2G Energy recording all-time high order backlog at the end of August

2G Energy recording all-time high order backlog at the end of August

• Strong order intake continuing, mainly driven by international business
• EU adopts new wastewater directive and creates sustainable investment requirements for sewage gas CHP plants
• Group sales of EUR 131.2 million in the first half of 2024 slightly below the previous year (EUR 135.5 million, -3.2%)
• The Management Board confirms forecast for the current year and raises the lower forecast limit for 2025 to EUR 410 million

Heek, August 22, 2024 - 2G Energy AG (ISIN DE000A0HL8N9), one of the leading international manufacturers of combined heat and power (CHP) systems as well as heat pumps, is continuing its long-term growth course and recording an order book position in excess of EUR 220 million at the end of August, thereby once again reaching the previous high of EUR 220.8 million at the end of June 2022.

Strong order intake continuing, mainly driven by international business

The strong order intake is due in particular to the continuously expanding internationalization of 2G's business, as the escalating complexity of energy policy in Germany is prolonging the wait-and-see attitude of many potential customers. By contrast, CHP technologies have recently been sold successfully in Eastern Europe, the USA and once again in Asia.

"Our early commitment to gaining expertise and a sound reputation in all gas types and our timely decision to establish a partner concept internationally is obviously paying off," as CEO Christian Grotholt stated. "In Germany, the latest announcements by the Federal Minister of Economics make us confident that the strategic significance of biogas use in the electricity and heating transition is now being clearly recognized in the final instance. As a result, the number of orders in Germany will increase again."

EU adopts new wastewater directive and creates sustainable investment demand in sewage gas CHP plants

The directive on the treatment of municipal wastewater adopted by the EU Parliament in the second quarter of 2024 envisages the introduction of a fourth treatment stage for numerous wastewater treatment plants in Europe, which will lift the energy consumption of the respective wastewater treatment plants by 5-30% on average. In addition, the sector must incrementally become energy-neutral at the national level by 2045, which will massively promote the use of CHP units for the utilization of sewage gas. 2G now expects a steady increase in incoming orders for sewage gas CHP units, particularly from regions that have previously not undertaken the efforts required in Germany to treat municipal wastewater. The first significant tender with explicit reference to the new EU directive was recently gained in Southern Europe (order volume: approx. EUR 5 million).   

Group sales in the first half of the year (EUR 131.2 million) slightly below the previous year (EUR 135.5 million, -3.2%)

Customer delays on construction sites have eased due to improved materials supplies, which is reflected in the vibrant sales trends seen in the fourth quarter of 2023 and the first quarter of 2024. However, bottlenecks specific to the energy transition remain, such as the availability of transformers, skilled employees and grid connection permits, etc. On the other hand, customers are now planning firmly on the fact that CHP units from 2G typically do not cause any project delays. However, the exogenous waiting times are factored in by the customers for the desired delivery date for CHP units, resulting in considerably longer project durations.

As a result of these longer project durations planned by customers, production and delivery are delayed in some cases – albeit temporarily. As a result, sales of CHP units and heat pumps fell to EUR 53.2 million in the first half of 2024 (previous year: EUR 58.7 million, -9.3 %). However, as the first half of the year, with the end of the heating period, is traditionally the much weaker half-year for CHP deliveries, the continued good performance of the service business had a compensatory effect. Overall, a slight decline in sales of 3.2% to EUR 131.2 million was recorded in the first half of the year.  

Sales break down by regions as follows in the first half of 2024:

* Rounding differences apply.

The Management Board is confirming forecast for the current year and raising the lower forecast limit for 2025 to EUR 410 million

In view of the order book position and the continued growth in the service business, the Management Board is confirming the forecast already communicated for the current year (group sales of EUR 360 to 390 million in connection with an EBIT margin of 8.5 to 10.0%).

In view of the stable order intake at a high level, the Management Board is anticipating sales of EUR 410 to 450 million for the coming year (previously EUR 390 to 450 million).

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 2,6000 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.

Calendar 2024
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