Original-Research: Zefiro Methane Corp. (von GBC AG): BUY

^

Original-Research: Zefiro Methane Corp. - from GBC AG

21.07.2026 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

Group.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

---------------------------------------------------------------------------

Classification of GBC AG to Zefiro Methane Corp.

Company Name: Zefiro Methane Corp.

ISIN: CA98926D1069

Reason for the research: Research Report (Initial Coverage)

Recommendation: BUY

Target price: 1.50 USD

Target price on sight of: 31.12.2027

Last rating change:

Analyst: Cosmin Filker, Matthias Greiffenberger

Operational turnaround in a structurally growing market

Zefiro Methane Corp. is a publicly-traded environmental services provider

focused on the U.S. market and specializing in the identification,

measurement, and reduction of methane emissions from decommissioned,

abandoned, and orphaned oil and gas wells. Operational activities are now

largely consolidated within Plants & Goodwin, whilst the wireline and

downhole services acquired as part of the AWS acquisition have been

integrated into P&G from an operational perspective. In addition, the

company develops and markets emission credits derived from verifiably

avoided methane emissions. In this way, Zefiro combines a project-based

service business with the prospect of additional, high-margin revenue from

the voluntary carbon credit market.

The company addresses a legacy issue in the North American oil and gas

industry. In the U.S., there are millions of inactive, abandoned, or

improperly sealed wells from which methane and other gases can continue to

escape. This poses risks to soil, groundwater, and the use of affected

properties. Since there is no longer a responsible or solvent operator to be

held accountable for remediation for orphan wells, decommissioning must be

financed through government programs. The density of problematic wells is

particularly high in the Appalachian Basin. In this region, Zefiro already

has operational teams, equipment, permits, and long-standing relationships

with customers and regulatory agencies. Additional demand is generated by

private energy producers as well as infrastructure and data center projects,

the implementation of which can be delayed by unremediated legacy wells.

Zefiro's historical business performance was initially strongly influenced

by the establishment of the current corporate structure, which includes, in

particular, the acquisitions of P&G and AWS. In each of the past two fiscal

years, revenue has been slightly above USD 32 million, but the operating

result has been negative in both years. Since the management change in June

2025, however, a clear turnaround in operating performance has become

apparent. The new management has focused on cash-flow-generating core

services and reduced non-strategic costs. In the first nine months of fiscal

year 2025/26, revenue rose by 35.8% to USD 33.19 million, while EBITDA

improved significantly to USD 3.10 million (previous year: -USD 5.52

million). The adjusted EBITDA reported by Zefiro stood at USD 4.25 million.

At the same time, positive operating cash flow of USD 4.12 million was

generated, and financial debt was significantly reduced.

Our forecasts are based both on projects already secured and on the expected

utilization of their expanded equipment and rig capacity. According to the

company, the acquisition of five rigs and supplementary equipment from

Viking Well Service has also expanded annual revenue capacity by

approximately USD 10 million. For fiscal year 2025/26, we expect revenue of

45.18 million USD and EBITDA of 3.73 million USD. For fiscal year 2026/27,

we forecast revenue to rise to 57.92 million USD and EBITDA to reach 10.02

million USD. In 2027/28, we expect revenue of USD 66.85 million and EBITDA

of USD 12.22 million. Additional earnings momentum could result from the

resumption of the carbon credit business starting in the second half of

fiscal year 2026/27.

As part of our DCF valuation model, in which we have also taken into account

the most recent capital increases (net proceeds: USD 5.20 million), we have

arrived at a target price of USD 1.50 per share. We therefore assign a BUY

rating.

You can download the research here:

https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&u=f2faa8e1f24a4975f17c41b5374f6402

Contact for questions:

GBC AG

Halderstrasse 27

86150 Augsburg

0821 / 241133 0

research@gbc-ag.de

++++++++++++++++

Disclosure of potential conflicts of interest pursuant to Section 85 of the

German Securities Trading Act (WpHG) and Article 20 of the Market Abuse

Regulation (MAR) The following potential conflict of interest exists in

relation to the company analysed above: (5a,11); A list of potential

conflicts of interest can be found at: https://www.gbc-ag.de/de/Offenlegung

+++++++++++++++

Completion: 20/07/2026 (08:25 am)

First distribution: 21/07/2026 (09:00 am)

---------------------------------------------------------------------------

The EQS Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

View original content:

https://eqs-news.com/?origin_id=7bb822a7-84cb-11f1-8534-027f3c38b923&lang=en

---------------------------------------------------------------------------

2368956 21.07.2026 CET/CEST

°