EO2: Revenue Up by 18%, First Net Loss of €1.3M
EO2, a player in the wood energy sector, presents a contrasting fiscal year 2025-2026. Despite a growth in revenue, there is a significant operational deterioration. The wood pellet activity, accounting for 80% of the revenue, saw its operating result plummet from €0.2M to -€1.3M, while the group records its first net loss. This shift highlights how much the group's outlook depends on the normalization of prices and stock levels in Europe.
Increased Volumes but Margins Eroded by European Deflation
The consolidated revenue increased by 18.1% to €35.6M. The 'wood pellet' activity is the main driver with €28.6M (vs €24.4M in 2024-2025), an increase of 17.2% driven by a strong rebound in sales volumes. However, this volume increase masks a less favorable reality: average selling prices contracted due to the influx of massive stock from Eastern Europe, a legacy of overcapacity and overstocking accumulated after the post-Covid period. The 'energy services' sector showed a more sustained growth of 22.8% to €7.0M (vs €5.7M), driven by SVM which has reaped the benefits of its organizational turnaround in a favorable market. Weya, in the restructuring phase, contributed less than €1.3M.
Operational Profitability Collapses in Wood Pelleting
The gross operating surplus (EBITDA) improved to €2.2M from €0.7M in 2024-2025, but this improvement did not propagate downstream in the chain. The operating result (REX) came out at -€0.9M compared to -€1.5M previously. Behind this slight aggregated improvement, opposing movements emerge: the 'energy services' sector flipped from -€1.7M to +€0.4M in REX thanks to SVM's recovery, while 'wood pelleting' plummeted from +€0.2M to -€1.3M. This degradation directly reflects the conjunctural margin crisis. The 'particularly low' market prices during the period, combined with increased storage capacities, eroded the profitability of the main sector. The group ultimately records a net loss of €1.3M, its first in at least two fiscal years.
Cash Preserved but Increased Dependence on Price Normalization
Financially, EO2 maintains a correct footing. The self-financing capacity is established at €1.5M, and operational cash flows remain positive at €1.7M, notably thanks to a reduction in working capital needs by €0.2M. Investments were contained at €0.8M, generating a positive free cash flow of €0.7M. The group cleared €4.6M of bank debts and contracted €3.7M in new loans. As of February 28, 2026, EO2 had a gross cash position of €3.8M against a net debt of €7.2M. For the fiscal year 2026-2027, the group starts cautiously in the face of macroeconomic uncertainties. It is counting on an improvement in wood pellet activity in 'a more favorable context especially regarding prices', with an expected rebalancing of supply and demand and normalization of stocks in Europe. The success of this trajectory remains highly dependent on a rapid normalization of the market.
