2G Energy AG Lowers 2025 Forecast Amid Eastern Europe Delays and ERP Transition Challenges
German energy systems manufacturer 2G Energy AG has revised its 2025 financial forecast downward due to project delays in Eastern Europe and temporary service disruptions from an ERP system implementation, though the company maintains an optimistic outlook for future growth driven by data center markets and German biomass initiatives.
2G Energy AG, an international manufacturer of sustainable power plants and combined heat and power systems, has adjusted 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 million and EUR 400 million, down from the previous forecast of EUR 430 million to EUR 440 million, though this still represents potential growth of up to 7% compared to the previous year.
The temporary slowdown stems from two primary factors: delays in incoming orders from Eastern Europe, particularly the unexpected failure of the Ukrainian market to materialize as anticipated, and a temporary decline in service volume resulting from the company's ongoing ERP system changeover in Germany. CEO Pablo Hofelich explained that the company had planned to manage both the ERP implementation and ambitious growth simultaneously through large-volume, low-variant orders in the fourth quarter.
The EBIT margin forecast has also been reduced to 6.5% to 8.0%, compared to the previous expectation of 8.5% to 9.5%. This adjustment reflects both the weaker sales volume and one-off 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 growth of up to 7% will not be sufficient to maintain previous margin levels.
Despite these challenges, the company reported strong performance in other markets. Incoming orders outside Ukraine exceeded the previous year's third quarter by 30%, with particularly robust growth in Germany where orders surged 91% above the previous year's level following the launch of an attractive subsidy program known as the biomass package. The rest of Europe excluding Ukraine achieved year-on-year growth of 38%, while North American markets continued to show vibrant sales activity despite the expiration of the Inflation Reduction Act.
The management board remains optimistic about future prospects, maintaining its 2026 forecast unchanged at sales revenues of EUR 440 million to EUR 490 million and an EBIT margin of 9.0% to 11.0%. The company expects significant contributions from the German biomass package, heat pump expansion, and the newly established data center division. Specific projects in the data center markets of Europe and North America, combined with the German biomass initiative, are positioned to secure growth for 2027 and subsequent years.
The biomass package represents a particularly significant opportunity, as it provides for the construction of additional CHP units totaling 2.8 GW by 2033, increasing Germany's current installed output by 42%. The management board expects 2G to participate substantially in this capacity expansion. Additionally, the company benefits from broader 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-powered generators.