EnviTec Biogas AG reported first-half 2026 results that met management expectations, with revenues rising to EUR 169.2 million from EUR 148.4 million a year earlier, while earnings declined as anticipated. The company confirmed its full-year forecast for total output or revenues of EUR 330 million to EUR 370 million and earnings before taxes of EUR 5 million to EUR 15 million. The results, released via NEWMEDIAWIRE, underscore the company's ability to grow sales even as regulatory changes pressure profitability.
Earnings before interest, taxes, depreciation and amortization fell to EUR 21.4 million from EUR 26.3 million, and earnings before taxes dropped to EUR 4.4 million from EUR 10.2 million. The decline stemmed largely from higher costs of placing bio-LNG on the market and the retroactive abolition of double counting for advanced biofuels as of January 1, 2026. Many plant construction projects also remained uninvoiced at mid-year under German commercial law, delaying profit recognition. Earnings per share came in at EUR 0.21, down from EUR 0.55.
Own Plant Operation, the group's largest segment, increased revenues to EUR 123.4 million from EUR 107.1 million, but its operating result fell to EUR 14.4 million from EUR 20.6 million. The Service segment posted revenues of EUR 23.8 million and an operating loss of EUR 3.3 million, mainly due to consolidation effects. Plant Construction showed a sharp recovery, with total output doubling to EUR 36.5 million and its operating loss narrowing to EUR 6.8 million from EUR 11.7 million. The segment's order backlog stood at EUR 143.1 million, of which EUR 112.1 million relates to international projects, particularly in Sweden and Spain.
The most consequential development was EnviTec's success in the Federal Network Agency's June 2026 biomass auction, where it secured awards for around 16 MW of electrical capacity. This guarantees renewable energy support for a substantial portion of its electricity portfolio for another 12 years. EnviTec plans to invest approximately EUR 100 million by 2029 to build and refurbish plants and convert additional facilities to bio-LNG production. This investment program reinforces the company's strategic shift from electricity generation to biomethane, a move that could reshape its revenue mix and hedge against future subsidy changes.
CFO Jörg Fischer noted that while the abolition of double counting and bio-LNG marketing costs weigh on this year's results, the company remains clearly profitable and sees constructive pricing trends for long-term supply and quota contracts. The equity ratio improved to 45.2%, and cash and cash equivalents rose to EUR 26.8 million, providing a solid financial base for the investment program.
CEO Olaf von Lehmden highlighted that the EEG awards and investment plan accelerate the transition of Own Plant Operation toward biomethane, supported by a stable EEG foundation. He also pointed to strong international demand in Plant Construction and the Building Modernisation Act, which gives biomethane a statutory role in the German heating market for the first time. Von Lehmden called for swift, binding rules on the green gas quota and technology-neutral conditions for gas grid connections, noting that the German biogas industry can meet additional initial biomethane demand of roughly 2.4 TWh and the expected market ramp-up.
For investors and industry observers, the half-year report signals that EnviTec is navigating a difficult regulatory environment while positioning itself for long-term growth. The full interim report is available at https://www.envitec-biogas.com/company/investor-relations/ir-reports.
