Friedrich Vorwerk Group SE

Revenue in Q2 was EUR 198 million, up 17% year over year. Q2 EBITDA rose 68% to EUR 60.8 million, with a margin of 30.7%, and Q2 EBIT was EUR 52.8 million with a 26.7% margin. For the first half, production output increased 35% to EUR 448 million, EBITDA was EUR 92.6 million with a 27.4% margin, and EBIT was EUR 67.9 million. Cost of materials improved by EUR 10.7 million, with the ratio falling from 46.4% to 38.6%, and earnings from joint ventures more than tripled to EUR 12.8 million in Q2. As of June 2026, net cash was EUR 212 million, up EUR 128 million versus Q2 2025. Full-year 2026 guidance was raised to EBITDA of EUR 180 million to EUR 200 million, while revenue guidance stayed at EUR 730 million to EUR 780 million. Management also said the 2026 forecast is organic only and does not include inorganic growth.

Torben Kleinfeldt emphasized that Friedrich Vorwerk sits at the center of Germany’s energy transition, spanning natural gas, hydrogen, electricity cables, district heating, CO2 transport, and other adjacent infrastructure. He highlighted a large and diversified pipeline of projects, including major gas, hydrogen, cable, and CO2 opportunities, and said the company is flexible enough to shift resources across markets if policy or project mix changes. His tone was confident and upbeat, especially on execution progress and the breadth of future work.

Tim Hameister focused on the strong margin expansion and cash generation. He said the company reduced its cost of materials by EUR 10.7 million, improved the materials ratio to 38.6%, and benefited from higher JV earnings, which helped drive Q2 EBITDA to EUR 60.8 million and H1 EBITDA to EUR 92.6 million. He also pointed to a very healthy balance sheet with net cash of EUR 212 million, and noted that the raised EBITDA guidance of EUR 180 million to EUR 200 million still implies significant absolute growth. He said the guidance is based only on organic growth, but the cash position leaves room for future growth options.

Analysts asked about H2 order intake, possible delays in electricity projects from legal uncertainty, the A-Nord bonus-malus provision, Q3 trading, data center opportunities, and the sustainability of margin improvement. Management said they do not expect major delays in electricity tenders because projects planned through 2035 are still largely set up for underground cables and much of the cable procurement and permitting is already underway. On A-Nord, Tim Hameister said the bonus-malus target adjustment was agreed with the client in late Q2 but not yet reflected in the numbers, with the remaining contract volume around EUR 100 million to be worked through until summer 2027. They also said July started well thanks to good weather, and that 5C-Tech is scalable, with revenue expected to rise from around EUR 3 million last year to more than EUR 20 million this year and around EUR 50 million in the midterm.