2G Energy AG Announces Significant Earnings Growth in 2023

2G Energy AG reported a significant increase in Earnings Before Interest and Taxes (EBIT) for the fiscal year 2023, showing a boost of 26% to EUR 27.6 million, up from EUR 22.0 million in the previous year. The EBIT margin also saw improvement, rising from 7.0% to 7.6%. This growth is attributed to a 22% increase in the new plants business which generated around EUR 200 million and an 11% uptick in service business revenue, reaching EUR 165.1 million.

The company, a leading manufacturer of combined heat and power (CHP) systems and a producer of heat pumps, raised its lower sales revenue forecast for the upcoming year to EUR 360 million, anticipating continued positive financial terrain with an EBIT margin expected to be between 8.5% and 10.0% for 2024. Notably, the new plants business in Germany marked the highest growth rate, rebounding strongly by 48.6% to EUR 123.1 million. Conversely, the new plants business in Anglo-Saxon territories experienced a temporary decline.

The report further detailed a normalization in the cost of materials ratio and a moderate increase in personnel expenses due to strategic investments and a significant uptick in staffing levels to support the company’s strategic projects, including entering the heat pump market and updating its IT and ERP systems. This approach is anticipated to fuel future growth and ensure project success.