Energiekontor confirms its guidance in the morning and cuts it by 88 percent in the evening

Energiekontor expressly confirmed its 2026 profit guidance with the half year report on Thursday morning. On the evening of the same day the wind and solar park developer from Bremen cut it sharply.

Instead of pre tax earnings of 40 to 60 million euros, the company now expects only five to ten million euros. Analysts polled by the company had expected around 50 million euros.

The short version

• For 2026 Energiekontor now expects pre tax earnings of five to ten million euros instead of 40 to 60 million euros.
• The share lost 25.5 percent over the week and stood at 27.30 euros around midday on Friday.
• DZ Bank cut its price target from 59 to 27 euros and moved its rating from buy to hold.

A legal dispute over a power line

The trigger is a delay at three Scottish wind farm projects. Two of them are in a sales process and were, according to the company, a central part of the earnings plan for 2026.

Behind this stands a running legal case against the permit that grid operator Scottish Power Transmission received for building an overhead power line. That line is needed for the grid connection. Until a court decision, which is only expected in the first half of 2027, the work cannot continue.

The earnings contributions planned for this year are therefore likely to fall away and, on the current view, will mostly slide into the coming financial year. Whether parts of the planned sales can still be done on a reduced scale is not foreseeable at present, the company says.

An analyst calls the timing hard to follow

The criticism is less about the cut than about its timing. In Thursday morning's half year report management had expressly confirmed the range of 40 to 60 million euros and tied it, among other things, to planned project sales in the United Kingdom. Only after publication did the new developments around the grid connection dates emerge.

Analyst Thorsten Reigber of DZ Bank called the release after the close, only hours after the half year report, extremely unfortunate timing that was hard to follow.

DZ Bank cut its price target from 59 to 27 euros and moved its rating from buy to hold. The target of this house has therefore more than halved.

In investor forums the debate centred above all on the credibility of management, according to reports, and on the question of how sustainable the business model is.

A loss already in the first half

The guidance cut hits a company that is writing red figures anyway. In the first half a loss after tax of 5.3 million euros was booked.

The share price was weak before that too. In mid May a share still cost more than 50 euros. The slide broke through the mid March low at a good 30 euros. Since the turn of the year the discount comes to around a quarter, and on Friday the stock was the clear laggard in the small cap index SDax.

On Monday the decline continued. The loss of almost seven percent the day before was followed by a drop of 17.6 percent.

The case shows a difficulty that is typical for project developers in this field. Their result does not hang on running the installations, but on whether project sales close within a given financial year. If a single sale moves past the balance sheet date, the whole earnings contribution moves with it. At Energiekontor two projects were enough.

The company was founded in 1990 and listed in 2000.

Frequently asked questions

Why did Energiekontor cut its 2026 guidance

Three wind farm projects in Scotland are delayed, two of them are in a sales process and were central to the earnings plan. A legal case against the permit for an overhead power line is blocking the grid connection they need. Instead of 40 to 60 million euros the company now expects pre tax earnings of five to ten million euros.

How far has the Energiekontor share fallen

Over the week the loss came to 25.5 percent, within a trading range between 35.50 and 29.55 euros. Around midday on Friday the stock stood at 27.30 euros, and on Monday another drop of 17.6 percent followed. In mid May a share still cost more than 50 euros.

Why do analysts criticise the timing of the announcement

On Thursday morning management had expressly confirmed the range of 40 to 60 million euros in the half year report and cut it on the evening of the same day. Analyst Thorsten Reigber of DZ Bank called the release after the close extremely unfortunate timing that was hard to follow. DZ Bank cut its price target from 59 to 27 euros.

When can the Scottish projects continue

A court decision in the case against the permit for the overhead power line is only expected in the first half of 2027. Until then the work is on hold, and the earnings contributions planned for 2026 will mostly slide into the coming financial year on the company's view. Whether parts of the sales can be done on a reduced scale is not foreseeable at present.

This analysis is for information only and is not investment advice.