Bruker (BRKR) Wagers On Fusion Energy While Wall Street Waits

Bruker (BRKR) has entered into a partnership with Luvata Materials & Solutions to supply RRP superconductors for fusion energy projects. This collaboration comes as governments and private developers across the globe race to build fusion demonstration plants. Bruker Energy & Supercon Technologies, a subsidiary of Bruker, has a history of involvement in fusion projects, including supplying materials and expertise to ITER and the Wendelstein 7-X stellarator.

The RRP superconductors, built with the Rod-Restack Process, have also been used in CERN's Large Hadron Collider and ultra-high field NMR magnets. Bruker reported that BEST revenue increased 11.9% year over year to $74.2 million in the second quarter, and non-GAAP operating margin expanded to 14.1% from 9% a year earlier. Despite these positive signs, Bruker's GAAP results showed a $65.3 million loss in the second quarter due to a $134.9 million non-cash goodwill charge.

The company's core business has not yet turned the corner, with total revenue growing only 2.8% organically. Analysts suggest that the market is still waiting for proof of a fusion-driven upside before committing to Bruker's stock.