EnviTec Biogas AG (ISIN: DE000A0MVLS8) reported first-half 2026 results that met management expectations, with revenues and total output increasing year-over-year even as earnings declined due to anticipated market changes. The company also outlined a significant strategic pivot toward biomethane production, backed by a €100 million investment program through 2029. The results and strategic update, first announced via NEWMEDIAWIRE, highlight both the challenges and opportunities facing Germany's biogas sector.
For the first six months of 2026, EnviTec generated revenues of EUR 169.2 million, up from EUR 148.4 million in the prior-year period. Consolidated total output reached EUR 182.9 million, compared with EUR 164.9 million in H1 2025. The increase was driven by higher revenues in the Own Plant Operation segment and greater capacity utilization in Plant Construction. However, EBITDA fell to EUR 21.4 million from EUR 26.3 million, and earnings before taxes (EBT) dropped to EUR 4.4 million from EUR 10.2 million. Consolidated net income was EUR 3.1 million, or EUR 0.21 per share, down from EUR 8.1 million and EUR 0.55 per share a year earlier.
The earnings decline stemmed primarily from two factors: higher costs for 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 as of June 30, 2026, delaying profit recognition under German commercial law.
The Own Plant Operation segment, EnviTec's largest, saw revenues rise to EUR 123.4 million from EUR 107.1 million, though its operating result (EBT) fell to EUR 14.4 million from EUR 20.6 million due to the double-counting abolition and increased market placement costs. The Service segment reported revenues of EUR 23.8 million and an EBT of EUR -3.3 million, mainly due to consolidation effects. Plant Construction showed a marked recovery, with total output doubling to EUR 36.5 million and EBT improving to EUR -6.8 million from EUR -11.7 million.
A key development with long-term implications was EnviTec's success in the Federal Network Agency's biomass auction in June 2026, securing awards for plants with around 16 MW of electrical capacity. This provides renewed security for a substantial part of the electricity portfolio in Own Plant Operation for another 12 years. The company plans additional investments of around EUR 100 million by 2029 for construction, refurbishment, and conversion of further plants to bio-LNG.
CFO Jörg Fischer commented, "The first half of 2026 progressed in line with our expectations. The retroactive abolition of double counting and the costs of placing bio-LNG on the market are weighing noticeably on us this year, but we remain clearly profitable. In Own Plant Operation, we are benefiting from expanded production capacity and significantly higher GHG quota sales volumes."
CEO Olaf von Lehmden added, "With the EEG auction awards and the subsequent investment programme we are accelerating the transition of Own Plant Operation from electricity to biomethane production, supported by a solid EEG foundation. In Plant Construction, we continue to see strong demand in international markets, while the Building Modernisation Act gives biomethane a statutory outlook in the German heating market for the first time."
The company confirmed its full-year 2026 forecast of total output between EUR 330 million and EUR 370 million and EBT between EUR 5 million and EUR 15 million. EnviTec expects rising revenues and earnings in 2027. The full interim report is available at https://www.envitec-biogas.com/company/investor-relations/ir-reports.
The company's equity ratio stood at 45.2% as of June 30, 2026, up from 40.9% at year-end 2025, and cash and cash equivalents increased to EUR 26.8 million. The strategic shift toward biomethane, supported by EEG awards and a strong balance sheet, positions EnviTec to capitalize on growing demand for climate-neutral fuels and the evolving German heating market. As von Lehmden noted, the industry can meet the additional initial demand for biomethane of approximately 2.4 TWh, provided swift, binding rules for the green gas quota and reliable conditions for gas grid connections are established. The original release is available on www.newmediawire.com.
