2G Energy Revises 2025 Forecast Amid Eastern Europe Delays and ERP Transition

2G Energy AG, a leading international manufacturer of sustainable power plants and combined heat and power systems, has revised its financial forecast for the 2025 fiscal year, lowering both sales revenue and EBIT margin expectations. The company now anticipates sales revenues between EUR 380 to 400 million, down from the previous forecast of EUR 430 to 440 million, though this still represents potential growth of up to 7% compared to the previous year.

The primary factors driving this adjustment include unexpected delays in incoming orders from Eastern Europe, particularly the Ukrainian market, and temporary service volume reductions resulting from the company's ongoing ERP system implementation in Germany. CEO Pablo Hofelich explained that the company had planned to manage both the ERP implementation and ambitious growth simultaneously, but encountered unforeseen challenges in execution.

The EBIT margin forecast has been reduced to 6.5 to 8.0%, down from the previous range of 8.5 to 9.5%. This reduction stems from weaker sales volumes and one-time expenses associated with the ERP project. CFO Friedrich Pehle noted that while the company has historically offset fixed cost increases through faster sales growth, the current year's more moderate expansion has made this challenging.

Despite these near-term headwinds, the company reported strong performance in other markets. Incoming orders outside Ukraine exceeded the previous year's third quarter by 30%, with German market orders surging 91% above the prior year's level. This growth was largely driven by German biogas producers responding to the government's new biomass package subsidy program, which received belated EU state aid approval in mid-September.

The rest of Europe excluding Ukraine achieved year-on-year growth of 38% in incoming orders, while North American markets continued to show positive development despite the expiration of the Inflation Reduction Act at the end of 2024. The company maintains that structural growth drivers remain intact in this market, particularly through its expansion into data center power solutions and newly established joint venture rental business.

Looking ahead, 2G Energy maintains its 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%. The company anticipates benefiting from several key growth drivers, including the German biomass package, expansion in heat pump offerings, and the launch of new demand response products.

For the longer term, specific projects in the newly targeted data center markets across Europe and North America, combined with the German biomass initiative, are expected to secure growth through 2027 and beyond. The biomass package specifically provides for the construction of additional CHP units totaling 2.8 GW by 2033, representing a 42% increase over the current installed capacity of 6.6 GW.

The company continues to position itself at the forefront of decentralized energy solutions, leveraging its combination of CHP plants, peak-load generators, and large heat pumps. With more than 9,000 systems installed worldwide and operations spanning over 50 countries, 2G Energy remains focused on capitalizing on macroeconomic energy trends including grid congestion, data center expansion, and the growing importance of gas-to-power solutions. Additional information about the company's operations and financial performance can be found at https://www.2-g.com.