EnviTec Biogas weathered a bruising regulatory shake-up in 2025, posting resilient earnings growth in its core operations even as sweeping German policy changes hammered parts of its fast-growing bio-LNG business.
The German biogas giant said its flagship Own Plant Operation division powered ahead during the fiscal year, with revenues jumping 15.4% to EUR 221.2 million and total utput surging 27.5% to EUR 255.6 million. The gains were fuelled by higher production volumes, stabilised greenhouse gas quota prices and the acquisition of LIQVIS GmbH early in 2025.
But the company was forced to absorb an approximately EUR 8 million non-cash provision after Germany scrapped double counting for GHG quotas — a move that sharply weakened the economics of existing bio-LNG contracts.
The hit dragged Group earnings before taxes down to EUR 26.0 million from EUR 44.0 million a year earlier, while net profit fell to EUR 16.7 million from EUR 29.8 million. Earnings per share dropped to EUR 1.12 from EUR 2.01.
Despite the pressure, EnviTec insisted its long-term strategy remains intact.
EnviTec Biogas AG CFO Jörg Fischer said: “Despite a challenging market environment and regulatory burdens, fiscal year 2025 was solid for EnviTec and demonstrated that our strategic investments in recent years have permanently broadened the earnings base of our business model.
"Even though the abolition of double counting is currently weighing on us, we will continue to operate profitably overall. Own Plant Operation is maintaining its strong earnings position, while Plant Construction is benefiting from high capacity utilisation and well-filled order books. This is why, despite the subdued performance in the current fiscal year, we remain confident overall about the future.”
The company’s Plant Construction business suffered a sharp downturn in the first half of the year, with segment revenues collapsing to EUR 45.5 million from EUR 95.6 million in 2024. However, momentum rebounded strongly in the second half as international demand accelerated.
By year-end, EnviTec’s construction order book had climbed nearly 15% to EUR 148.1 million, with international projects accounting for EUR 117.1 million. New orders flowed in from Slovakia, Lithuania, Belgium, Spain and Sweden.
The company also deepened its push into low-carbon transport fuels. The acquisition of LIQVIS opened a direct route to market for bio-LNG from EnviTec’s own plants, while a new supply deal with ferry operator TT-Line marked the company’s first entry into the maritime sector.
Still, executives warned that Germany’s rapidly shifting policy environment is undermining investment confidence.
CEO Olaf von Lehmden said: “The abolition of double counting, agreed in May 2026 with retroactive effect from 1 January 2026, hits us directly and undermines the investments we made in expanding our bio-LNG value chain in recent years, in the expectation that the European regulatory crediting mechanisms would apply.
"Moreover, the shorter capping period for grid connection of new plants envisaged in the draft EnWG legislation fails to meet the needs of reliable investment planning. At the same time, there are also definite bright spots: concretised plans for the Building Modernisation Act provide, for the first time, a genuine demand outlook for biomethane in the heating market, and the raising of the GHG quota is boosting demand for climate-friendly fuels.
"On the strength of increased production capacities and a well-filled order book in Plant Construction, we believe we are well positioned to return to sustainable growth in the coming year. Reliable regulatory framework conditions, especially in Germany, remain a basic prerequisite for us.”
The company ended 2025 with total assets of EUR 466.5 million and an equity ratio of 40.9%, while cash reserves stood at EUR 25.7 million.
In a sign of caution, EnviTec’s management and supervisory boards will recommend no dividend payment for 2025 as the company braces for another difficult year.
For 2026, EnviTec forecasts revenues or total output between EUR 330 million and EUR 370 million, but expects earnings before taxes to slide further to between EUR 5 million and EUR 15 million as the fallout from Germany’s GHG quota overhaul continues to ripple through the market.
Even so, the company says it expects revenues and earnings to rebound in 2027, betting that rising biomethane demand and a bulging international project pipeline will outweigh the regulatory turbulence.
