Stock Markets January 23, 2026

eEnergy Group Reports Substantial Growth in Profitability Amid Revenue Dip for FY25

Energy-as-a-Service Provider Sees Adjusted EBITDA Surge 183% Despite Slight Revenue Decline

By Caleb Monroe
eEnergy Group Reports Substantial Growth in Profitability Amid Revenue Dip for FY25

eEnergy Group PLC delivered a remarkable 183% increase in adjusted EBITDA to £1.7 million for the fiscal year ending December 31, 2025, even though total revenues tapered slightly to £23.0 million from the prior year's £25.1 million. The firm’s forward order book hit a record £14.0 million, doubling its position from the start of the year, enhancing visibility into future revenue streams.

Key Points

  • Adjusted EBITDA surged by 183% to £1.7 million in FY25, signaling improved profitability despite a slight decrease in overall revenues.
  • The forward order book expanded to £14.0 million, doubling the amount from the year's start, indicating strong future revenue prospects.
  • Strategic partnerships, including a significant funding facility from Redaptive, supported financing for over 175 clean energy projects, boosting the company’s operational reach across education, healthcare, and commercial sectors.

eEnergy Group PLC, a specialist provider in the Energy-as-a-Service market, revealed its financial results for the year ended December 31, 2025, highlighting a significant improvement in profitability alongside a modest contraction in revenues. The company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose impressively by 183%, reaching £1.7 million, demonstrating enhanced operational efficiencies and cost management amid challenging market conditions.

During this period, eEnergy experienced a slight revenue decrease, with total sales amounting to £23.0 million, down from £25.1 million the previous year. Despite this drop, the company emphasized robustness in its pipeline, with the forward order book expanding substantially to £14.0 million, double the £7.0 million recorded at the start of the year. Notably, around £4.0 million in expected FY25 revenues have been deferred into the first half of 2026, impacting the topline figures.

The firm’s gross margin also showed incremental progress, rising to 35.3% from 34.7% in the prior fiscal year. This improvement is attributed to more accurate customer quotation strategies, enhanced terms negotiated with suppliers, and strengthened operational controls that collectively supported a more favorable margin profile.

Financial leverage saw positive movement as well, with net debt including IFRS16 liabilities reduced to £1.6 million compared to £2.4 million in the 2024 financial year. This deleveraging followed the acquisition of a £1.5 million unsecured loan from Harwood Holdco Limited in November 2025, improving the company's balance sheet position.

FY25 was marked by the securing of significant contracts, including a government-backed solar photovoltaic (PV) and battery installation project in the UK managed by Mace, which contributed £5.1 million in revenue. Additionally, eEnergy secured multiple NHS trust contracts valued collectively at £1.7 million, supported by funding from the NHS National Energy Efficiency Fund, broadening its presence in the healthcare energy solutions sector.

Expanding its funding capabilities, the company entered a strategic facility agreement in May 2025 with Redaptive, establishing access to up to £100 million in off-balance sheet funding for customers. Since this collaboration commenced, eEnergy has drawn down £13.0 million to finance more than 175 solar PV and LED projects across 179 sites encompassing 51 customers, enabling accelerated project deployment and customer expansion.

Looking ahead, the board anticipates revenues to rise by 13.3% to £34.0 million in fiscal 2026, alongside a targeted adjusted EBITDA of £4.5 million. The management expects considerable cash inflows in FY26 as the net working capital built up in the latter half of 2025 is converted into positive cash flow, indicating improving liquidity and operational cash generation.

Commenting on the results, CEO Harvey Sinclair stated that the company's strategic repositioning—from a direct sales and education model to a multi-channel framework encompassing partner collaboration—has yielded substantial traction. This approach targets key sectors including education, where eEnergy claims market leadership, healthcare, and commercial and industrial domains.

To reinforce its governance, eEnergy appointed Nicholas Mills as a Non-Executive Director effective January 19, 2026, an addition aimed at strengthening board oversight and strategic guidance moving forward.

Risks

  • Revenue recognition timing shifts with approximately £4.0 million of FY25 revenue deferred into 2026, which could impact short-term financial performance.
  • Dependence on government-backed projects and NHS trust funding introduces potential exposure to public sector funding variations and policy changes.
  • The company’s debt position, albeit reduced, and reliance on external financing through facilities such as the one with Redaptive, could pose financial risks under adverse market conditions.

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