EQS-News: 2G Energy AG lifts third quarter EBIT by 14.7%

2G Energy AG lifts third quarter EBIT by 14.7%

• Sales in Q3 again reach a very high level at EUR 77.6 million (previous year: EUR 76.8 million)
• Service sales advance by 14.6% (EUR 39.7 million, previous year EUR 34.6 million)
• Management Board confirms sales and earnings forecast for 2023 and 2024
• Sales expectations for 2025 stated at EUR 390 to 430 million

Heek, November 27, 2023 - 2G Energy AG (ISIN DE000A0HL8N9), one of the leading international manufacturers of combined heat and power (CHP) systems and producers of heat pumps, generated sales in the past quarter that were recorded marginally higher than in the strong previous year. The prior-year Q3 was characterized by considerable catch-up effects at the end of the pandemic which particularly affected the commissioning and final invoicing of new machines (EUR 37.9 million, previous year: EUR 42.2 million). In 2022, CHP sales reached an atypical peak for a third quarter which was not recorded in either the previous years or in 2023. In this respect, the Management Board is satisfied with an Q3-EBIT of EUR 4.0 million (previous year EUR 3.5 million) and the continued positive business performance, while the economy in general appears to be impaired in many areas.

Service sales grow by 14.6% (EUR 39.7 million, previous year EUR 34.6 million)

Growth in the Services segment, which has been maintained for many quarters, also continued in the past quarter. In the UK market, in particular, a certain reticence to purchase new machines is being compensated for by a significant increase in service activities.

Management Board confirms the sales and earnings forecast for 2023 and 2024

With a look to the current fiscal year, the Management Board continues to expect sales of EUR 310 to 350 million and an EBIT margin of 6.5-8.5%.

With a look to the coming year, the Management Board confirms both the previously communicated sales forecast of up to EUR 390 million and the EBIT margin expectation of 8.5-10%. The increase in the EBIT margin depends mainly on a further normalization of the ratios on the purchasing and sales side. Heat pumps are expected to contribute approximately EUR 10 million to sales.

Sales expectations for 2025 stated at EUR 390 to 430 million

Against the backdrop of continuing and worsening geopolitical tensions, the Management Board expects fossil fuel prices to remain high. At the same time, it is becoming evident in Germany that the financing concept for the expansion of renewable energies has been massively shaken and will probably only be put on a new footing within the context of extensive and very comprehensive political discussions. A tangible slowdown in the energy transition seems plausible. Higher fossil fuel costs combined with lower-than-expected renewable energy capacities will bolster demand for highly efficient combined heat and power plants in the coming years. Consequently, with regard to 2025, the Management Board expects to once again achieve the annual growth target of 10% plus inflation, amounting to sales of EUR 390 to 430 million. An outlook for the years following on from 2025 will be provided as soon as the most recent political events surrounding the legality of the Climate and Transformation Fund and geopolitical developments allow.

"We are currently experiencing typical autumn storms that are temporarily leading to a high supply of wind power," as CFO Friedrich Pehle comments on the current situation. “The political tempests, however, even more underline the necessity to build a reliable, affordable and flexible energy supply infrastructure."

2G company portrait
The 2G Energy AG Group is an internationally leading manufacturer and system provider of decentralized energy supply systems. The company develops, produces and installs comprehensive solutions in the growing market for highly efficient CHPs and large heat pumps. Digital grid integration and plant control for both types of energy generators, as well as service and maintenance, are further decisive performance criteria.

The product portfolio includes CHP plants in the output range from 20 kW to 4,500 kW for operation with hydrogen, natural gas, biogas and other lean gases, as well as large heat pumps in the range from 100 kW to 1,000 kW. CHP plants operate with efficiencies of 90 percent and more, while large heat pumps achieve efficiencies of 300 to 500 percent, depending on the general conditions. With its products and services, 2G is at the interface to a decentralized, secure and largely decarbonized energy supply. More than 8,000 2G systems have already been installed worldwide in various applications, supplying electrical and thermal energy to a wide range of customers from the housing industry, agriculture, commercial and industrial companies, energy suppliers, municipal utilities and local government authorities.

2G is positioned worldwide as a system provider for decentralized energy solutions with its combination of CHP plants and large heat pumps. The company benefits from far-reaching synergies of both plant categories, ranging from project development, procurement, and production to the largely identical customer base and regulatory framework as well as sales channels and digital control and service.

2G is consistently expanding its technological leadership through continuous research and development work, both in power plant and pump technologies as well as in specific software development for service and maintenance activities. The digital grid integration consistently implemented by 2G is an indispensable, system-relevant element in the future electricity market design and represents a high market entry hurdle for competitors. The sector coupling required for the success of the energy transition is reflected in 2G's portfolio.

2G employs more than 900 employees at its headquarters in Heek, Germany, in North America, as well as at five other European locations. The company is active in more than 50 countries and generated net sales of EUR 312.6 million in the 2022 financial year. 2G was founded in 1995 and has been listed on the capital market since 2007. The shares of 2G Energy (ISIN DE000A0HL8N9) are listed in the “Scale” segment of the Frankfurt Stock Exchange.  

2023/2024 calendar dates
November 27-29             German Equity Forum, Frankfurt
February 22                     Announcement of preliminary Net Sales 2023
April 11                            Preliminary results for FY 2023, 2024 guidance
April 18                            Consolidated financial statements for FY 2023
May 13-14                       Spring Conference, Frankfurt
May 23                            Q1 key figures and business trends
June 4                             Ordinary AGM, Ahaus/Germany
September 5                   Consolidated financial statements for H1 2024
November 25                  Q3 key figures and business trends
November 25-27             German Equity Forum, Frankfurt

IR contact
2G Energy AG
Benzstrasse 3, 48619 Heek
Phone: +49 (0) 2568 93 47-2795
Fax: +49 (0) 2568 93 47-15
Email: ir@2-g.de
Internet: www.2-g.de