2G Energy Raises 2027 Sales Forecast After Q3 Orders Exceed €400 Million

2G Energy raised its 2027 sales forecast after saying third-quarter order intake again exceeded €400 million, with a 275 MW data-center contract providing the biggest lift. The German maker of decentralized power systems now expects 2027 revenue of €600 million to €650 million, up from its previous range of €570 million to €620 million.

The company also issued its first sales forecast for 2028, putting revenue at €750 million to €850 million, and maintained its 2026 outlook at the upper end of the existing range. The change shows how quickly large data-center orders are increasing the scale of 2G’s pipeline, even as first-half profitability remained well below the prior-year level.

In its September 29 corporate update, 2G said order momentum was not limited to data centers. A previously announced large mining order was finalized in July, while several traditional markets and business lines recorded double-digit growth rates. The company also said its heat-pump business was meeting expectations and could generate as much as €30 million of order intake in 2026.

A 275 MW data-center order changes the scale of the backlog

The largest disclosed component of the quarter was a 275 MW order from Energy Vault Holdings for power-generation systems intended for U.S. AI infrastructure. 2G said the order is larger, in megawatt terms, than its total production during the entire 2025 financial year, illustrating why data-center demand is now having an outsized effect on the company’s medium-term sales expectations.

2G said it recognizes large orders in its order intake only after a contract is signed and the customer has made an advance payment, which is normally 20% to 30% of the order value. In this case, the customer made what 2G described as a significant advance payment in the mid-double-digit millions of euros. Part of that cash has already been used to secure the supply chain for the project.

Energy Vault said earlier in September that it had secured and fully contracted 275 MW of reciprocating-engine generation capacity using Rolls-Royce MTU technology. The customer said deliveries are expected to begin in the second half of 2027 and continue through the first half of 2028, with the equipment intended to support its Powered Land projects for hyperscale AI and high-performance computing campuses.

The new order follows 2G’s move into the data-center power market as a dedicated growth area. Its systems are designed to provide dispatchable onsite generation for customers that need reliable capacity before, or in addition to, a conventional grid connection. That is particularly relevant for large computing projects, where access to power and equipment lead times can determine when a site can begin operating.

2027 guidance rises as 2G maps out a bigger 2028

Management raised its 2027 revenue range to €600 million to €650 million from €570 million to €620 million. If 2026 revenue reaches the €490 million level that 2G now expects at the top of this year’s guidance, the new range would represent annual growth of roughly 22.5% to 33%. The company continues to expect its EBIT margin to rise above 11% from 2027.

For 2028, 2G is forecasting revenue of €750 million to €850 million for the first time. Management said the planned increase would be supported by a new assembly hall at its Heek site that is scheduled to enter service by the end of 2027, together with a gradual increase in staffing. The upper end of the 2028 range would put annual sales more than twice the €398 million reported for 2025.

The company left its current-year framework unchanged. It still expects 2026 revenue within a €440 million to €490 million range and now says it remains realistic to finish at the upper end. The EBIT-margin target is 9.5% to 10.5%. 2G said deliveries from its first major data-center order are due to begin in the fourth quarter, with revenue recognized progressively as individual power units reach the United States.

Another support for the second half is Germany’s biomass market. 2G said revenue recognition from orders tied to the country’s biomass support package is gathering pace. That gives the company a second source of growth alongside data centers as it works through a much larger order book.

First-half earnings show the execution challenge behind the forecast

The growth outlook contrasts with a subdued first half. Total output for the six months was €184.0 million, down 4.7% from €193.0 million a year earlier. Revenue from power-plant equipment fell 36.4% to €52.7 million from €82.7 million, largely because the prior-year period included unusually high short-term business connected with Ukraine. Final invoices related to Ukraine were €1.1 million in the latest half, compared with €33.7 million a year earlier.

Service revenue was more resilient at €83.5 million, down 4.3% from €87.2 million, and 2G said the second quarter had already moved above the comparable prior-year level as disruptions linked to its ERP changeover eased. The higher service mix helped reduce the material-cost ratio to 58.3% from 63.2%, but personnel expense increased 17.3% to €49.1 million as acquisitions were consolidated and staffing expanded ahead of expected growth.

Those costs, along with higher depreciation, left first-half EBIT at just €0.8 million versus €5.7 million a year earlier. The EBIT margin fell to 0.6% from 3.3%. Liquidity, however, improved sharply to €29.3 million at June 30 from €0.1 million at the end of 2025, giving the company more room as it begins converting large orders into production and deliveries.

The next detailed check on that conversion will come soon. 2G is scheduled to publish its full half-year report on October 15 and its third-quarter revenue and EBIT figures on November 23. Those releases should show more clearly whether the order surge is beginning to translate into the production volume and margins embedded in management’s higher medium-term forecasts.