the IPO, they were planning for rapid growth in the hydrogen mobility market, where ENOGIA’s turbomachinery was expected to play a key role. The large shareholder that recently sold his stake in ENOGIA (Faurecia) was pushing the idea of entering this segment. But already in early 2023, the management of ENOGIA realized that the expected growth in the hydrogen mobility market would not materialize as expected, so they reduced the very ambitious guidance from the IPO to “growth of at least 50% per year from 2023 to 2025. This guidance was successfully reached in 2025. This example shows that estimates can change very fast, especially when a company is active in innovative technological segments. So if anything positive or negative happens that could change these future estimates, one must adjust the estimates accordingly. Nevertheless, the record order backlog of EUR 26.8 million at the end of 2025 is giving the company some good visibility for the future.

A peer group comparison is not that easy as ENOGIA is active in a niche segment and competitors are either not listed on a stock exchange or far away from reaching profitability. ENOGIA’s closest competitor is probably Orcan Energy from Germany. Orcan has closed its last Series D funding round in 2025 at an estimated valuation of over EUR 100 million and in 2024 the company still made a loss of around EUR 15 million. The only publicly listed direct competitor is the Swedish Climeon AB, that its offering its ORC system mainly for the maritime and European industrial market. The company has a market cap of around EUR 16 million and had revenues of EUR 2.1 million while generating losses of EUR 13 million.

So if Enogia can continue on its path to profitability, it will likely have a unique positioning in its direct competitive environment.

10. Risks

Project-Based Revenue Volatility

One of the most important risks for ENOGIA is the inherently project-driven nature of its business model. Unlike companies with recurring subscription revenue or long-term supply agreements, ENOGIA generates a significant portion of its revenue through individual system sales tied to specific customer projects. As a result, the timing of contracts, installations, and customer investment decisions can materially affect quarterly or annual results. Delays can lead to financial penalties (up to 10% of the contract amount) and impact cash flow. To minimize this revenue volatility, ENOGIA is working on the implementation of the Energy-as-a-service business that could generate recurring revenues.

Scaling and Execution Risk

ENOGIA is currently transitioning from a smaller engineering-focused company into a more industrialized business with growing international exposure. This transition introduces operational risks related to scaling production, managing suppliers, hiring skilled employees, and executing larger projects across multiple regions. Rapid growth can place pressure on internal processes and organizational structures, and there is a risk that operational execution may not keep pace with commercial expansion. In addition, the move to a new production facility could create some challenges.

Technology and Reliability Risk

The company’s competitive positioning depends heavily on the performance and reliability of its turbomachinery. Industrial customers typically require systems that can operate continuously under demanding conditions with minimal downtime. Any technical issues, performance shortfalls, or reliability problems in deployed systems could damage ENOGIA’s reputation and negatively affect future customer adoption. While the company uses remote monitoring to mitigate this, such incidents can damage customer satisfaction and financial results. This risk is particularly relevant for a company whose value proposition is built around proprietary engineering expertise.

Slow Market Adoption

While the long-term outlook for waste heat recovery appears favorable, the pace of market adoption remains uncertain. Many of ENOGIA’s customers operate in capital-intensive industries where investment decisions are often conservative and tied to long budgeting cycles. Even when projects offer attractive economic returns, efficiency investments may still be postponed in favor of core operational spending, particularly during periods of economic weakness or industrial slowdown. This means that the addressable market may develop more slowly than expected.

Some of ENOGIA’s longer-term growth opportunities, particularly in areas such as hydrogen-related turbomachinery and supercritical CO₂ systems, remain at an early stage of commercialization. While these technologies may eventually become attractive markets, their adoption timelines and economic viability are still uncertain. There is a risk that these initiatives require significant investment without generating meaningful revenue contributions in the foreseeable future.

Increasing Competitive Pressure

The market for small-scale ORC systems is currently relatively specialized and fragmented, but this may not remain the case indefinitely. As energy efficiency and waste heat recovery become more attractive markets, additional competitors could enter the space. Larger industrial players with greater financial and manufacturing resources may eventually decide to expand into decentralized ORC solutions, potentially increasing pricing pressure and reducing ENOGIA’s competitive differentiation. The management already mentioned that in Asisa, one of ENOGIA’s growth markets, some competitors recently emerged.

Financial and Balance Sheet Risk

Although ENOGIA has recently achieved positive earnings and free cash flow, the company still operates with relatively limited financial resources compared to larger industrial peers. Its balance sheet remains modest, and continued expansion will likely require ongoing investments in production capacity, working capital, and product development. If growth slows or projects are delayed, financial flexibility could quickly become more constrained. Future capital raises or additional debt financing, therefore, cannot be ruled out.

11. Summary

ENOGIA represents a compelling "turnaround-to-profitable growth" story within the European clean-tech sector, having successfully transitioned from a phase of intense research and development to becoming a profitable industrial player with over 200 machines installed globally. Founded 15 years ago on the principle that more than three-quarters of global energy production is lost as waste heat, the company has developed the most compact and efficient micro-turbines on the market to convert that heat into carbon-free electricity. This mission is now delivering tangible financial results. Through a rigorous efficiency plan launched in 2023, ENOGIA stabilized its cost structure and improved the cash cycle, while simultaneously managing the high revenue growth. The company entered 2026 as a profitable, cash-generative business with a record order book of EUR 26.8 million, providing exceptional visibility for the years ahead. If successfully implemented, the new Energy-as-a-service model can also improve the lumpiness of the business thanks to long-term recurring revenues. The external environment further bolsters ENOGIA's prospects, as rising fossil fuel & energy costs and strict new regulations create a "triple incentive" ecological, economic, and regulatory - for industries to adopt heat recovery technology. While the overall outlook is optimistic, there are key challenges to manage for the company. The current uncertain geopolitical environment is uninviting for larger long-term investments and ENOGIA has to compete especially against alternative investments that might be more important for a certain company in the short term. On the other hand, the technological environment is changing at a rapid pace. For a small company like ENOGIA, it is essential that they are always technologically ahead of competitors, while not having deep pockets for large R&D investments. Nevertheless, with its technology validated across four strategic markets—industry, environment, maritime, and geothermal—ENOGIA is well-positioned as a leader in the global energy transition.

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On May 11, Shelly published its Q1 2026 results:

• Revenues of EUR 33.3 million (+25.9%)

  • DACH region +49%

  • Rest or Europe -10%

  • Rest of World +86%

• Gross Profit of EUR 20.4 million (+43%)

  • Gross Profit margin of 61.2% (vs. 53.8%)

• EBIT of EUR 8.6 million (+30.4%)

  • EBIT margin of 25.9% (vs. 25%)

• Net result of EUR 7.5 million (+33.5%)

• operating cash flow of EUR 8.3 million (+100.2%)

• Free cash flow of EUR 6.4 million (+77.5%)

• Outlook for 2026 confirmed

Shelly Group increased group revenue by 25.9% to EUR 33.3 million in the first three months of 2026, continuing to grow significantly faster than its addressed market. In Q1 2025, the revenue development in the DACH region was a bit weak with “only” 19% yoy growth, but in the current year, this region returned to strong growth of 49% yoy. On the other hand and a bit surprising, the Rest of Europe region declined by 10% yoy. According to the management, this has mainly two reasons. One reason is that in Q1 2025, there was a big jump in revenues in one country in this region (+41% in Q1 2025) and in Q1 2026 these revenues normalized. For the remainder of the year, the management is expecting that this region will return to growth, as this one-time growth effect was only in Q1 2025. The other reason is that Shelly has difficulties in separating the revenues into the different regions, because there are cross-border transactions at the customer level. So if Shelly is, for example, delivering its products to Germany, the customer may sell these products not in Germany, but in another region in Europe, which makes it difficult for Shelly to estimate the exact regional share. So it could be that actually the growth in the DACH region could have been a little less, but on the other hand, the growth in Rest of Europe was stronger. But this is just a reporting issue, the combined trend suggests that there is still strong demand for Shelly products in Europe. The Rest of the World region is still on a small level with only 11% of total revenues, but it is continuing to grow fast with 86% yoy, driven primarily by the US and Australia. For the coming quarters, the management is also expecting to announce some positive news from the US market that could fuel additional growth in that region.

The monetization of the Premium App also continued as planned. The number of users increased by 44% while the revenue increased by 290% from a very small base though. The management is seeing this monetization strategy on track to reach the target for 2026 with 80,000 users and revenues of EUR 2 million. Especially the launch of the camera product suite is expected to support these targets, as these customers are more willing to spend money on premium features.

Gross profit increased disproportionately by 42.9% to EUR 20.4 million. Gross margin improved to 61.1% (3M 2025: 53.8%). The increase reflects an improved product mix as well as a reclassification of marketing development funds (MDF), which had previously been recorded within cost of sales and are now reported within sales and marketing expenses. EBIT increased by 30.4% to EUR 8.6 million, while the EBIT margin improved to 25.9% (3M 2025: 25.0%). Net profit rose by 33.5% to EUR 7.5 million.

Cash flow from operating activities amounted to EUR 8.3 million in the first three months of 2026 (3M 2025: EUR 4.1 million). Cash and cash equivalents increased by 44.4% compared to year-end 2025 to EUR 19.8 million. The equity ratio remained at a high level of 82.0% as of March 31, 2026.

As part of a structured working capital program, initial progress was achieved during the first three months: Days sales outstanding (DSO) improved by 24 days, while supplier prepayments were reduced by more than 40%. The cash conversion cycle declined from 277 days at year-end 2025 to 267 days and is expected to be further reduced to a target corridor of 220 to 240 days by year-end 2026.

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Welcome,

In this Earnings Update, I will have a closer look at the recently published results of Circle Group SpA.

On March 31, Circle Group published its FY 2025 results:

• Value of Production of EUR 25.1 million (+72%)

• Revenues from sales & services of EUR 20.3 million (+90.4%)

  • Proprietary Products of EUR 7.5 million (+131%)

  • Federative Services of EUR 2.3 million (+156%)

• EBITDA of EUR 6.1 million (+102%)

  • EBITDA margin of 24% (vs. 21%)

• EBIT of EUR 2.9 million (+71%)

  • EBIT margin of 11.4% (vs. 11.5%)

• Net income of EUR 2.3 million (+59%)

• Net Cash of EUR 2.6 million (vs. 2.2 million)

• Order Backlog of EUR 34.1 million (+19.5%)

• Guidance 2026 Update:

  • VoP of EUR 27.2-28.8 million (up from 27-28.5 million)

  • EBITDA of EUR 6.3-7.1 million (6-7 million)

During the 2025 fiscal year, the CIRCLE Group posted a significantly positive financial performance, characterized by sustained revenue growth and a marked improvement in operating profitability. The increase in Value of Production and the strong growth of highermargin components, particularly proprietary software and federated services, contributed to a significant rise in EBITDA and the strengthening of margins, highlighting the scalability of the business model.

Particularly noteworthy was the performance of revenues from proprietary software products, also offered as SaaS on a cloud platform, which reached Euro 7.5 million, more than doubling from Euro 3.3 million in 2024 (+131%), reflecting the growing adoption of the Group’s digital solutions.

Milos® Federated Services also saw strong growth, reaching Euro 2.3 million, a 156% increase from the Euro 0.9 million recorded in the previous fiscal year, confirming the market’s growing interest in interoperable and federated models.

Below you can see the split of the revenues across the Business Units of Circle. The Innovative Smart Supply Chain BU is now with 66% of revenue by far the largest Unit, followed by the Global Supply Chain Visibility BU with a 17% share.

EBITDA amounted to €6.07 million, marking a significant increase compared to €3.01 million in FY24A (+101.6%) and exceeding our previous FY25E estimates of €5.40 million. The EBITDA margin stood at 24.2%, improving from 20.7% recorded in FY24A and above prior expectations (21.6%). This performance was further supported by the increasing contribution of higher-margin components, particularly proprietary software and Federative Services, which have progressively taken on a central role in the revenue mix, resulting in a composition expected to be sustained in the coming years and to support margin levels consistent with the current business structure.

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