Shares in Friedrich Vorwerk, the German specialist in energy infrastructure, surged on Thursday after the company unveiled a record order backlog and upgraded its full-year revenue expectations. The stock jumped by as much as 12% in early trading on the Frankfurt Stock Exchange, making it one of the best-performing European mid-caps of the session.
The company reported that its order book had reached €1.2bn, driven by a wave of contracts for natural gas and hydrogen pipeline networks across Germany and neighbouring countries. Friedrich Vorwerk now expects 2026 revenue to come in at the top end of its previously guided range, citing robust project execution and a favourable regulatory backdrop for energy transition infrastructure.
The rally spilled over into London-listed stocks with exposure to energy infrastructure. Shares in John Wood Group rose 1.8%, while Renew Holdings gained 2.1%. The FTSE 250 index edged up 0.3% to 21,045 points, with industrials among the top-performing sectors. Analysts at Berenberg noted that the order book visibility for European pipeline contractors had improved markedly over the past six months, supported by government spending on energy security and decarbonisation.
For UK investors, the development underscores a broader theme: the accelerating build-out of hydrogen and gas networks across Europe is creating a tailwind for engineering and construction firms. Pension funds and retail investors with exposure to UK-listed infrastructure or industrial funds may see indirect benefits as the sector attracts fresh capital inflows.
Looking ahead, Friedrich Vorwerk said it expects to convert a significant portion of its order backlog into revenue over the next 12 to 18 months. The company also flagged potential further contract awards in the second half of the year, particularly for hydrogen-ready pipeline projects linked to the European Hydrogen Backbone initiative.