HEP Global Returns to Profit After Ditching Investment Business
Published on 07/01/2026 at 21:08 | Redaktion boerse-global.de
HEP Global has swung back into the black after a decisive strategic overhaul. The Güglingen-based solar developer jettisoned its investment arm at the end of 2024 to focus solely on photovoltaic projects in Germany and Poland, and the move is already delivering tangible results. The company’s audited consolidated financial statements for 2025 show a dramatic improvement in profitability, sending its share price sharply higher.
Revenue hit €45.8 million, with €41.9 million coming from project development – nearly double the previous year’s figure. Operating profit (EBIT) rebounded from a loss of €4.8 million to a gain of €10.8 million. Net income came in at €2.9 million, while operating cash flow generated €8.1 million. Inventories for ongoing projects stood at €65.7 million, signaling a well-stocked pipeline.
Equity investors took note. HEP’s stock jumped 7.54% to €76.62 on the results. The shares have recovered more than 70% from their 52-week low of €45.01, though they still trade about 17% below the year’s peak of €92.51. The relative strength index of 59.2 suggests neutral-to-slightly positive momentum, while the high annual volatility of nearly 86% underscores the speculative nature of the paper.
Should investors sell immediately? Or is it worth buying HEP?
For the current year, management has struck a more cautious tone. Revenue is forecast between €45 million and €55 million, with EBIT projected in a range of zero to €10 million – well below the 2025 outturn. The drag comes from a strategic partnership struck in May 2026 for HEP’s US operations. An external investor is taking a stake, which cuts capital commitment and lowers risk but weighs on near-term earnings. A comprehensive financing solution planned for the second half of the year will also influence the upper end of the revenue guidance.
Financial flexibility has been strengthened by extending the company’s green bond by 18 months to November 2027. That gives HEP more room to advance its project pipeline in both the US and Germany. The real test of the refocused strategy begins now: 2026 will reveal whether the turnaround can deliver sustainable profits or remains a one-off recovery fuelled by a portfolio clean-up.
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