hep global GmbH, a specialist in solar project development, reported a significant improvement in its operating performance for the first half of 2026, with revenue rising 72% to EUR 17.2 million from EUR 10.0 million in the same period of 2025. Earnings before interest and taxes (EBIT) turned positive at EUR 0.3 million, compared to a loss of EUR 2.4 million a year earlier, according to the company's half-year financial report.
The group's net loss narrowed to EUR 3.8 million from EUR 6.8 million. CEO Martin Vogt attributed the improvement to the strategic realignment focusing on greenfield project development and cost-reduction measures. "Despite the persistently challenging economic and regulatory environment, the Group's business performance in the first half of 2026 was marked by a significant improvement in its operating earnings," Vogt said. "This development underscores that the strategic realignment with a focus on greenfield project development and the measures implemented to improve the cost structure are having an effect."
Revenue from project development services more than doubled to EUR 14.7 million from EUR 6.8 million, driven by the successful marketing of hybrid solar and battery storage projects in Germany. Revenue from the operation and maintenance of solar parks declined to EUR 0.7 million from EUR 0.9 million. Work in progress increased by EUR 5.4 million due to project progress in the U.S., Germany, and Japan.
Cost-cutting measures initiated in 2025 continued to pay off, with personnel expenses falling to EUR 7.0 million from EUR 8.8 million and other operating expenses dropping to EUR 6.8 million from EUR 9.9 million.
In the U.S., hep global is shifting focus to smaller and medium-sized solar projects through its partnership with an external investor, with the newly founded HEP Solar Holdings USA, LLC receiving its first disbursements of mezzanine capital. In Germany, the company is advancing solar and battery storage projects, while in Japan, Poland, and Italy it continues to develop its project pipeline. Earnings from project sales in these markets are anticipated from 2027 onward.
The company also streamlined its service business in the third quarter of 2026, transferring the operation of solar parks in Japan to an external provider in July and aiming to sell its U.S. service business in the fourth quarter. These moves allow hep global to concentrate resources on project development.
Looking ahead, hep global adjusted its 2026 outlook, now expecting revenue of EUR 40 million to EUR 45 million and EBIT of EUR 1 million to EUR 5 million, down from previous targets of EUR 45 million to EUR 55 million and EUR 0 million to EUR 10 million, respectively. The company cited ongoing margin pressure and postponed project transactions due to the pending refinancing of its green bond 2021/2027, which was extended in the spring.
CFO Christian Hamann emphasized discipline in capital deployment. "We have significantly increased revenue and returned to a positive operating result. At the same time, we recognize that this does not yet resolve our challenges regarding financing and realizing project value," Hamann said. "For us, it is not growth at any cost that matters, but an economically viable project business."
The half-year financial report is available on the company's website at https://hepsolar.com/green-bond-2021-2026/. For more information, visit www.hepsolar.com or www.ir4value.de.
The improved results signal that hep global's restructuring efforts are gaining traction, but the reduced outlook highlights persistent challenges in financing and project execution. For investors and industry observers, the company's ability to convert its project pipeline into revenue will be critical, especially as it navigates green bond refinancing and market pressures. The focus on core project development and cost discipline may serve as a model for other renewable energy firms facing similar headwinds.
