Energa (ENG) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 reached PLN 484m, up 12% year-over-year, with EBITDA up 8% to PLN 1,168m, despite a 5% decline in revenues in one report and a 7% increase to PLN 5,769m in another.

• Distribution business line remained the main EBITDA contributor, with stable performance and improved margin.

• New Energy segment faced pressure from lower renewable production due to unfavorable weather.

• Conventional Energy saw a significant boost from higher output at Ostrołęka power plant.

• The Group benefited from compensation mechanisms related to statutory caps on electricity and gas prices.

Financial highlights

• Q1 2025 revenues reported as PLN 5,936m (-5% YoY) and PLN 5,769m (+7% YoY); EBITDA: PLN 1,168m (+8% YoY) and PLN 1,164m; Net profit: PLN 484m (+12% YoY).

• Adjusted net profit before one-offs: PLN 500m (+9% YoY).

• Distribution EBITDA: PLN 965m (+1% YoY, margin 50%).

• New Energy EBITDA: PLN 101m (-50% YoY, margin 57%).

• Conventional Energy EBITDA: PLN 92m (from -41m YoY, margin 19%).

• Energy Retail EBITDA: -62m (vs. -50m YoY, margin -2%) and segment revenue PLN 2,924m, EBITDA PLN 39m.

Outlook and guidance

• Investments in Q1 2025 remained at a similar level year-over-year, with continued focus on green transformation and infrastructure.

• Over 50% of electricity sold to customers is from renewable sources; 42% of total production in Q1 2025 was RES-based.

• The Group expects continued regulatory impacts from capped electricity and gas prices, with compensation mechanisms in place.

• Recent acquisitions in renewable energy are expected to support future growth.