CNTEE Transelectrica (TEL) investor relations material

Executive summary

• Q1 2026 revenues rose 14.3% year-over-year to 1,613 mil Lei, driven by higher regulated tariffs, interconnection, and system services income.

• Net income increased 27.4% year-over-year to 201 mil Lei, with EBITDA up 24.2% to 349 mil Lei, supported by higher operational profitability.

• Share price appreciated 21.9% in Q1 2026, outperforming major Bucharest Stock Exchange indices.

Financial highlights

• Operational revenues reached 1,613 mil Lei, up 14.3% year-over-year, with transmission fee revenue rising 11.2% and cross-border rents nearly doubling.

• EBITDA increased 24.2% to 349 mil Lei, and EBIT for all activities rose 34% to 249 mil Lei.

• Net cash from operating activities was 294 mil Lei, up 23% year-over-year.

• Operational costs increased 11.8% year-over-year, mainly due to higher grid losses and a 37% rise in technological own consumption costs.

• System services revenues increased 28% year-over-year, while balancing market revenues rose 4%.

Outlook and guidance

• A sizeable backlog of 100 mil Lei is expected to be cleared in 2026/2027 through increased tariff rates.

• The company prioritizes investments in grid modernization, digitalization, and renewable integration, with a 2026 investment program of 914 mil Lei, up over 30% from 2025.

• Strategic projects for interconnection with Moldova and the completion of the 400 kV ring in northern Romania are underway.

• The company expects continued volatility in energy markets and is focused on regulatory engagement and risk mitigation.