German solar project developer hep global GmbH reported a significant improvement in its operating performance for the first half of 2026, with revenue rising approximately 72% to EUR 17.2 million from EUR 10.0 million in the same period of the previous year. Earnings before interest and taxes (EBIT) turned positive at EUR 0.3 million, compared with a loss of EUR 2.4 million a year earlier, according to the company's half-year financial report published via NEWMEDIAWIRE.
The group's net loss for the period narrowed to EUR 3.8 million from EUR 6.8 million. The improvement was driven primarily by higher revenues from project development of solar and battery storage projects and a reduced cost base. Revenue from project development services rose to EUR 14.7 million from EUR 6.8 million, while revenue from the operation and maintenance of solar parks declined slightly to EUR 0.7 million from EUR 0.9 million.
"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," said CEO Martin Vogt. "With a positive EBIT of EUR 0.3 million, we were able to achieve a positive operating result as of the half-year reporting date for the first time in several half-years."
The company's cost-cutting measures, initiated in 2025 and continued in 2026, contributed to the improved result. Personnel expenses fell to EUR 7.0 million from EUR 8.8 million, and other operating expenses dropped to EUR 6.8 million from EUR 9.9 million. Further project progress in the U.S., Germany and Japan led to an increase in work in progress of EUR 5.4 million.
In the U.S., hep global is increasingly focusing on smaller and medium-sized solar projects through distributed generation. The newly founded HEP Solar Holdings USA, LLC received its first disbursements of mezzanine capital as part of a partnership with an external investor. In Germany, the focus remains on developing economically attractive solar and battery storage projects and expanding the project pipeline. In Japan, Poland and Italy, the company continues to develop its existing pipeline, with earnings contributions from project sales anticipated from 2027 onwards.
During the third quarter of 2026, the group streamlined its service business, transferring the operation of solar parks in Japan to an external service provider in July 2026. It also aims to sell its U.S. service business in the fourth quarter of 2026, allowing hep global to concentrate resources on project development.
For the full year 2026, hep global now expects revenue of EUR 40 million to EUR 45 million and a positive 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 adjustment reflects ongoing margin pressure and the postponement of planned project transactions due to the targeted and still pending refinancing of the green bond 2021/2027, which was successfully extended in the spring. The half-year financial report is available on the company's website at https://hepsolar.com/green-bond-2021-2026/.
"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," said CFO Christian Hamann. "It is not growth at any cost that matters, but an economically viable project business."
The results underscore the potential of hep global's strategic shift toward greenfield project development and cost discipline, but also highlight the financing risks facing renewable energy developers in a high-margin-pressure environment. For investors and industry observers, the company's ability to complete its green bond refinancing and convert its project pipeline into reliable revenue will be critical to sustaining profitability. More information about the company is available at www.hepsolar.com.
