Foresight Solar Fund (FSFL) H1 2026 earnings summary

Executive summary

• H1 EBITDA of £57.7m met budget despite global generation 5.6% below forecast; the U.K. generated 95% of EBITDA from 68% of output, with Q2 strength offsetting weaker performance elsewhere.

• NAV fell to £517.9m (94.9p/share) from £545.9m (99.2p/share) at year-end 2025, reflecting lower power-price forecasts, higher discount rates and regulatory changes.

• The 2026 dividend target is 8.10p/share, projected to be covered 1.1x; contracted revenues alone are estimated to provide 1.0x cover.

• Share price rose 10% to 70.8p; total shareholder returns were 17.1%, though the share price remained at a material discount to NAV.

• Strategic priorities include enhancements, selective disposals, refinancing and capital recycling to support shareholder value and portfolio renewal.

Financial highlights

• NAV at 30 June 2026 was £517.9m, down from £545.9m at year-end 2025; NAV per share was 94.9p.

• H1 EBITDA was £57.7m versus £66.5m in H1 2025; operating cash flow was £0.6m versus £14.8m, affected by tax payments and lower distributions.

• Dividend declared at 8.10p/share, unchanged from the prior year; 2026 dividend cover is projected at 1.1x.

• Total shareholder return was 17.1% for H1; since IPO, TSR was 63.8% and annualised TSR was 4.0%.

• Ongoing charges ratio was 1.10%, versus 1.17% in H1 2025.

Outlook and guidance

• 2026, 2027 and 2028 revenues are 84%, 82% and 64% contracted, respectively, at average prices of £75–£79/MWh; contracted revenues alone are expected to cover the 2026 dividend 1.0x.

• The 2026 dividend target is 8.10p/share, projected to be 1.1x covered; near-term contracts and hedges provide visibility into 2027.

• Enhancement programme across nine U.K. sites targets up to £2.5m annual revenue and 14 GWh additional generation; a 150 MW programme is underway.

• Medium-term development pipeline target is 250 MW reaching ready-to-build stage; investment or exit remains an option.

• Priorities include meeting operating targets, progressing disposals and refinancing, improving cash-flow visibility and advancing a second enhancement phase.