ABO Energy cuts costs, workforce to protect 2025 profit

• ABO Energy to cut costs and reduce staff, reaffirming 2025 profit forecast despite lower H1 net profit and margin pressure from falling power prices.

German renewable energy developer ABO Energy GmbH & Co KGaA (ETR:AB9) has announced a cost-cutting and efficiency programme aimed at safeguarding profitability for 2025, despite reporting lower half-year earnings.

The company revealed on Tuesday that it will reduce staff numbers in the coming months, primarily through natural workforce fluctuation, while shifting its business model toward selling more construction-ready project rights. These transactions require fewer human resources compared to full-scale project delivery. At the same time, ABO intends to maintain its volume of turnkey construction projects at current levels.

For the first half of 2025, ABO Energy posted a net profit of EUR 9.6 million (USD 11.2m), down from EUR 11.4 million in the same period last year. The company attributed the decline to falling electricity prices across many markets combined with growing competition in renewable energy projects, which has pressured margins.

“Electricity prices have fallen in many countries, while at the same time the supply of renewable energy projects is growing. As a result, our margins have fallen in some markets, as expected,” said Alexander Reinicke, managing director responsible for corporate finance.

Despite the earnings dip, ABO Energy’s revenue rose sharply to EUR 206 million, compared with EUR 123 million a year earlier. The company highlighted two main drivers: the revival of Germany’s wind energy business and a growing pipeline of projects reaching construction readiness.

Looking ahead, ABO reaffirmed its full-year 2025 profit guidance, forecasting net earnings of EUR 29–39 million, up from EUR 25.6 million in 2024. The company stressed that efficiency measures, streamlined operations, and a focus on profitable project sales will support this target.

The strategy reflects a broader trend in Europe’s renewable sector, where developers are balancing growth ambitions with tighter margins and shifting market conditions. For ABO, the pivot to leaner operations underscores its commitment to delivering steady returns while continuing to advance its solar and wind pipeline across Germany and other markets.