Foresight Solar Fund (FSFL) H1 2026 earnings summary

Executive summary

• Net asset value (NAV) declined to £517.9m (94.9p/share) from £545.9m at year-end 2025, mainly due to higher discount rates, regulatory changes, and revised UK electricity price forecasts.

• Portfolio generated 543 GWh of renewable electricity in H1 2026, powering nearly 200,000 UK homes and avoiding 190,160 tonnes of CO₂e.

• EBITDA was £57.7m, on budget but down from £66.5m year-over-year, with UK assets outperforming and offsetting weaker results elsewhere.

• Dividend per share declared at 8.10p, with cover for 2026 projected at 1.1x, supported by power price hedging and high contracted revenue visibility.

• Board is considering all strategic options, including asset enhancement, divestments, capital recycling, and addressing the persistent share price discount to NAV.

Financial highlights

• Net assets at 30 June 2026: £517.9m, down from £603.8m at 30 June 2025; NAV per share at 94.9p.

• EBITDA for H1 2026: £57.7m (H1 2025: £66.5m); cash flow from operations: £0.6m, impacted by historical tax liabilities.

• Dividend per share declared at 8.10p, matching the previous year.

• Net debt/EBITDA at 2.9x, improved from 3.1x year-over-year; EV/EBITDA at 6.0x, improved from 7.5x.

• Ongoing charges ratio: 1.10% (H1 2025: 1.17%).

Outlook and guidance

• Dividend target of 8.10p per share for 2026, with a yield of ~8.5% on NAV and 1.1x cover.

• 84%, 82%, and 64% of revenues contracted for 2026, 2027, and 2028, respectively, at average prices of £75–£79/MWh.

• Enhancement programme expected to add £2.5m annual revenue and improve dividend cover.

• Board and Investment Manager are considering all strategic options, including further asset sales and private market partnerships.

• Medium-term plans include a 150 MW enhancement programme and progressing 250 MW of development pipeline to ready-to-build stage.