hep global GmbH, an internationally active solar specialist, experienced a challenging fiscal year in 2024. Due to the generally difficult market environment and increased uncertainty in the U.S. resulting from the election year there, several planned project sales were postponed from 2024 to 2025. Consequently, consolidated revenue for 2024 decreased from €73.3 million to €43.5 million, falling below the most recent forecast range of €50 to €65 million. Total revenue reached €46.5 million, compared to €91.0 million in the previous year. For the 2025 fiscal year, revenue is expected to increase to €45 to €65 million, with significant earnings growth anticipated.
hep global GmbH: A challenging environment led to delays in revenue and earnings in 2024 – growth is expected to resume in 2025
The significant project delays in 2024 were also reflected in the company’s earnings performance. Earnings before interest and taxes (EBIT) fell from €3.1 million to €-4.8 million, falling within the most recent forecast range of €-5 million to €1 million. The consolidated net income for 2024 amounted to -€9.1 million, compared to €1.8 million in the previous year.
Strategic countermeasures initiated
In light of the challenging environment, hep initiated various strategic countermeasures and consistently implemented them during the reporting year. These included, in particular, a focus on greenfield project development in stable core markets such as Europe, Canada, and Japan; the expansion of sales channels through managed accounts; the securing of long-term, recurring revenue through the gradual build-up of a proprietary portfolio; and organizational adjustments to the changed market conditions. The first positive effects of these measures will already be realized in fiscal year 2025 and will continue to strengthen in subsequent years.
Outlook for 2025 with revenue and earnings growth
hep expects a more positive business performance in 2025 and anticipates corresponding increases in revenue and earnings, driven by catch-up effects from project sales carried over from 2024. The forecast projects an increase in consolidated revenue to between 45 and 65 million euros. EBIT is also expected to rise significantly to between 5 and 15 million euros. At the same time, the company plans to continuously implement and further expand its own project pipeline. Currently, the global pipeline comprises a project volume of 4.5 GWp, of which approximately 0.7 GWp is already ready for construction. In Europe, Japan, and Canada, projects at various stages of maturity with a volume of approximately 3.5 GWp are currently under development and are to be sold off gradually by the end of 2026.
The U.S. as a Long-Term Cornerstone of the Growth Strategy Despite Persistent Uncertainties
The PV investment market in the U.S. is currently characterized by significant uncertainties, including the threat of tariffs and reforms to subsidy programs. These generally lead to project delays and, specifically for hep, to a delayed receipt of milestone payments and transaction proceeds from solar parks that have already been sold. As a result, capital is being tied up, and there is a need to extend subordinated project financing, which will be resolved by 2026.
“The turmoil in the U.S. caused by the election and the new administration has put us all to the test—not least our investors. But first, we expect a clear return to normalcy in the medium term and are very optimistic that we will be able to gradually make up for the lost project sales. Second, we remain firmly convinced that the U.S. will continue to be a key pillar of our growth strategy in the long term,” explains Thomas Tschirf, CFO of hep global GmbH. “We are particularly encouraged by the attractive growth potential there, as well as the sustained high demand for affordable solar energy and large-scale PV systems, especially due to the significant additional demand from data centers and digitalization. The strategic measures already being implemented are intended to enable us to capitalize on this growth potential.”