Challenging environment led to shifts in revenue and earnings in 2024 – growth expected again in 2025

hep global GmbH: Challenging environment led to shifts in revenue and earnings in 2024 – growth expected again in 2025

Güglingen, 30 June 2025 – hep global GmbH, an internationally active solar specialist, experienced a challenging fiscal year 2024. Due to the generally difficult market environment and increased uncertainty in the United States as a result of the election year there, several planned project sales were postponed from 2024 to 2025. As a result, consolidated revenue for 2024 declined from EUR 73.3 million to EUR 43.5 million, falling below the most recent forecast range of EUR 50 to 65 million. Total operating performance reached EUR 46.5 million, compared to EUR 91.0 million in the previous year. For the fiscal year 2025, revenue is expected to increase to between EUR 45 million and EUR 65 million, with significant earnings growth.

The substantial project postponements in 2024 were also reflected in earnings development. Earnings before interest and taxes (EBIT) fell from EUR 3.1 million to EUR -4.8 million, which is within the latest forecast range of EUR -5 to +1 million. Consolidated result for the year amounted to EUR -9.1 million in 2024, compared to EUR 1.8 million in the previous year.

Strategic countermeasures initiated

In view of the challenging environment, hep initiated various strategic countermeasures and implemented them consistently in the reporting year. These included, in particular, a focus on greenfield project development in stable core markets such as Europe, Canada and Japan, the expansion of sales channels through managed accounts, the securing of long-term, recurring income through the gradual build-up of its own portfolio, and organisational adjustments to the changed market conditions. The first positive effects of these measures will already be realised in the fiscal year 2025 and will be further enhanced in subsequent years.

Outlook for 2025 with revenue and earnings growth

hep expects a more positive business development in 2025 and anticipates corresponding increases in revenue and earnings against the background of catch-up effects from postponed project sales in 2024. The forecast predicts an increase in consolidated revenue to between EUR 45 and 65 million. EBIT is also expected to rise significantly to between EUR 5 and 15 million. At the same time, the company plans to continuously implement and further expand its own project pipeline. The global pipeline currently comprises a project volume of 4.5 GWp, of which around 0.7 GWp is already ready to build. In Europe, Japan and Canada, projects at various stages of maturity with a volume of around 3.5 GWp are currently under development and are to be sold off gradually by the end of 2026.

The USA as a long-term cornerstone of the growth strategy despite ongoing uncertainties

The PV investment market in the USA is currently characterised by considerable uncertainty, including the threat of tariffs and reforms to subsidy programmes. These are generally leading to project delays and, in hep’s case, to a delay in the receipt of milestone payments and transaction proceeds for solar parks that have already been sold. As a result, capital commitment is increasing and there is a need for prolongation of subordinated project financing, which will be resolved by 2026.

“The upheaval in the US caused by the election and the new administration has put us all to the test – not least our investors. However, firstly, we expect a clear normalisation in the medium term and are very optimistic that we will be able to gradually catch up on project sales. Secondly, we remain firmly convinced that the US will continue to be an important pillar of our growth strategy in the long term,” explains Thomas Tschirf, CFO of hep global GmbH. “We are particularly encouraged by the attractive growth potential and the continuing high demand for affordable solar energy and large-scale PV systems, especially due to the significant additional demand from data centres and digitalisation. The strategic measures already being implemented should enable us to exploit this growth potential.”

About hep solar
The hep solar Group is the solar specialist for projects and investments from a single source. For over 15 years, the owner-managed family business from Baden-Württemberg has been developing, building, operating and financing solar parks all over the world, but primarily in Germany, Japan and North America. As a future-oriented company, the Group combines expertise in the business areas of investment, projects, hep yolar and PV plants – thus covering the entire solar energy value chain from start to finish: from financing to project development and construction to long-term operation. The hep solar group employs over 200 people worldwide with branches in Germany, Japan, the USA and Canada.

Press contact:
Evelyn Kilinc
Römerstraße 3
D-74363 Güglingen
P +49 7135 93446-759
E presse@hep.global
www.hep.global

Financial press contact:
Frank Ostermair, Linh Chung
Better Orange IR & HV AG
Landshuter Allee 10
D-80637 München
P +49 89 8896906-25
E linh.chung@linkmarketservices.eu
www.linkmarketservices.eu