Alfen N.V. (AMS:ALFEN) shares jumped 23% after Jefferies upgraded the stock, citing the company’s positioning to benefit from the accelerating energy transition and grid congestion solutions.
The Dutch energy solutions provider’s Smart Grids Solutions business, which accounts for 43% of fiscal 2025 revenues, stands to benefit from distribution grid congestion relief efforts. The Dutch Crisis Act is expected to accelerate permitting and approvals, with installations of substations by Dutch grid operators projected to increase by 13% annually until fiscal 2028.
Alfen’s Energy Storage Solutions segment, representing 29% of revenues, reported front-loaded revenue growth of 145%, with order intake up almost 60%. The company’s EV Charging business, which comprises 28% of revenues, is focusing on simplifying its product portfolio while expanding geographically in high-growth markets.
The management board, led by CEO Michael Colijn and CFO Onno Krap, has launched a transformation program aimed at driving profitable growth and geographic expansion. Alfen’s financial position has improved, with net debt of €24.9 million in fiscal 2025, representing 1.0x EBITDA.
Jefferies analysts commented: "Alfen is well positioned to capitalise on the accelerating energy transition, with double-digit growth in all end-markets, projected to drive a near-doubling of EBITDA margins by FY30E."
