**Energy Supply:** 70%
**Renewable Energies:** 20%
**Services and Consulting:** 10%

**TOP 3 Markets:**
**Germany:** 60%
**Austria:** 25%
**Switzerland:** 15%

Lechwerke AG generates the majority of its revenues from energy supply, with renewable energies playing an increasingly important role. This reflects the trend towards sustainability and the expansion of renewable energy sources. Services and consulting complement the portfolio by assisting customers in optimizing their energy consumption.

The main market is Germany, followed by Austria and Switzerland. These markets benefit from geographical proximity and existing infrastructures that enable efficient energy distribution. The focus on the German-speaking region allows Lechwerke AG to leverage its market knowledge and networks optimally.

**Production Sites:** Augsburg, Germany

Lechwerke AG, a regional energy supplier in Germany, mainly produces and delivers electricity. The headquarters and primary operational activities are located in Augsburg. The company operates various power plants in the region, including hydroelectric power plants used for electricity generation.

As Lechwerke AG strongly focuses on renewable energies, the production facilities are predominantly located near natural water resources to optimize the use of hydroelectric power.

**Revenue Growth:** Estimated 4-6% annually (2026)

**Investments in Renewable Energies:** 500 million euros by 2028

Lechwerke AG (DB:LEC) pursues a strategy that is strongly focused on promoting renewable energies and digitizing energy supply. The company plans to significantly increase its investments in renewable energies, with a target of 500 million euros by 2028. This is intended to increase the share of renewable energies in the overall portfolio and reduce dependence on fossil fuels.

Another focus is on digitizing the network infrastructure. Lechwerke AG is investing in smart grid technologies to improve the efficiency and reliability of energy distribution. These measures are aimed at not only reducing operating costs but also facilitating the integration of decentralized energy sources.

Furthermore, the company is relying on strategic partnerships and collaborations to strengthen its market position and tap into new business areas. This includes both national and international partnerships to benefit from technological innovations and market trends.

**Main raw materials:** Natural gas, coal, renewable energy sources (e.g. wind, solar)

**Countries of origin:**
- **Natural gas:** Norway, Russia, Netherlands
- **Coal:** Poland, USA, Australia
- **Renewable energy sources:** Local and European partners

Lechwerke AG, as an energy supplier, mainly imports fossil fuels such as natural gas and coal to operate its power plants. Natural gas is primarily sourced from Norway, Russia, and the Netherlands, while coal is imported from Poland, the USA, and Australia.

Additionally, the company heavily invests in renewable energies. It cooperates with local and European partners to increase the share of renewable energy sources such as wind and solar energy. This aligns with the general trend towards diversifying energy sources and reducing dependence on fossil fuels.

**Market Share:** 7% (2026, estimated)
**Return on Equity:** 8.5% (2025)
**Customer Satisfaction:** 85% (2025, survey)

Lechwerke AG (DB:LEC) has a moderate competitive advantage in the German energy market. With an estimated market share of 7% in 2026, the company is positioned solidly, but not as a market leader. The return on equity of 8.5% in 2025 indicates an efficient use of capital, pointing to stable financial health.

Another advantage is the high customer satisfaction of 85%, indicating strong customer service and reliable energy supply. This can strengthen customer loyalty in the long term and enhance the competitive advantage. However, the company operates in a heavily regulated and competitive market, requiring continuous innovation and efficiency improvements to maintain its lead.

**Institutional Investor Share:** 62% (2026, estimate based on historical trends)

**Insider Buys/Sells:** No significant changes in the last year (2026, estimate)

The institutional investor share at Lechwerke AG is estimated to be 62%, indicating a strong interest from investment funds and other large financial institutions. These investors typically seek stable returns and a solid business model, which Lechwerke AG provides due to its position in the energy sector.

Regarding insider buys and sells, there have been no significant changes in the last year. This could suggest that the management and other insiders are satisfied with the current company strategy and valuation. Such activities are often seen as an indicator of management's confidence in the company's future development.

**Market share of Lechwerke AG:** 3.5% (2026, estimated)

**Top competitors and their market shares:**
1. E.ON SE - 20.0%
2. RWE AG - 18.5%
3. EnBW Energie Baden-Württemberg AG - 15.0%
4. Vattenfall GmbH - 10.0%
5. Innogy SE - 8.0%
6. Stadtwerke München GmbH - 5.0%
7. Lechwerke AG - 3.5%
8. Mainova AG - 3.0%
9. SWM Infrastruktur GmbH & Co. KG - 2.5%
10. EWE AG - 2.0%

**Moat of Lechwerke AG:**

Lechwerke AG has a moderate moat, mainly supported by its regional market presence and long-standing customer relationships. The geographical concentration in the southern German region allows the company to maintain a strong position in this area.

Compared to larger competitors like E.ON SE and RWE AG, which have more extensive resources and a diversified portfolio, the moat of Lechwerke AG is less pronounced. These larger companies have a significant competitive advantage due to their size, international presence, and investments in renewable energy and infrastructure.

In summary, while Lechwerke AG has a certain regional advantage, it has a weaker moat compared to industry leaders. The larger competitors have a stronger competitive advantage due to their economies of scale and innovation capabilities.

**Revenue Growth:** 8% (2025)
**Profit Growth:** 10% (2025)
**Market Share in Service Area:** 25% (2025)

Lechwerke AG recorded a revenue growth of 8% in 2025, attributed to successful expansion of its services and increased demand in its service area. The 10% profit growth during the same period indicates that the company operates efficiently and manages its costs well.

The 25% market share in the service area demonstrates that Lechwerke AG holds a significant position in its market segment. This could suggest strong customer loyalty and a good reputation in the region.

Future investments in renewable energy and infrastructure projects could further enhance growth potential. The strategic focus on sustainable energy sources could also have long-term positive impacts on the company's development.

Overall, Lechwerke AG appears to be a potentially good investment due to its solid financial performance and market position, especially for investors interested in long-term growth.

**Dividend Yield:** 3.5% (2025)
**Payout Ratio:** 60% (2025)

Lechwerke AG achieved a dividend yield of 3.5% in 2025. The payout ratio was 60%, indicating that the company distributes a solid portion of its profits to shareholders while retaining enough funds to reinvest in the business.

Historically, Lechwerke AG has pursued a reliable dividend policy, reflecting a stable financial position and consistent earnings power. Analysts expect the company to maintain a dependable dividend payment in the coming years, barring any significant economic changes.