Foresight Environmental Infrastructure (FGEN) H2 2025 earnings summary

Executive summary

• Strategic review reaffirmed focus on proactive management of a diversified portfolio spanning renewable energy, energy infrastructure, and sustainable resource management, with selective refinements and disciplined asset disposals to maximize value.

• Achieved record cash distributions and tenth consecutive year of dividend growth, with a commitment to stable income, progressive dividends, and NAV growth.

• Strategic disposals and capital allocation reduced gearing and returned capital to shareholders.

• Growth assets such as CNG Fuels, The Glasshouse, and Rjukan Aquaculture show strong potential for future capital appreciation.

Financial highlights

• NAV per share at GBP 1.065 (106.5p), down from GBP 1.136, with a flat NAV total return of 0.6% for the year and an annualized NAV total return of 7.3% since IPO.

• FY25 dividend of 7.80p delivered, with cover at 1.32x; FY26 dividend target increased by 2.1% to 7.96p per share, expected to be well covered.

• Adjusted earnings per share rose to 8.3p from 7.5p year-over-year.

• GBP 90 million (£90.4m) raised from asset sales (10% of portfolio value), used to reduce gearing and fund share buybacks.

• GBP 30.7 million invested in existing commitments and value enhancements, alongside GBP 60 million debt reduction and GBP 20 million in share buybacks.

Outlook and guidance

• Dividend yield targeted at approximately 10% on current share price, with dividend cover expected to remain healthy, though likely to decrease slightly to around 1.2x for FY 2026.

• Focus remains on income generation, value enhancement of operating assets, and disciplined new investments only when conditions are favorable.

• Planned medium-term asset sales of growth assets to recycle capital and refresh the portfolio.

• Refocused investment strategy to balance income and growth, leveraging market opportunities in renewables and sustainable resources.