eEnergy reports 183% EBITDA growth as order book doubles
eEnergy Group has reported a remarkable 183% increase in adjusted EBITDA, reaching £1.7 million for the fiscal year ending December 31, 2025, despite a decline in revenues to £23.0 million from £25.1 million the previous year. The decrease in revenue is attributed to £4.0 million in anticipated FY25 revenue being deferred to the first half of 2026. The company’s gross margin improved to 35.3%, up from 34.7%, reflecting enhanced project budgeting and operational efficiencies. The growth in EBITDA signals a significant turnaround in profitability for the AIM-listed energy-as-a-service provider, which has seen its contracted and awarded order book double to a record £14.0 million from £7.0 million at the beginning of the fiscal year.
eEnergy's strategic pivot from a direct sales education model to a multi-channel, framework, and partner-driven development platform has been pivotal to its recent success. This transformation aligns with the company’s previous announcements regarding its focus on expanding its presence in the education, healthcare, and commercial sectors. CEO Harvey Sinclair highlighted the successful acquisition of major contracts, including those with Mace, LASER, and the NHS National Energy Efficiency Fund (NEEF) portfolio, which collectively underscore the company’s enhanced operational capabilities. The company’s ability to secure substantial contracts, such as the £1.7 million awarded by NHS trusts for energy efficiency projects, demonstrates its effective positioning within the UK market.
From a financial perspective, eEnergy's balance sheet appears to be strengthening, with a contracted order book that provides improved revenue visibility for FY26. The company anticipates revenues of £34.0 million and adjusted EBITDA of £4.5 million for the upcoming fiscal year, marking a significant recovery from the previous year's figures. The funding model employed by eEnergy, which offers customers an off-balance sheet solution, is expected to facilitate further growth and operational expansion. This model is particularly relevant in the current economic climate, where businesses are increasingly seeking innovative financing solutions to manage capital expenditure effectively.
In comparison to its peers, eEnergy operates within a competitive landscape that includes companies such as Octopus Energy (not publicly listed), SSE plc (LSE: SSE), and Drax Group plc (LSE: DRX). While eEnergy's focus on energy-as-a-service positions it uniquely, its revenue figures and growth trajectory can be contrasted with those of SSE, which reported revenues of £8.6 billion for the year ended March 2023, and Drax, which posted revenues of £7.1 billion for the same period. Furthermore, while eEnergy's gross margin of 35.3% reflects operational improvements, it is essential to consider that Drax's gross margin stood at approximately 36% in its latest financials, indicating a competitive yet challenging environment for margin expansion.
The significance of eEnergy's recent performance lies in its ability to de-risk its business model through a diversified order book and a focus on long-term contracts. The doubling of its order book to £14.0 million not only enhances revenue visibility but also positions the company favorably against its peers. The anticipated growth in revenues and EBITDA for FY26 suggests a robust value creation pathway, particularly as the company continues to secure contracts in the public sector, which tend to offer more stability and predictability. As eEnergy continues to execute its strategy effectively, it may enhance its competitive position and attract further investment interest, particularly as the energy sector increasingly shifts towards sustainable solutions.