ABO Wind AG will capitalize on Europe's green transition with projected €50 million profit by 2027

KA
kapirey
kapirey
Not Invested
Community Contributor
Published
13 Jul 25
Updated
14 Jul 25
kapirey's Fair Value
€75.31
42.6% undervalued intrinsic discount
14 Jul
€43.20
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1Y
-17.9%
7D
-3.8%

Author's Valuation

€75.3

42.6% undervalued intrinsic discount

kapirey's Fair Value

🔍 1. Overview of ABO Wind AG

ABO Wind AG is a German company specializing in the development of renewable energy projects, primarily wind and solar. Founded in 1996, it operates in over 16 countries and has developed more than 3,600 MW of renewable capacity. Its business model covers everything from planning to construction and operation of energy parks.

📊 Financial Situation and Outlook

  • In 2024, ABO Wind reported a net profit of €25.6 million, the second-highest in its history.
  • For 2025, the company projects profits between €29 and €39 million, with expectations to reach €50 million annually starting in 2027.
  • The stock has shown strong performance in 2025, hitting a new 6-month high and maintaining a clear upward trend.

🌍 Benefit from European and German Aid

✅ 1. Subsidies and Guaranteed Tariffs (EEG)

  • ABO Wind benefits from Germany’s regulated tariff system (EEG), which guarantees a minimum price per kWh generated. In 2025, it won tenders for over 120 MW in wind projects, with average tariffs of 6.83 cents/kWh.
  • These tariffs have been state-funded since 2022, reducing financial risk for developers like ABO Wind.

✅ 2. Favorable European Regulation

  • The EU has accelerated permitting for renewable projects under the REPowerEU plan, allowing ABO Wind to submit over 850 MW in applications in the first half of 2025 alone.
  • The end of the EU’s emergency regulation created a “rush” in applications, which ABO Wind has capitalized on with an aggressive expansion strategy.

✅ 3. Next Generation EU Funds

  • While not explicitly mentioned in ABO Wind’s reports, the Recovery and Resilience Facility (RRF) funded by Next Generation EU supports innovative renewable and storage projects.
  • ABO Wind, with operations in Europe: Germany (headquarters), Spain, France, Finland, Ireland, Greece, Poland, Hungary, Netherlands, also United Kingdom, America: Argentina, Colombia, Canada, Africa: Tunisia, South Africa, Tanzania, could benefit indirectly through partnerships or project sales, as it has already done with Endesa.
  • Also United Kingdom, America: Argentina, Colombia, Canada, Africa: Tunisia, South Africa, Tanzania.

🧠 Fundamental Analysis

IndicatorValue / CommentRevenue 2024~€200M (estimated from project growth)Net Profit 2024€25.6MProfit Forecast 2025€29–39MEstimated P/E RatioModerate, with growth potentialDebtControlled, many projects self-financedExpected GrowthHigh, driven by tenders and international expansionCompetitive AdvantageExperience, geographic diversification, vertical integration

📈 Conclusion

ABO Wind AG is in a strong position to capitalize on Europe’s energy transition momentum. Government and EU subsidies, along with a favorable regulatory environment and an expanding project pipeline, reinforce its profile as a sustainable growth stock in the renewable energy sector.

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Disclaimer

The user kapirey holds no position in XTRA:AB9. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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