EnBW Energie Baden-Württemberg (EBK) Q4 2025 earnings summary

Executive summary

• Achieved strong 2025 results with adjusted EBITDA of EUR 5.1 billion, in line with guidance, driven by grid business and operational strength despite a challenging market.

• Record gross investments of EUR 7.6 billion, up 22%, with 87% allocated to growth projects in grid expansion, renewables, and hydrogen-ready capacity.

• Renewables reached 66% of installed generation, with 800 MW added in 2025; coal capacity reduced by 1.7 GW, and last lignite plant sold.

• Maintained robust balance sheet, with net debt down 8% to EUR 13.2 billion, supported by strong retained cash flow and capital increase.

• Proposed a 6% dividend increase to EUR 1.70 per share, with a payout ratio of 39%.

Financial highlights

• Adjusted EBITDA: EUR 5.1 billion, up 3% year-over-year, at the top end of guidance.

• Retained cash flow: EUR 3.3 billion, up 42%, driven by lower tax outflows and refunds.

• Net debt: EUR 13.2 billion, down 8%, due to investment delays and strong cash flow.

• Dividend: EUR 1.70 per share, up 6%, payout ratio at 39%.

• Total investments reached EUR 7.6 billion, up 22%, with 90% taxonomy-aligned and 87% in growth projects.

Outlook and guidance

• 2026 adjusted EBITDA expected between EUR 4.6 billion and EUR 5.1 billion.

• Anticipates continued operational strength in all segments, with grid investments driving growth.

• Lower earnings expected in thermal generation due to lower power prices and absence of lignite contribution.

• Mid-term (2026–2030) adjusted EBITDA CAGR of ~6%, targeting EUR 5.8–6.6 billion by 2030.

• Dividend policy unchanged: 40%-60% payout of adjusted net profit.