Best european energy stocks to invest in 2026

The European energy sector is undergoing a profound transformation driven by renewable energy expansion, grid modernization, and the push for energy independence across the continent. Companies in this space are at the forefront of the energy transition, combining traditional power generation with cutting-edge clean technologies and sustainable solutions.

Siemens Energy provides comprehensive energy technology solutions spanning wind turbines, grid management systems, and hydrogen technologies for the global energy transition. Iberdrola operates as a leading renewable energy producer with extensive wind, solar, and hydroelectric power assets across Europe and North America. Capricorn Energy focuses on oil and gas exploration and production with operations in the North Sea, delivering traditional energy resources while transitioning to cleaner alternatives.

These European energy stocks offer investors exposure to both traditional power generation and renewable energy expansion, positioning them well for Europe's energy transition goals. With strong government support for clean energy and ongoing infrastructure investments, they represent compelling opportunities for investors seeking exposure to the evolving European energy landscape in 2025.

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Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in stocks mentioned in this article.

Now, let`s take a closer look at each of the companies:

  • Deep Value Driller (OL:DVD)

    Deep Value Driller AS is a Norway-based drillship-owning company that engages in owning, contracting, and managing drilling rigs in West Africa, International Waters, and Norway. Founded in 2021 and headquartered in Oslo, Norway, the company has established itself as a specialized provider of modern 7th generation drilling vessels to top-tier drilling contractors worldwide. Deep Value Driller operates through its single flagship drillship, focusing on creating value for customers and investors through safe and sustainable operations with minimal environmental impact.

    The company's core business involves investing in high-quality drilling vessels and providing bareboat charter services to reputable drilling contractors globally. Deep Value Driller operates in the offshore contract drilling services market, with its UDW-capable modern drillship designed for worldwide activity year-round. The company serves industrial actors worldwide, primarily in the oil and gas exploration sector, leveraging its technologically advanced drilling equipment to support offshore energy development activities across multiple geographic regions.

    Deep Value Driller financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 18.61%
    • Return on equity (ROE): 240.06%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 100%
    • Operating margin: 62.73%
    • Net profit margin: 44.84%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 0.43
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): -1.5%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): -4.3%

    💡 Why invest in Deep Value Driller?

    Like a precision-engineered drilling vessel navigating complex offshore environments, Deep Value Driller demonstrates compelling investment strengths:

    • Modern Fleet Advantage: The company operates a technologically advanced 7th generation drillship capable of worldwide activity year-round, providing competitive advantages in drilling efficiency and operational performance.
    • Strategic Geographic Focus: Deep Value Driller maintains diversified operations across West Africa, International Waters, and Norway, reducing regional concentration risks and maximizing contract opportunities globally.
    • Specialized Business Model: The company's focused approach on owning and contracting drilling vessels to top-tier contractors creates stable revenue streams through long-term bareboat charter arrangements worldwide.
    • Environmental Operations Strategy: Deep Value Driller prioritizes sustainable operations with minimal environmental impact, positioning the company well for increasing ESG requirements in offshore drilling operations globally.

    🐌 Key considerations before investing in Deep Value Driller

    However, like navigating treacherous offshore waters where market volatility creates significant hazards, Deep Value Driller faces several challenges:

    • Asset Concentration Risk: The company's reliance on a single drillship creates significant operational risk and revenue vulnerability if the vessel experiences downtime or contract termination unexpectedly.
    • Oil Price Volatility: Deep Value Driller operates in the highly cyclical offshore drilling market, where demand fluctuations and oil price volatility can significantly impact day rates and vessel utilization.
    • Competitive Market Pressures: The offshore drilling industry faces intense competition from numerous vessel operators globally, potentially limiting pricing power and contract negotiation leverage significantly.
    • Regulatory Compliance Burden: Operations across multiple jurisdictions expose the company to complex regulatory requirements and potential policy changes affecting drilling operations worldwide significantly now.

    Final thoughts on Deep Value Driller

    Deep Value Driller's modern 7th generation drilling vessel, strategic geographic diversification, specialized business model, and environmental sustainability focus create compelling opportunities for investors seeking exposure to the offshore drilling sector. However, the company's single asset concentration, cyclical market exposure, competitive pressures, and regulatory compliance risks require careful evaluation of the inherent challenges in offshore drilling investments. Like a specialized vessel navigating complex offshore environments, Deep Value Driller offers potential rewards for investors who understand both the opportunities and risks of the focused offshore drilling business model.

  • Siemens Energy (DE:ENR)

    Siemens Energy AG is a leading global energy technology company providing comprehensive solutions for power generation, transmission, and industrial applications across conventional and renewable energy sectors. Founded in 2020 as a spin-off from Siemens AG and headquartered in Munich, Germany, the company has established itself as a major player in the energy transition through its extensive portfolio spanning gas and steam turbines, power plant services, grid technologies, and renewable energy solutions. With decades of engineering expertise inherited from Siemens and a global footprint serving customers in over 90 countries, Siemens Energy has built strong relationships with utilities, industrial companies, and energy developers while maintaining its reputation for technological innovation, operational excellence, and comprehensive lifecycle services.

    The company's core business encompasses gas services and power generation equipment including turbines and generators, grid technologies for power transmission and distribution, transformation of industry solutions for decarbonization, and Siemens Gamesa renewable energy wind turbine manufacturing and services. Siemens Energy serves customers across the entire energy value chain through integrated offerings that combine equipment supply, engineering services, digital solutions, and long-term maintenance contracts that generate recurring revenue streams. With accelerating energy transition initiatives, increasing renewable energy deployment, and growing demand for grid modernization and industrial decarbonization solutions, Siemens Energy is strategically positioned to capitalize on secular growth trends while leveraging its technology leadership and installed base to generate stable cash flows through diversified energy infrastructure solutions.

    Siemens Energy financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 1.82%
    • Return on equity (ROE): 16.82%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 16.84%
    • Operating margin: 2.67%
    • Net profit margin: 3.62%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 1.61
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): N/A
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 7.1%

    💡 Why invest in Siemens Energy?

    Like a comprehensive energy architect powering the global transition, Siemens Energy demonstrates compelling competitive advantages in the diversified energy technology sector:

    • Diversified Energy Portfolio: Siemens Energy offers comprehensive solutions spanning conventional power generation, renewable energy, grid technologies, and industrial decarbonization, providing exposure to multiple growth drivers globally.
    • Technology Leadership Position: Deep engineering expertise, extensive intellectual property portfolio, and proven track record in complex energy projects create competitive differentiation and enable premium pricing globally.
    • Installed Base Advantage: Large global installed base of turbines, generators, and grid equipment generates stable recurring revenue through long-term service contracts, spare parts sales, and modernization projects globally.
    • Energy Transition Exposure: Strong positioning in renewable energy, grid modernization, and hydrogen technologies provides significant growth opportunities as utilities accelerate decarbonization efforts globally.

    🐌 Key considerations before investing in Siemens Energy

    Despite its strong market position, Siemens Energy faces notable challenges inherent to the cyclical energy equipment and services industry:

    • Siemens Gamesa Challenges: Ongoing operational difficulties and losses at the wind turbine subsidiary create financial drag, management distraction, and execution risks that impact overall profitability and investor confidence.
    • Project Execution Risk: Large-scale energy projects carry inherent risks including cost overruns, technical challenges, and warranty claims that can impact profitability, cash flows, and reputation globally.
    • Cyclical Market Exposure: Demand for power generation equipment correlates with electricity demand growth, energy investment cycles, and economic conditions, creating revenue volatility and making long-term forecasting challenging.
    • Competitive Market Dynamics: Intense competition from established energy equipment manufacturers, Chinese competitors, and technology disruptors could pressure pricing, margins, and market share across key product lines globally.

    Final thoughts on Siemens Energy

    Siemens Energy's diversified energy portfolio, technology leadership, and installed base advantage position it as a comprehensive energy technology provider with significant energy transition exposure. However, investors must consider Siemens Gamesa challenges, project execution risks, and cyclical market dynamics that characterize the energy equipment sector. Like a versatile energy partner enabling the transition to sustainable power, Siemens Energy leverages its engineering expertise and global scale to generate revenues across conventional and renewable energy markets while navigating operational challenges and competitive pressures in evolving energy technology landscapes.

  • Iberdrola (MC:IBE)

    Iberdrola S.A. is one of the world`s largest electric utility companies and a global leader in renewable energy, headquartered in Bilbao, Spain. Founded in 1901, the company has evolved from a traditional Spanish utility into a multinational energy giant with operations across Europe, the Americas, and other international markets. Iberdrola has positioned itself at the forefront of the global energy transition, with one of the world`s largest renewable energy portfolios and a strong commitment to decarbonization and sustainable energy solutions.

    The company operates through multiple business segments including renewable energy generation, electricity networks, and retail energy supply, serving over 100 million customers worldwide. Iberdrola`s strategy focuses on investing heavily in wind and solar power generation, smart grid infrastructure, and energy storage technologies while phasing out fossil fuel assets. The company has established significant market positions in key regions including Spain, the United Kingdom, the United States, Brazil, and Mexico, leveraging its expertise in renewable energy development and grid modernization to drive long-term growth.

    Iberdrola financial statements

    Analysts recommendation: 2.2

    Financial Health

    • Return on assets (ROA): 4.07%
    • Return on equity (ROE): 9.39%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 53.29%
    • Operating margin: 24.28%
    • Net profit margin: 11.98%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 0.8
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): 6.7%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 6.1%

    💡 Why invest in Iberdrola?

    Like a master conductor orchestrating the global energy transition symphony, Iberdrola`s renewable leadership and strategic positioning create compelling opportunities for sustainable investment growth:

    • Renewable Energy Leadership: Iberdrola operates one of the world`s largest renewable energy portfolios with extensive wind and solar assets, positioning the company to benefit from global clean energy transition and supportive policies.
    • International Geographic Diversification: The company`s operations span multiple continents including Europe, the Americas, and other international markets, providing revenue diversification and reducing dependence on single regulatory environments.
    • Grid Infrastructure Investment: Iberdrola`s significant investments in smart grid technology and electricity transmission infrastructure create regulated revenue streams while supporting renewable energy integration into modern power systems.
    • ESG Investment Appeal: As a leader in sustainable energy and decarbonization efforts, Iberdrola attracts ESG-focused investors and benefits from favorable financing conditions for green energy projects and climate investments.

    🐌 Key considerations before investing in Iberdrola

    However, like navigating complex international energy markets and regulatory frameworks, Iberdrola faces operational and market challenges that could impact its performance and growth trajectory:

    • Regulatory Policy Risk: As a utility company, Iberdrola is subject to extensive government regulation and policy changes that can impact electricity pricing, renewable energy subsidies, and investment returns.
    • Capital Intensive Operations: The renewable energy and utility infrastructure business requires substantial ongoing capital investments for new projects, grid upgrades, and technology improvements, potentially straining cash flows and debt.
    • Currency Exchange Exposure: International operations expose Iberdrola to foreign exchange rate fluctuations that can impact financial results when translating revenues and earnings from different currencies back to euros for reporting.
    • Energy Market Volatility: Electricity prices and renewable energy economics can be affected by commodity price changes, weather patterns, and competitive pressures from other energy sources and utility companies in markets.

    Final thoughts on Iberdrola

    Iberdrola`s renewable energy leadership, geographic diversification, and strategic positioning in the global energy transition create compelling opportunities for investors seeking exposure to sustainable utilities and clean energy infrastructure. The company`s extensive renewable portfolio and grid modernization investments position it well for long-term growth in the evolving energy landscape. However, investors should consider regulatory policy risks, capital intensity requirements, and currency exposure when evaluating this renewable energy leader in the dynamic global utilities sector.