A clear course for the future: “Westfalen shows that green transformation can also be economically successful,” explains CEO Dr. Thomas Perkmann on the occasion of the balance sheet for the 2024 financial year. With EBIT of €103.5 million, the company has set a new record and exceeded the €100 million mark for the first time in its more than 100-year history. The result was positively influenced by a one-time effect from the sale of a former factory site. Despite these favorable conditions, investments fell short of plans due to ongoing political uncertainties.
The CEO emphasizes: “We have held our own in a difficult environment – thanks to our clear strategic focus and the strength of our international business.” The balance sheet shows that Westfalen is competitive, customer-oriented, and on track with climate targets. Since 2019, the company's own CO2 emissions (Scopes 1 & 2) have been reduced by 67 percent, meaning that the original climate target for 2030 has already been achieved. The family-owned company already generates almost 50 percent of its earnings in potentially low-emission areas. “We are now aiming to reduce our CO2 emissions to net zero by 2030.”
Core business impresses
The core business with industrial gases remained stable despite the weak economy and volatile energy prices and continues to deliver the greatest increase in value. “In view of fluctuating energy prices and a stagnating economy, which is particularly affecting our main customer group of small and medium-sized enterprises, this is a great success,” said Perkmann. Around 40,000 commercial customers are supplied in the gas sector alone. A new filling plant in northern Germany and another on the French Atlantic coast have recently significantly strengthened activities in this segment.
The group's second major business area, the filling station business, also showed robust development. Sales at the approximately 260 filling stations remained at a high level. At the same time, the company is driving forward the expansion of alternative drive energies with one of the largest independent filling station networks. “Our charging infrastructure now comprises around 100 fast charging points – we created 32 new charging points last year alone. We also introduced HVO at selected stations in 2024 and are continuously expanding this offering,” said Perkmann. “We would have liked to have installed more fast charging points, but we were held back by regulatory conditions and the somewhat hesitant behavior of individual network operators.”
Westfalen focuses on heat pumps
In parallel with electric charging stations, electricity-based heating is also gaining importance in the heating market. The increased demand for heat pumps and several successfully implemented large-scale projects underscore this trend. Perkmann: "Without the uncertainty caused by the new Building Energy Act, the heat pump business would have performed even better. We hope that, despite the political will for change, stability will now prevail so that the market can develop calmly. In our view, heat pumps are and will remain the most efficient solution for climate-friendly heating in buildings." In order to expand its electricity-based heating business in commercial real estate, Westfalen recently acquired a stake in Fernwärme- und Kesseltechnik GmbH (FKT) in Oberhausen. Sales in the established propane business remained stable despite mild temperatures. The portfolio was expanded with bio-LPG, meaning that liquefied petroleum gas can now also be used in accordance with the Building Energy Act.
Positive momentum is also coming from the newest business segment, Respiratory Homecare, which provides care for people with respiratory diseases. Westfalen continues to focus on growth in this area both in Germany and abroad. Although the markets in the Netherlands and Germany are highly regulated, they are showing stable development. “It took us some time to find the right strategic fit, but the learning curve was steep. Now we are ready to tap into other regions with our service portfolio,” explains Perkmann.
Hydrogen: a promising prospect gaining momentum
Development in the hydrogen sector is progressing much more slowly – a market with great potential, but one that continues to lack clear political impetus. Against this backdrop, the Westfalen Group has revised its hydrogen strategy and adjusted its targets to reflect reality. While many competitors are pulling out, Westfalen remains convinced of the technology.
“We are deliberately sticking to hydrogen as a key technology for the energy transition,” emphasizes Perkmann. "However, the market is unlikely to really take off until after 2030. Until then, we will use the time to position ourselves well in terms of technology, infrastructure, and strategy." In addition to its own electrolysers and the expansion of its H2 trailer fleet, strategic partnerships in particular are intended to secure future success. Overall, the company considers itself well prepared to play a leading role in supplying medium-sized customers when the market takes off.
Politicians called upon to act
Despite the record results, the company remains cautious in view of the economic conditions. Perkmann: “We are pleased with the profit and stable sales of over 2.1 billion euros. But the truth is that we have invested less than planned due to political uncertainty.” Reliable framework conditions are needed to initiate future-proof projects, especially in the core market of Germany. “We have lost these in recent years.”
The German government's “investment booster” announced in the coalition agreement is a step in the right direction, but it is not enough, according to Perkmann: "We are prepared to commit and invest significantly more in Germany – if the conditions are right. At least there is a bit more optimism with the new federal government. We are therefore hoping for an economic turnaround."
For Westfalen, one thing is clear: in order to prevent projects in Germany from falling further behind those in other countries, faster approval procedures and the consistent use of renewable options such as hydrogen, heat pumps, and e-mobility are urgently needed in addition to reliable framework conditions. In addition, there needs to be noticeable relief for small and medium-sized industrial companies in terms of energy and bureaucratic burdens, as well as a courageous industrial policy that facilitates investment, promotes innovation, and reliably drives forward the energy transition," Perkmann concluded.
Outlook for 2025: Strong momentum from Europe
While investments in Germany are hardly paying off, projects in other European countries are progressing all the better. "We are investing heavily in our European cylinder gas business. In Switzerland, we are about to double the capacity of our industrial gas plant in Eiken. And in Belgium and France, our largest foreign market, we will be setting up new industrial gas sites in the coming months to make our supply to customers faster and more efficient. This will also enable us to close gaps in our supply network," reports Perkmann.
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