Pfisterer: A 100-Year-Old German Secret With 4x Potential

Pfisterer is now my third position alongside Apollo and Oscar. I believe this German industrial company has the potential to become a 4x multibagger over the next few years. It is deeply overlooked, despite operating in one of the most mission-critical infrastructure niches of the modern energy economy. The company recently went public, remains family-aligned, and is positioned to benefit massively from the electrification, grid modernization, and European energy independence megatrends. While the media continues to speak negatively about Germany, there are rare opportunities like this one emerging quietly under the radar.

Pfisterer was founded in 1921 by Karl Pfisterer in Winterbach near Stuttgart. He was a trained electrician and inventor. His patented wedge-connector formed the basis of early company growth. By 1927, the company had over fifty employees and was supplying key components to Germany’s growing electrical grid. Leadership transitioned to his son Walter Pfisterer in 1942, who rebuilt and internationalized the business after the war. By the 1960s, Pfisterer had developed innovative plastic components and set national standards in connection technology for underground power lines.

The third generation, led by Karl-Heinz Pfisterer, took over in the 1970s. He oversaw the globalization of the company and the creation of its now-famous modular plug-in connection system, Connex, which is still the industry standard. Under his leadership, Pfisterer entered high-voltage technologies, rail, offshore, and renewables. What started as a small German workshop became a global infrastructure company with presence across Europe, North America, and Asia.

Until recently, the company was entirely family-owned. That changed with the IPO in May 2025. However, the Pfisterer family still holds a significant stake. There is real skin in the game. Karl-Heinz Pfisterer stepped down from the supervisory board in 2023 and became honorary chairman. His niece and other family members remain major shareholders. The move to a Societas Europaea structure and the introduction of external co-CEOs marks a new phase. The company is opening up while preserving continuity.

The IPO raised approximately 95 million euros in primary proceeds. It also included a limited secondary offering by the family. In total, the free float now stands around 25 to 38 percent, depending on the final greenshoe execution. The offering was well received and the stock opened above the initial pricing range. The proceeds are earmarked for growth investments, particularly in automation, international expansion, new test facilities, and strategic acquisitions. A recent example is the purchase of a UK-based subsea cable repair specialist, expanding Pfisterer’s capabilities in offshore wind infrastructure.

Pfisterer’s moat is built on real-world infrastructure dominance. The company provides end-to-end components for connecting and insulating power lines across all voltage levels. It is cable-agnostic and can serve any utility or project developer, giving it broad compatibility and independence. No single product accounts for more than 3.5 percent of revenue. No single customer exceeds 5 percent. This speaks to the durability and diversification of its business model.

What makes Pfisterer special is the long-term customer base in energy infrastructure. It works with transmission system operators, distribution utilities, rail networks, offshore platforms, and industrial users around the world. Its local-for-local manufacturing footprint ensures compliance with national content rules and protection against tariff risks. Its proprietary technology in high-voltage direct current systems and offshore repair tools gives it a real edge as the global grid becomes more complex and decentralized.

The company posted 383 million euros in revenue for 2024 and delivered 64 million euros in adjusted EBITDA. That represents strong double-digit growth from the previous year. In Q1 2025, the company saw a 45 percent increase in order backlog. The revenue mix continues to shift toward high-margin segments like high voltage and medium voltage. While the overhead line business took a hit from a factory fire, it is already being rebuilt and will come back stronger. Profitability remains robust and cash conversion is solid.

Pfisterer’s growth strategy until 2030 is focused on three pillars. First, deeper penetration of core markets through customer proximity and digital integration. Second, expanding the high-voltage and HVDC portfolio with new testing capacity and R&D. Third, global expansion through small bolt-on acquisitions. The recent addition in the UK is just the beginning. Management also confirmed plans for new automation and logistics systems at its German and Czech facilities. These initiatives are designed to support a future-proof platform.

Pfisterer is uniquely positioned to benefit from the German and EU investment cycles. The energy transition is not just about wind and solar. It is about rebuilding the entire electricity transmission and distribution network. This requires connectors, insulators, substations, joints, and grid interfaces. That is exactly where Pfisterer plays. Germany’s CDU-led government under Chancellor Merz is prioritizing energy security, infrastructure investment, and industrial policy. Billions are flowing into grid upgrades, hydrogen transport, cross-border HVDC links, and resilient infrastructure. The EU’s Green Deal and Fit for 55 plans support the same agenda.

This moment is a structural inflection point for Europe’s energy systems. Pfisterer is not some generic contractor. It is a pure play on grid modernization and electrification. Its exposure to megatrends is clear. Its backlog growth is real. Its margins are improving. Its leadership is aligned. And yet, the company remains almost entirely unknown to the broader investing public.

This is exactly how Friedrich Vorwerk looked just a few years ago. Small float. Low coverage. Strong family involvement. Strong order books. Hidden in plain sight. Eventually the market caught on and rerated the stock. Rheinmetall followed a similar trajectory. A small, sleepy industrial that became a geopolitical rearmament story. The market went from ignoring it to revaluing it dramatically. That is how multibaggers are born.

Pfisterer combines the discipline and durability of a family business with the capital access and transparency of a listed company. The recent IPO gives it the firepower to scale. At the current valuation, the stock trades well below what you would expect for a global infrastructure play with 15 percent EBITDA margins, recurring business, and embedded customer relationships. If the company executes its growth plan and expands its margin profile, a 4x return from here is entirely within reason.

Of course there are risks. The company is still small compared to global giants. Execution matters. Integration of acquisitions must go smoothly. The float is limited and the stock may be volatile. There could be macro shocks. Regulatory delays. Commodity costs. Or foreign competition. But those risks are part of every investment. In Pfisterer’s case, I believe the reward more than compensates for the uncertainty.

Pfisterer now joins Apollo and Oscar as my third core position. Each of these investments represents a different part of the value chain. Apollo is the capital allocator and asset owner. Oscar is the software and services platform for healthcare. Pfisterer is the hardware behind electrification. Together they form a diversified but highly concentrated portfolio designed to thrive over the next decade.

I am not looking to own what everyone else owns. The world is busy chasing US tech, and rightly so. But sometimes, real value sits quietly in overlooked places. In this case, the place is Germany. In a time when sentiment around Germany is weak, the stock market offers a rare gift: an underpriced, high-quality, family-aligned industrial entering a multiyear growth cycle. I believe Pfisterer is one of those hidden gems that few will notice until it has already multiplied.

I am in early. And I plan to stay long.