3U HOLDING AG with plans for substantial revenue growth in 2025

• Consolidated revenue up 6.5 % to EUR 55.8 million in the financial year 2024
• EBITDA margin of 6.8 % significantly exceeds the forecast corridor
• Management Board proposes to suspend dividend distribution in the transition year in order to drive development
• Outlook for 2025: ongoing expansion anticipated in a challenging market environment – strategic measures aimed at accelerating sales and earnings growth as from 2026

Marburg, 28 March 2025 – 3U HOLDING AG (ISIN DE0005167902; identifier: UUU) today affirms the preliminary results for the financial year 2024, released on 12 March 2025, and the outlook for the company in 2025. Accordingly, 3U significantly exceeded its forecast for the year in the reporting year, especially in terms of earnings. The company anticipates further growth in 2025 in the current financial year despite the persistent uncertainty prevailing in the environment.

Based on the audited but, as yet, without a final audit opinion, 3U HOLDING AG raised its consolidated revenue by 6.5 % to EUR 55.75 million in the financial year 2024 (previous year: EUR 52.35 million), thereby slightly exceeding its guidance of EUR 55 million. The Group’s earnings before interest, tax, depreciation and amortisation came in at EUR 3.77 million in the reporting period, which corresponds to an EBITDA margin of 6.8 %. 3U has therefore significantly outperformed its forecast figure of 4 % to 5 % but nevertheless fell short of the year-earlier figures of EUR 5.23 million in EBITDA and 10.0 % in relation to the respective margin.

ITC segment records dynamic development in 2024

In comparison with the previous year, the ITC segment lifted its revenue significantly by 25.1 % to EUR 19.18 million in the financial year 2024 (previous year: EUR 15.34 million). The consolidated revenue of the cs companies acquired in late summer 2023 totalled EUR 4.96 million (previous year: EUR 1.95 million). As a result, the ITC segment’s organic growth posted 6.3 %, which was also attributable to successful existing customer business. The sale of hardware and software delivered the strongest growth of 45.4% to EUR 3.75 million (previous year: EUR 1.53 million). The Managed Services business which combines system house activities, data centre services and trading in software licenses also achieved dynamic growth. The digitalisation business with SMBs grew by 25.4 %, from EUR 4.20 million to EUR 5.27 million in total, while Voice Business expanded by 9.4% in 2024. All in all, the comprehensive offer of network infrastructure, termination, including value-added services for business customers, continued to generate the largest share of 47.0% in the 3U Group’s ITC segment (previous year: 53.8 %). As expected, Voice Retail declined notably. Revenues from call-by-call solutions and preselection telephony in the end customer segment dropped by 16.3% in absolute terms. The share of the retail business in segment revenue decreased considerably from 8.9 % to 5.9 %. Given the uptrend in revenue, segment EBITDA increased by 11.6 % to EUR 4.37 million (previous year: EUR 3.91 million). The EBITDA margin of 22.8 % remained at a high level (previous year: 25.5 %).

Renewable Energies with higher margin despite revenue decline

The Renewable Energies segment’s performance was largely determined by the segment’s strategic development in 2024. In this context, the Group successfully achieved the relevant milestones for realising its repowering project in Langendorf. Upgrading the facilities and ramping up capacity as envisaged is aimed at more than doubling the Langendorf Wind Farm’s power production by 2026. Over the course of the construction activities, and due to the weather conditions and downtime caused by technical issues, the Renewable Energies segment reported a lower volume of electricity yield than in the previous year, as expected. The facilities generated power of 54.9 GWh (previous year: 73.8 GWh). The Adelebsen Solar Park’s electricity production also declined by 4.9 % to 9.3 GWh in 2024, which was attributable to less hours of sunshine. The energy produced by the three wind farms dropped 28.8 % to 45.6 MWh in the period under review (previous year: 64.0 MWh). Purely in mathematical terms, the electricity generated by the 3U Group was therefore sufficient to cover the average power consumption of around 15,000 households in Germany while saving virtually 20,000 tons of climate damaging carbon dioxide. The energy generated by three wind farms was sold at the respective monthly price prevailing on the market in 2024. The feed-in tariff secured for the long term under the German Renewable Energies Act (EEG) continue to apply only in the case of the Adelebsen Solar Park. The average monthly market value for onshore wind came in at 6.21 ct/kWh in 2024 (previous year: 7.81 ct/kWh). Owing to the lower level of electricity production and notably lower selling prices, the segment’s revenue also declined accordingly in the reporting year, from EUR 8.06 million to EUR 4.81 million. Segment EBITDA therefore also decreased significantly by 39.2 %, from EUR 5.83 million to EUR 3.55 million in the reporting year. Consequently, the Renewable Energies’ EBITDA margin increased slightly at a high level to 73.8 %, up from 72.4% in the previous year.

HVAC segment’s growth bucks the market trend

The HVAC (heating, ventilation, air conditioning) market faced huge challenges in 2024 and was decidedly negatively impacted by the prevailing political uncertainties in the market. Thanks to realigning the products and services offered online at an early stage to meet requirements, the segment’s revenue nevertheless recorded growth of 9.8 % to EUR 32.52 million (previous year: EUR 29.63 million) in 2024, which ran counter to the general trend in the market. Demand for photovoltaic modules, inverters and electricity storage right through to full-scale PV plants was especially evident in the upturn in e-commerce operations during the reporting period. Furthermore, in the final months of 2024, the segment reported a slight uptrend in the demand for components for floor heating systems and air conditioning technology. An improved delivery situation and an extended product portfolio traded online bolstered the positive development of the segment’s business. The selling prices and the development in the demand for heat generators and accessories nevertheless came under pressure from excess capacities in some parts of the HVAC market. The measures introduced to enhance efficiency were only partway effective in compensating for these developments. As expected, and as a result of the forward-looking increase in personnel and growth-related investments in infrastructure and marketing, the segment reported EBITDA of EUR –1.95 million compared with EUR –1.18 million in 2023.

Sound financial basis for future growth

At the end of the reporting year, the 3U Group had cash and cash equivalents of EUR 42.63 million at its disposal (31 December 2023: EUR 55.41 million). The decline was attributable to investments in the property portfolio and to increasing the reservoir of value by acquiring 200 Bitcoin at an average price of around EUR 60,600. All in all, the consolidated statement of financial position shows a sound equity ratio of 69.2 % (31 December 2023: 74.7 %). Liabilities rose above all on the back of the short-term interim financing for the Langendorf repowering project in the Renewable Energies segment. The key financials remained at a healthy level at the end of the reporting period. In line with expectations, the debt-to-equity ratio increased to 44.5 % (31 December 2023: 33.9 %) due to the changes in liabilities. The net cash position posted EUR 16.41 million on 31 December 2024 (31 December 2023: EUR 39.80 million). Working capital was reduced notably, from EUR 68.42 million to EUR 49.20 million.

“The year 2024 delivered proof of our agility: 3U delivered sound growth also against the backdrop of a challenging environment, while achieving its targets and expanding its market position. Net assets, financial position and result of operations can be described as resilient, sound and future oriented. Following the ongoing successful and profitable development of business in the ITC segment and the ensuing positive effects on the Group’s result of operations, but also thanks to the generally very satisfactory increase the HVAC segment’s revenue which ran counter to the general trend in the market, we can look back on very robust performance overall. In terms of the balance sheet, we can report a comfortable cushion of cash and cash equivalents and a high level of reserves, along with a strong equity base. Our groundbreaking investments in the Renewable Energies segment have laid the cornerstone for the profitable revenues of tomorrow. We are very well positioned for successfully implementing our growth ambitions under our 3U MISSION 2026+ in 2025,” was the joint statement of Christoph Hellrung, Uwe Knoke and Andreas Odenbreit, members of 3U HOLDING AG’s Management Board.

Retention of earnings to ensure the growth envisaged

In order to ensure the company’s long-term stability and growth, the Management Board and the Supervisory Board have, after due and careful consideration, decided to waive payment of dividend in this financial year. These retained funds will be invested in a targeted manner in order to sharpen our company’s competitive edge and reinforce sustainable growth. Our main focus will be on strategic acquisitions in the context of our 3U Mission 2026+.

“We fully understand that for many of our shareholders dividend is an important aspect of their decision to invest. Our aim is, however, to enhance value significantly, as planned, based on a sound financial policy and selective investments. All our shareholders will then once more derive benefit from substantial payouts based on our fundamental dividend policy in the years ahead,” explains Christoph Hellrung, 3U HOLDING AG’s CFO.

Significant increase in revenue 2025, along with paving the way for further acquisitions to achieve the medium-term growth ambitions

Without factoring in future acquisitions, the Management Board expects overall earnings in 2025 in a range of between EUR 62 million to EUR 66 million, which would correspond to growth of 11 % to approximately 18 %. As regards earnings before interest, taxes, depreciation and amortisation, management anticipates that EBITDA will break even overall in the transition year of 2025.

In view of the termination of the call-by-call and preselection services in 2024 and growing competition in the voice business, the ITC segment is set to focus on profitable product lines. Excluding potential acquisitions, the Management Board therefore expects revenue to decline and settle in the mid-single-digit euro range in 2025. The ITC segment’s EBITDA margin should remain at a healthy level in 2025. Smaller to mid-sized acquisitions, particularly with a view to expanding the Managed Service offering, will be screened intensively and form an integral part of the strategic goals defined for the segment.

Due to the expansion-related construction activities which will take place throughout the whole year as part of the repowering project in the Langendorf Wind Farm, the Management Board expects the Renewable Energies segment’s revenue to remain stable in the current year. Given the lower level of feed-in tariffs anticipated for onshore wind energy, the EBITDA margin in 2025 will not repeat the level achieved in 2024. The new wind turbines in Langendorf are scheduled to go online at the start of 2026, which will significantly ramp up the company’s power generating capacities to 73.5 MW.

The general conditions in online retail, in the HVAC industry and in the market for technical building equipment are not expected to improve until the end of 2025 at the earliest, and then only very slowly. Including the EMPUR Group acquired at the start of this year, management nevertheless anticipates notable revenue growth in the HVAC segment in 2025. The HVAC segment’s EBITDA is set to increase in 2025 in a year-on-year comparison but will nevertheless remain in marginally negative territory due to the expenses for raising the segment’s competitiveness and for expansion. Management is still engaged in intensive negotiations on another substantial takeover whose implementation would mark an important milestone in plans for Selfio SE’s IPO.

Against this backdrop and in harmony with the corporate strategy, the Management Board is working on a number of partly more major investment undertakings. Along with purchasing companies or customer bases, this applies most particularly to the planning of further repowering projects at the Klostermoor and Langendorf locations in the financial year 2025. Options for further value-creating investments are being examined with the requisite due diligence on a running basis. The strategic steps to promote growth outlined for all three segments are designed to significantly accelerate sales and earnings as from 2026. Accordingly, 3U HOLDING AG confirms the medium-term growth ambitions already communicated.

The publication of the audited Annual Report on the financial year 2024 has been likely delayed for a few days due to necessity of transferring to the ESEF data format, which is the precondition for the subsequent approval and adoption of the financial statements by the Supervisory Board. The report will be made available on the company’s website at www.3u.net under the “Investor Relations/Reports” heading.

Event announcement:

A webcast on 3U HOLDING AG’s results for 2024 and the outlook for 2025 will be held today 10:00 CET with CFO Christoph Hellrung and Uwe Knoke, Board member responsible for Strategy and Business Development.

Please register here to participate in the webcast.

Overview of the Group’s result

About 3U:

3U HOLDING AG (www.3U.net), based in Marburg, Germany, was founded in 1997. As the operating management and investment holding company, it heads up the 3U Group. With a view to increasing the value for the shareholders, employees, customers, suppliers and all stakeholders, the company acquires, operates and sells companies in the three segments of ITC (Information and Telecommunications Technology), Renewable Energies and HVAC (Heating, Ventilation and Air Conditioning Technology. The 3U Group operates successfully and profitably with its business models in mega trends in all three segments and is striving to attain market leadership in particular with its e-commerce business model. 3U HOLDING AG shares are traded on XETRA, Tradegate and on German regional stock exchanges (ISIN: DE0005167902; identifier: UUU).

Contact:

Thomas Fritsche
Leitung Unternehmenskommunikation & Investor Relations