Contaminated Sites Become a Sustainable Growth Business
For Zefiro Methane, America's old oil and gas wells are evolving from an environmental problem into a growing infrastructure market. The focus is on the subsidiary Plants & Goodwin, which combines methane measurement, well plugging and site remediation, thereby laying the groundwork for potential carbon credits. A series of contracts is coming from state remediation programs as well as from energy, gas, and infrastructure companies that need safe sites for new projects. With five additional rigs from the USD 4.3 million fleet acquisition of Viking Well Service and operations now spanning 15 US states, Zefiro is continuing to expand its capacity. The order backlog is particularly strong: The USD 19.6 million contract from Ohio for approximately 200 wells is the largest in the company's history to date, supplemented by additional government projects totaling USD 11.5 million and approximately USD 1.9 million from additional contracts in Ohio and Pennsylvania. Zefiro is now active in 15 US states and, through Plants & Goodwin, covers the entire value chain—from measurement and monitoring to well plugging and remediation, all the way to the generation of CO₂ credits.
Record Year Puts Zefiro on the Path to Profitability
Zefiro made a significant operational leap in fiscal year 2025/26: Revenue rose by 31.1% to a record USD 42.5 million, while gross profit climbed by as much as 66% to USD 12.4 million. At the same time, the gross margin improved from 23.0% to 29.2%, and the net loss shrank from USD 10.8 million to USD 3.5 million. Particularly telling is the shift in adjusted EBITDA from a negative USD 4.0 million to a positive USD 3.8 million—an improvement of USD 7.8 million within a single year. The weaker fourth quarter is primarily due to the expansion of additional capacity, the Viking integration, and mobilization for the major Ohio contract. For investors, therefore, the full-year trend is what matters most: Zefiro is growing significantly and has simultaneously taken a step toward operational profitability.
Second National Park Contract: Zefiro Continues to Gain Trust in Ohio
Yet another announcement that fits into the positive picture. Zefiro Methane has successfully plugged two additional oil and gas wells in Cuyahoga Valley National Park near Cleveland, Ohio. This marks the company's second contract within the national park, following the National Park Service's (NPS) highlighting of Zefiro's first remediation project in a dedicated project profile.
The NPS counts 1,800 oil and gas wells across 47 national parks identified under the Bipartisan Infrastructure Law.
This follow-up contract underscores both the quality of Zefiro's operations and the confidence state contracting authorities have in its work. Ohio is particularly relevant, as it is one of the company's most active markets, according to management. Cuyahoga Valley National Park is visited by millions of people annually and is located near Cleveland, Akron, and Canton, which have a combined population of approximately four million. Some of the drilling operations therefore pose not only an environmental risk but also a concrete safety and community risk. One leaking well was even discovered by hikers due to the audible escape of methane. With private-sector initiatives like these, the business could increasingly become a surefire success.
CEO Catherine Flax stated: "Being commissioned again for a second project in Cuyahoga Valley National Park is exactly the kind of recognition that matters most in our industry. We earn follow-up contracts in sensitive, high-profile environments like this one through our performance, and returning to a site that the National Park Service has selected as a showcase project speaks directly to the quality our teams deliver. The National Park Service still has a significant inventory of oil and gas wells that need remediation in its parks, and Ohio remains one of our most active markets. We look forward to continuing to support the agency's remediation efforts as the nationwide remediation of abandoned and orphaned wells gains momentum."
Investment Highlights
ZEFIRO METHANE (0.57 CAD | ZEFI | WKN: A3DVHU | ISIN: CA98926D1069)
- Specialist in the remediation of abandoned oil and gas wells in the US—a market with an estimated volume of USD 400 to 600 billion across 15 US states
- Integrated business model combines well remediation, methane monitoring, environmental services, and the generation of high-value carbon credits
- More than 2 million abandoned oil and gas wells in the US create a long-term structural growth market
- Dynamic revenue growth with expected revenue of USD 42.5 million in fiscal year 2025/26
- Positive EBITDA trend demonstrates that the operating business can already be scaled profitably
- Strategic acquisitions expand the fleet, workforce, and regional presence, further increasing the annual revenue base
- Demand is increasingly coming from energy, natural gas, and infrastructure customers, in addition to government programs
- AI data centres and the multi-billion-dollar expansion of US energy infrastructure open up an additional growth segment
- Methane measurement and certified emissions credits are emerging as high-margin revenue pillars with significant scaling potential
- Strategic partnership with the Well Done Foundation opens access to projects in up to 18 US states and sustainably strengthens the market position
- The Viking fleet acquisition expands the fleet by five rigs and creates approximately USD 10 million in additional annual revenue capacity
- A new USD 11.5 million contract running through 2029 increases revenue visibility
- Environmental remediation, energy infrastructure, methane mitigation, and emissions data in an integrated business model
- Market capitalization at the micro-cap level, but with millions of US dollars in revenue
Outlook: Green Accolade in America's National Parks Brings Substantial New Business
Zefiro Methane is igniting the next phase of its scaling and radically focusing on the environmental signal it sends in the global fight against climate change. The latest success at the heavily visited Cuyahoga Valley National Park in Ohio demonstrates the environmental specialist's ability to take action on the ground. A recent climate study on the scientific portal PMC underscores how urgent this need for action is: According to the study, unplugged, abandoned wells have a methane emission potential up to 21 times higher than properly plugged wells. Because methane is responsible for about 30% of global warming, recent Euronews reports consider rapid mitigation of this greenhouse gas the most effective lever for short-term climate protection.
This is where Zefiro comes in, leveraging a massive, government-documented pipeline of approximately 1,800 deteriorating sources in at least 47 US national parks. CEO Catherine Flax views the renewed contract from the US National Park Service as the most valuable seal of approval for the precise work of her teams. Through its own vertically integrated platform spanning 15 US states, the company seamlessly covers the entire remediation cycle, from measurement to restoration. Buoyed by the US Bipartisan Infrastructure Law, the company is actively driving the green transformation in America's nature reserves.
As part of the 20th International Investment Forum, CEO Catherine Flax will present live, answer analysts' questions and provide an outlook for 2027. Click here to register.
Conclusion: An Oil and Gas Services Provider Is Outperforming
So far, the Canadian company has shown outstanding performance across the entire oil and gas sector. Since the beginning of the year, the share price has already surged by over 90%, even outperforming the spot price of Brent crude, which has gained over 50% since the outbreak of war in the Middle East. For investors looking to hedge the entire oil sector with a Greentech company, this is a good idea.
Fundamental analysis also shows positive signs. With a price-to-sales (P/S) ratio of 1.0 in 2026 and 0.7 based on 2027 estimates, the stock is attractively valued compared to the sector. Analysts at GBC expect revenue of just under USD 58 million and EBITDA of more than USD 10 million for the current fiscal year. This justifies a price target of CAD 2.12—representing just under 275% upside potential from today's price. The 2025/26 annual figures are also expected to be incorporated into the report soon. Very exciting!
IIF host Lyndsay Malchuk speaks with CEO Catherine Flax about the growing threat of methane emissions and the company's future expansion plans.
This update follows the Initial Report dated July 17, 2026, and a further update dated September 30, 2026.
