EnviTec Biogas AG (ISIN: DE000A0MVLS8) reported financial results for the first half of 2026 that aligned with management expectations, revealing a company in transition. While revenues and total output exceeded the prior-year period, earnings declined due to specific market challenges, even as the company laid the groundwork for a significant strategic pivot toward biomethane production.
For the six months ending June 30, 2026, EnviTec generated revenues of EUR 169.2 million, up from EUR 148.4 million in the first half of 2025. Consolidated total output, including plants under construction, rose to EUR 182.9 million from EUR 164.9 million. However, earnings before interest, taxes, depreciation, and amortization (EBITDA) fell to EUR 21.4 million from EUR 26.3 million, and earnings before taxes (EBT) dropped to EUR 4.4 million from EUR 10.2 million. Earnings per share amounted to EUR 0.21, compared to EUR 0.55 a year earlier.
The decline in profitability was primarily attributed to higher costs for placing bio-LNG on the market and the retroactive abolition of double counting for advanced biofuels, effective January 1, 2026. Additionally, a substantial portion of ongoing Plant Construction projects had not yet been finally invoiced as of June 30, 2026, delaying profit recognition under German commercial law.
In the Own Plant Operation segment, the company's largest, revenues increased to EUR 123.4 million from EUR 107.1 million, though EBT decreased to EUR 14.4 million from EUR 20.6 million. The Service segment saw revenues of EUR 23.8 million and an EBT of EUR -3.3 million, impacted by consolidation effects. Conversely, the Plant Construction segment showed a strong recovery, with total output doubling to EUR 36.5 million and EBT improving to EUR -6.8 million from EUR -11.7 million. The order backlog stood at EUR 143.1 million, with EUR 112.1 million related to international projects, particularly in Sweden and Spain.
A pivotal development was EnviTec's success in the Federal Network Agency's biomass auction in June 2026, securing awards for plants with approximately 16 MW of electrical capacity. This provides long-term security for a substantial part of the electricity portfolio for another 12 years. CEO Olaf von Lehmden stated, "With the EEG auction awards and the subsequent investment programme we are accelerating the transition of Own Plant Operation from electricity to biomethane production." The company plans additional investments of around EUR 100 million by 2029 for construction, refurbishment, and conversion of plants to bio-LNG.
CFO Jörg Fischer noted, "The first half of 2026 progressed in line with our expectations. The retroactive abolition of double counting and the costs of placing bio-LNG on the market are weighing noticeably on us this year, but we remain clearly profitable." The company maintains a solid financial foundation, with an equity ratio of 45.2% and cash and cash equivalents of EUR 26.8 million.
For the full year 2026, the Executive Board confirmed its forecast of total output between EUR 330 million and EUR 370 million and EBT between EUR 5 million and EUR 15 million. EnviTec expects rising revenues and earnings in 2027. The full interim report is available at https://www.envitec-biogas.com/company/investor-relations/ir-reports.
This news is significant for investors and the renewable energy sector as it highlights the financial pressures from regulatory changes and market dynamics, but also underscores EnviTec's strategic resilience. The shift from electricity to biomethane production aligns with broader European decarbonization goals, particularly in the heating and transport sectors. The company's ability to secure EEG awards and invest in bio-LNG conversion positions it to capitalize on the emerging green gas market, where demand for biomethane is expected to ramp up. The original release can be viewed on www.newmediawire.com.
