President Donald Trump's tax and spending bill could reduce the US earnings of German agricultural supplies trader BayWa's renewable unit, the company said on Tuesday, driving its share price lower.
"As a result of the so-called 'One Big Beautiful Bill Act', which significantly curtails the subsidies for renewable energies, BayWa is reviewing its long-term business planning and earnings expectations and may potentially revise them downwards," it said in a statement.
Shares in BayWa were down 3.9 per cent at 08:17 GMT.
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, without which these projects would not be economically viable.
It will take several weeks to assess the extent of the potential impact on its wind and solar business as well as possible countermeasures, BayWa said.
The Munich-based company has grappled with rising borrowing costs, forcing it to embark on a restructuring plan, including job cuts.
It still has a target to complete the restructuring by end of 2028, the company said.
(Reporting by Linda Pasquini, Editing by Miranda Murray and Barbara Lewis)