A successful financial year for SWG
In its annual accounts, Stadtwerke Gießen has reported strong results for the 2025 financial year.
A profit of 13.9 million euros – this is the figure reported by Stadtwerke Gießen (SWG) in its recently published annual accounts for 2025. This means that the result – due in particular to positive developments in the electricity and district heating sectors – exceeds the original forecasts of those responsible, albeit falling slightly short of the previous year’s figure. “We are thoroughly satisfied with what we have achieved together,” says Andreas Hergaß, CEO of SWG, commenting on the figures.
However, the two board members do not base their positive assessment of the annual accounts solely on the profit figure. In fact, SWG has once again succeeded in meeting the operational targets it set itself. “This can only be achieved with a team that is as competent as it is committed,” summarised SWG board member Matthias Funk, adding: “We would like to take this positive result as an opportunity to thank all our staff for their tireless efforts.”
Driving the energy transition forward
SWG is transferring 3.4 million euros of its profit as a dividend to its owner, the City of Giessen. The remainder – as in previous years – is being channelled primarily into the local energy transition. In other words, SWG is investing heavily in expanding the district heating network, upgrading the electricity grid and systematically adding new generation facilities that run on renewable energy. An outstanding example of this is the innovative PowerLahn combined heat and power plant, which recently came into operation. “The fruits of our focused and successful work enable us to drive forward the energy transition in Giessen and the region at the necessary pace,” says Andreas Hergaß. This strategy not only serves to protect the environment but is also increasingly aimed at ensuring security of supply. “Given the dramatically changing geopolitical situation, it is a matter of common sense to gradually become independent of energy imports,” says Matthias Funk, explaining the approach.
Alexander Wright, Chairman of the SWG Supervisory Board, highlights another aspect that speaks in favour of the path SWG has chosen: “SWG is consistently focusing on locally available renewable energy. This keeps value creation within the region and secures jobs.” In fact, SWG does not invest in offshore wind farms or similar large-scale projects. As a thoroughly municipal utility, it takes responsibility for the region and invests its funds in meaningful projects in Giessen and the surrounding towns and parishes.
Rock-solid for the future
As in the successful years before, SWG is using part of its profits to increase its equity ratio. Now standing at 45.9 per cent, it is well above the industry average. This latest increase serves to ensure SWG’s long-term viability. This is because the equity ratio is a key factor in the financial assessment of companies – an assessment carried out by banks, for example, when loans are involved. “The higher our equity ratio, the easier it is for us to secure loans and the better the terms,” explains Andreas Hergaß.
And it is precisely this good credit rating with the banks that is becoming increasingly important. Loans on reasonable terms are a prerequisite for economic success in the coming years and decades. Although the energy transition in Giessen and the surrounding region is already relatively well advanced, far-reaching modernisation projects still lie ahead. The SWG will have to raise a large proportion of the funds required for this. Those in charge have sufficient leeway to do just that. Alexander Wright puts it this way: “SWG is a rock-solid company and, as such, is well equipped to meet the challenges ahead. It is pursuing a clear strategy with a very precise vision of where it is heading. That is why I am not worried about the future of energy in Giessen and the region.”
The fact that this strategy is paying off is evident from the fact that SWG has been able to attract numerous new customers to its district heating scheme. “It seems that more and more people are seeing district heating as the best option,” says Matthias Funk happily.