2G Energy AG increases factory output to EUR 81.0 million in Q1 (previous year: EUR 60.2 million)

• Net sales of EUR 68.5 million up 40.8% year on year (EUR 48.7 million)
• Order backlog remains at peak level of around EUR 190 million (previous year: EUR 190 million)
• EBIT at EUR -0.2 million almost at breakeven (previous year: EUR -0.8 million)
• 2G decides to develop its own series of high-capacity heat pumps from 200 kWth

Heek, May 25, 2023 - 2G Energy AG (ISIN DE000A0HL8N9), one of the world’s leading manufacturers of Combined Heat and Power (CHP) systems, boosted sales in the first quarter by 40.8% to EUR 68.5 million (previous year: EUR 48.7 million). The sharp increase in final billings for new systems that had been evident for many months, continued into the new year, reaching EUR 31.1 million in the past quarter (previous year: EUR 17.1 million, + 82%).  Service sales grew by around 19% to EUR 37.4 million (previous year: EUR 31.4 million).

At the same time, the order intake recovered from March onwards with the result that the order book is at a very high level of around EUR 190 million in spite of the sales increase.

“Since investors around the world noticeably regained trust in a secure supply of biogas and natural gas, and since price reductions for both renewable and fossil gases have also been recorded, the order intake has risen to a level that guarantees our growth strategy of 10% plus the inflation rate for the foreseeable future”, CEO Christian Grotholt explains. “Only German customers are still partially adopting a wait-and-see attitude, which is probably directly related to the heated political discussion around the draft of the Buildings Energy Act."

EBIT also showed positive growth in the first quarter, approaching breakeven at EUR -0.2 million (previous year: EUR -0.8 million). “The first quarter is traditionally the weakest quarter for sales and earnings which means that a slightly negative first quarter result, but one that was still close to breakeven, was definitely on the cards”, states CFO Friedrich Pehle. “Net Sales, output and order backlog have reached peak levels for a first quarter, which gives us confidence for the rest of the year.”

The Management Board continues to expect annual sales of EUR 310 to 350 million in 2023, with a margin of 6.5 to 8.5%.

2G decides to develop its own series of high-capacity heat pumps from 200 kWth

In the domestic market of Germany, practically all municipalities are to be obliged by federal law to draw up municipal heating plans. As a result of this municipal heating planning, 2G expects demand for high-capacity heat pumps to rise.

In recent years, 2G has already installed multiple high-capacity heat pumps together with CHP systems on behalf of customers and integrated them with its proprietary CHP control system.  In view of the expected increasing and stable demand, 2G has decided to establish its own series of high-capacity heat pumps which, while the development will be based on already known components and proven assemblies.

“Besides the very high proportion of common parts, such as the container, heat exchanger, heat accumulator, pumps, valves, pipes, etc., we see considerable synergy effects in the area of project management and service”, CTO Frank Grewe elucidates. “Ultimately, we are complying with a widely expressed request from customers.”

The first units from series production are set to be delivered and installed for the 2024/25 heating season.

2G company portrait
The 2G Energy AG Group is an internationally leading manufacturer of decentralized energy supply systems. With the development, production and technical installation as well as digital grid integration, the company offers comprehensive solutions in the growth market for highly efficient CHPs. After-sales and maintenance services comprise an important additional performance criterion. The product range especially includes CHP modules in the 20 kW and 4,500 kW range for operation utilizing hydrogen, natural gas, biogas as well as other lean gases. Worldwide, more than 8,000 installed 2G systems in various applications supply electrical and thermal energy to a broad spectrum of customers including companies in the housing industry, agriculture, commercial and industrial companies, public energy utilities, and municipal and local government authorities.

2G benefits from global long-term trends that make efficient and decentralized energy solutions ever more important. These trends include not only rising energy demand but also the need to conserve natural resources. The parallel generation of electrical and thermal energy makes CHP technology more efficient and climate-compatible than conventional power conversion methods, especially when, for example, hydrogen of regenerative origin is harnessed as fuel. 2G power plants can offset wind and solar power plant production fluctuations as required, thereby forming a backbone technology for future supply concepts, especially in the deployment of hydrogen engines. As a consequence, 2G’s customers derive consistent benefits from economically and ecologically highly beneficial innovations that rapidly pay for themselves and create extensive added values.

2G is consistently expanding its technological leadership through continuous research and development work, both in power plant technology for hydrogen, natural gas and biogas applications, as well as in specific software development. Moreover, in the energy revolution’s future electricity market design, the digitalization that 2G consistently implements forms an indispensable system-relevant element in combination with solar, wind, biogas and natural gas producers, and creates a high barrier to market entry for competitors.

2G employs more than 850 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.

2023 calendar dates
June 13                 Ordinary AGM, Ahaus
September 07       Half-year figures as at June 30, 2023
September 12       Quirin Small- und MidCap Conference, Copenhagen
November 27        Q3 key figures and business trends
November 27-29   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: [email protected]
Internet: www.2-g.de