EnviTec Biogas AG reported first-half 2026 results that met expectations, with revenues and total output rising year-over-year even as earnings declined due to regulatory changes and market costs. The company also secured key renewable energy awards and outlined a major investment program that shifts its focus toward biomethane, a move that could reshape its long-term business model.
For the six months ended June 30, 2026, EnviTec generated revenues of EUR 169.2 million, up from EUR 148.4 million in the prior-year period. Total output, including plants under construction, increased to EUR 182.9 million from EUR 164.9 million. The gains were driven by higher revenues in Own Plant Operation and increased capacity utilization in Plant Construction. However, EBITDA 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 primarily from higher costs of placing bio-LNG on the market and the retroactive abolition of double counting for advanced biofuels, effective January 1, 2026. Additionally, many Plant Construction projects had not yet been finally invoiced, delaying profit recognition under German commercial law.
Segment performance varied. Own Plant Operation, the largest segment, saw revenues rise to EUR 123.4 million from EUR 107.1 million, though its operating result fell to EUR 14.4 million from EUR 20.6 million due to the double-counting abolition and increased market costs. Service segment revenues declined to EUR 23.8 million from EUR 26.5 million, with an operating loss of EUR 3.3 million compared to a profit of EUR 1.3 million, mainly from consolidation effects. Plant Construction showed a strong recovery: total output doubled to EUR 36.5 million, revenues climbed to EUR 22.0 million, and its operating loss narrowed to EUR 6.8 million from EUR 11.7 million. The segment's order backlog stood at EUR 143.1 million, with EUR 112.1 million from international projects, particularly in Sweden and Spain.
A pivotal development was EnviTec's success in the Federal Network Agency's biomass auction in June 2026, securing awards for around 16 MW of electrical capacity. This ensures a substantial portion of its electricity portfolio in Own Plant Operation remains supported for another 12 years under the EEG framework. The company plans additional investments of approximately EUR 100 million by 2029 for construction, refurbishment, and conversion of further plants to bio-LNG production. According to CFO Jörg Fischer, the first half progressed in line with expectations, and with a strong equity ratio of 45.2% and cash reserves of EUR 26.8 million, EnviTec has a solid financial foundation for its new investment program. Fischer also noted that pricing for long-term supply and quota contracts is developing constructively after the double-counting abolition.
CEO Olaf von Lehmden emphasized that the EEG awards and investment program accelerate the transition from electricity to biomethane production. He highlighted strong international demand in Plant Construction and noted that Germany's Building Modernisation Act gives biomethane a statutory outlook in the heating market for the first time. Von Lehmden called for swift, binding rules for the green gas quota and reliable, technology-neutral conditions for gas grid connections, stating that the German biogas industry can meet the additional initial demand of approximately 2.4 TWh and the expected market ramp-up.
EnviTec confirmed its full-year 2026 forecast of total output or revenues between EUR 330 million and EUR 370 million, with EBT between EUR 5 million and EUR 15 million. The company expects rising revenues and earnings in 2027. The full interim report is available at https://www.envitec-biogas.com/company/investor-relations/ir-reports, and the original release can be viewed on www.newmediawire.com.
