Germany's 2G Energy H1 output falls 4.7% on fewer Ukraine orders, EBIT margin declines

Overview

• Germany power plant maker's H1 2026 total output fell 4.7% yr/yr to EUR 184 mln

• EBIT margin for H1 2026 declined to 0.6% from 3.3% a year earlier

• Company raised 2027 revenue forecast and secured over EUR 400 mln in Q3 orders

Outlook

• 2G Energy maintains 2026 revenue guidance at upper end of EUR 440-490 mln range

• Company raises 2027 revenue forecast to EUR 600-650 mln from EUR 570-620 mln

• 2G Energy issues 2028 revenue forecast of EUR 750-850 mln

Result Drivers

• UKRAINE ORDER VARIANCE - Fewer short-notice orders from Ukraine led to a decline in new plant revenue in H1 2026

• SERVICE REVENUE NORMALIZATION - Service revenue improved in Q2 after ERP conversion effects were minimized

• WORKFORCE EXPANSION - Personnel expenses rose due to consolidation of subsidiaries and expansion ahead of expected growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the heavy electrical equipment peer group is "buy"

• Wall Street's median 12-month price target for 2G Energy AG is €80.00, about 42.6% above its September 28 closing price of €56.10

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 32 three months ago

Reuters Recommended Reads

• Sept 28 - Thyssenkrupp steel unit aims to triple core profit in overhaul

• Sept 28 - Suedzucker lifts full-year guidance on higher biofuels demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)