ENEA (ENA) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw revenue decline 9.5% year-over-year to PLN 7.41–7.59 billion due to lower energy prices, but EBITDA increased to PLN 1.94 billion, and net profit rose 11.2% to PLN 1,154.99 million, driven by strong mining and trading performance.

• Strategic investments in renewables and grid modernization advanced, supported by a PLN 9 billion loan from BGK for distribution upgrades.

• Workforce of 18,000 experts underpinned operational excellence and project delivery.

• The Group's activities span electricity generation, distribution, trading, heat distribution, and coal mining.

• Earnings per share for Q1 2025 were PLN 1.98, up from PLN 1.92 in Q1 2024.

Financial highlights

• Revenue fell by PLN 0.8 billion (-9.5% y/y), mainly due to a 31.6% drop in energy prices, but EBITDA margin improved to 25.6% from 22.4% year-over-year.

• Net profit margin for Q1 2025 was 15.6%, with net profit at PLN 1,154.99 million.

• Net debt/EBITDA LTM decreased to 0.27 from 0.85 year-over-year, indicating stronger leverage metrics.

• Free cash flow benefited from active working capital management and lower coal inventory values.

• Net cash flows from operating activities were PLN 878.83 million, with cash and cash equivalents at period end of PLN 5,068.10 million.

Outlook and guidance

• Coal production and sales expected to remain stable, but coal sales prices are projected to decline.

• Distribution segment to benefit from increased RAB/WRA and WACC, with significant external funding secured.

• Legislative changes, capacity market auctions, and further renewables integration will shape the year.

• Sales margins expected to normalize as market returns to pre-crisis conditions.

• Work on the National Energy Security Agency (NABE) project is suspended, pending new government direction.