Germany's BayWa withdrew its 2025 earnings forecast on Monday, citing an ongoing review of the impact of a changed regulatory framework for the promotion of renewable energies in the United States.
The Munich-based agricultural supplies trader had in September warned that it faced a hit in the US earnings of its renewables unit, saying President Donald Trump's One Big Beautiful Bill Act would cut subsidies for renewable energies.
The Trump administration's bill makes it harder to develop wind and solar energy projects in the US by accelerating the phasing out of renewable energy tax credits. Almost every offshore wind project worldwide is propped up by extensive subsidies of one form or another.
BayWa's management board no longer considers the earnings forecasts, "to be reliable, and is withdrawing them," it said in a statement.
Shares fell two per cent.
Originally, BayWa's management board had expected a strong increase in adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the group, which in 2024 had been 10.5 million euros ($12.3 million).
The company has grappled with rising borrowing costs, forcing it to embark on a restructuring plan, including job cuts. In its statement, BayWa said it remained confident of completing the restructuring by the end of 2028.
(Reporting by Alexander Hübner and Matthias Williams, Editing by Friederike Heine)