2G Energy AG Revises 2025 Forecast Amid Market Challenges, Maintains Long-Term Growth Strategy

2G Energy AG has revised its financial forecast for the 2025 fiscal year, lowering sales revenue expectations to between EUR 380 and 400 million from the previously projected EUR 430 to 440 million. Despite this adjustment, the company still anticipates revenue growth of up to 7% compared to the previous year. The temporary slowdown stems from delays in incoming orders from Eastern Europe, particularly Ukraine, and a temporary decline in service volume resulting from the company's ERP system changeover in Germany.

The company now expects a reduced EBIT margin of 6.5 to 8.0%, down from the previous forecast of 8.5 to 9.5%. This reduction reflects both lower sales volumes and one-off expenses associated with the ERP implementation project. CEO Pablo Hofelich explained that the company had planned to manage both the ERP implementation and ambitious growth simultaneously by filling production with large-volume, low-variant orders in the fourth quarter.

Despite these challenges, 2G Energy continues to demonstrate strong performance in other markets. Incoming orders in the third quarter outside Ukraine exceeded the previous year's quarter by 30%, with Germany showing particularly robust growth of 91% compared to the same period last year. The rest of Europe, excluding Ukraine, achieved year-on-year growth of 38%, while North American markets continue to show positive development despite the expiry of the Inflation Reduction Act in the United States.

The company maintains an optimistic outlook for 2026, keeping its sales revenue forecast unchanged at EUR 440 to 490 million with an expected EBIT margin of 9.0 to 11.0%. This confidence stems from several growth drivers, including the German biomass package that was approved in mid-September, expansion in the heat pump division, and the establishment of a separate Data Center division. The Management Board continues to focus on the company's growth ambition of at least 10 percent annual growth plus inflation.

Looking beyond 2026, specific projects in the newly targeted data center markets in Europe and North America, along with the German biomass package, are expected to secure growth for 2027 and subsequent years. The biomass package specifically provides for the construction of additional combined heat and power units amounting to a total output of 2.8 GW by 2033, increasing the current installed output of 6.6 GW by 42%. The company expects to participate significantly in this capacity expansion.

CFO Friedrich Pehle noted that while the company has historically offset fixed cost increases through faster sales growth and contribution margins, the current year's expected growth of up to 7% will not be sufficient to maintain previous EBIT margin levels. However, the company remains confident that modernization of the IT landscape and associated efficiency gains will support future margin expansion.

The North American market continues to show promise, with the Management Board convinced that the data center market and newly established joint venture rental business will more than double sales in the United States over the medium term. The company's diversified product portfolio, which includes CHP plants, large heat pumps, and peak-load gensets, positions it well to benefit from key macroeconomic energy trends in G20 countries, including increasing grid congestion, expansion of data centers with independent energy supply, and growing demand for gas-powered generators.

For more information about the company's products and services, visit https://www.2-g.com. Additional details about this announcement can be found at https://www.newmediawire.com.