Energy solutions provider eEnergy Group has downgraded its financial guidance for FY2026 after a review of its sales pipeline found previously expected opportunities had been overstated.

Ahead of its AGM, the company said a detailed assessment following the appointment of interim CEO John Gahan concluded that “investment-grade” opportunities worth £66m more accurately reflect the level of near- to medium-term revenue potential.

As a result, eEnergy now expects FY2026 revenue of around £32m, down from previous guidance of £38m, while adjusted earnings has been cut to £1.7m from £4.5m.

Despite the downgrade, both measures remain ahead of FY2025 performance, when revenue reached £19m and adjusted earnings totalled £2.2m.

The company, which provides energy-saving and energy-generating solutions, has also launched a restructuring and cost-saving programme designed to simplify operations and reduce annual operating costs by almost one-third. The changes are expected to deliver annualised savings of around £2m during FY26 and improve second-half adjusted earnings by approximately £1m. However, first-half results will include an exceptional restructuring charge of around £500,000.

For the first half of FY2026, eEnergy expects revenue of approximately £22m, more than double the £10.1m reported a year earlier, while adjusted earnings is forecast to rise to around £1.2m from £0.5m.

The update was met with shares falling by almost 40% in early trading as investors digested the updated outlook.

The company expects to publish interim results for the six months to 30 June on or around 30 July 2026.

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