CNTEE Transelectrica (TEL) investor relations material

Executive summary

• Core profitability increased year-on-year, with EBITDA up 41% to 649 million lei, driven by a 74% rise in cross-border congestion income and higher regulated tariffs, despite a 2% decline in billed volumes.

• Net income rose 42% year-on-year to 367 million lei, supported by higher EBITDA and pass-through gains.

• Operational revenues increased 12% year-on-year to 3,297 million lei, while operational costs rose 7% to 2,647 million lei.

• Pass-through operations generated a RON 85 million gain, nearly offsetting the regulatory backlog from 2024–2025.

• Investments included RON 262 million in new contracts and RON 44 million in commissioned assets, with more CapEx expected in the second half.

Financial highlights

• Total operating revenues increased 12% year-on-year to 3,297 million lei.

• EBITDA reached 649 million lei, up 41% year-on-year; EBIT rose 66% to 439 million lei.

• Transmission tariff revenue grew 8.4% year-on-year, with an 11% higher tariff offsetting lower volumes.

• Operating expenses rose 7% to 2,647 million lei, mainly due to a 24% increase in own technological consumption costs.

• Net profit margin improved to 11.1% from 8.8% a year earlier.

Outlook and guidance

• The regulatory backlog is expected to be fully recovered by September 2026, with a tariff reduction likely from October to realign revenues and costs.

• Tariffs for 2027 are expected to remain roughly flat or slightly lower, with negative corrections from 2025 grid losses and a declining recovery backlog from 2022.

• Second half CapEx and asset commissioning are expected to outpace the first half, following historical patterns.

• Management expects continued revenue growth driven by regulated tariff adjustments and ongoing investments in grid modernization.

• The company is prioritizing digitalization, smart grid projects, and integration of renewables, with a 10-year development plan focused on energy security and interconnection.