2G Energy AG has lowered its sales revenue forecast for the 2025 financial year to EUR 380-400 million from the previous projection of EUR 430-440 million, representing up to 7% growth compared to the previous year. The company also anticipates a reduced EBIT margin of 6.5-8.0%, down from the earlier forecast of 8.5-9.5%. These adjustments reflect temporary challenges in the company's operations that have broader implications for the renewable energy sector and investors tracking the transition to decentralized power generation.
The forecast revision stems from two primary factors: delayed incoming orders in Eastern Europe, particularly from Ukraine where expected tenders for combined heat and power (CHP) deliveries failed to materialize in the second half of 2025, and temporary service volume declines in Germany resulting from the ongoing ERP system implementation. Despite these setbacks, incoming orders outside Ukraine in the third quarter exceeded the previous year's quarter by 30%, indicating underlying strength in core markets.
CEO Pablo Hofelich explained the operational challenges, stating that the company had planned to manage both ERP implementation and ambitious growth simultaneously through large-volume, low-variant orders. The ERP changeover, while now transferred to regular operations at German locations, temporarily impacted service operations where the new material planning and resource planning system has not been fully implemented. This development matters because it demonstrates how technological transitions within energy companies can create short-term operational disruptions even when pursuing long-term efficiency gains.
The company's performance in specific markets reveals important trends for the renewable energy industry. In Germany, incoming orders surged 91% above the previous year's level in the third quarter, driven by biogas producers responding to the new biomass subsidy program. The rest of Europe excluding Ukraine achieved 38% year-on-year growth, while North American markets showed positive development despite the expiry of the Inflation Reduction Act in the United States on December 31, 2024. These regional variations highlight how policy changes and market conditions differently affect renewable energy adoption across geographies.
Looking forward, 2G maintains its optimistic outlook for 2026 with unchanged forecasts of sales revenues between EUR 440-490 million and an EBIT margin of 9.0-11.0%. The company identifies specific growth drivers including the German biomass package, which aims to increase installed CHP capacity by 42% to 9.4 GW by 2033, and expansion into the data center market in Europe and North America. The management expects the newly established data center division and joint venture rental business to more than double sales in the USA over the medium term.
The company's strategic focus remains on achieving annual growth of at least 10% plus inflation, supported by ongoing expansion of the heat pump division, increased assembly capacities, and cautious merger and acquisition activities. CFO Friedrich Pehle noted that while the current year's growth won't support previous margin levels, the company expects to resume margin expansion in coming years through modernization of the IT landscape and associated efficiency gains. This forward-looking perspective is crucial for investors and industry observers assessing the long-term viability of decentralized energy solutions.
For 2027 and beyond, 2G anticipates sustained growth from macroeconomic energy trends including increasing grid congestion, expansion of data centers with independent energy supply, growing importance of large heat pumps, and demand for gas engine power generators. The German government's plan to build at least 20 GW of new gas-fired power plants in the relatively short term represents additional growth potential. The company's positioning at the intersection of these trends makes its performance indicative of broader energy transition dynamics, with implications for policymakers, investors, and competitors in the renewable energy space.
