Fortum (FORTUM) Q1 2025 earnings summary

Executive summary

• Achieved a strong power price of EUR 60.1/MWh in Q1 2025, supported by a robust double-digit optimization premium above last year's level.

• Sales and profits declined year-over-year due to lower spot and hedge prices, and reduced hydro and nuclear volumes, partially offset by optimization and improved renewables performance.

• Financial position remains robust with financial net debt near zero and a leverage ratio of 0.0x at quarter-end.

• Consumer Solutions segment achieved record quarterly comparable operating profit, driven by improved gas margins in Poland and cost synergies from brand mergers.

• Strategy focuses on reliable clean energy, industrial decarbonisation, and developing a renewables pipeline, with SBTi-validated net-zero targets by 2040.

Financial highlights

• Comparable operating profit for Q1 2025 was EUR 462 million, down from the previous year due to lower power prices and volumes.

• Comparable EBITDA at EUR 538 million (down from 622 million year-over-year).

• Comparable net profit declined to EUR 374 million; comparable EPS fell to EUR 0.42 from EUR 0.48 last year.

• Net cash from operating activities at EUR 453 million, down from EUR 538 million.

• Gross debt (excluding leases) at EUR 4.6 billion; liquidity reserves at EUR 8.4 billion.

Outlook and guidance

• Annual optimization premium guidance for 2025 raised to EUR 7-9/MWh (from EUR 6-8/MWh); 2026+ guidance remains at EUR 6-8/MWh.

• Generation segment hedged ~75% of Nordic power sales at EUR 40/MWh for 2025 and ~50% at EUR 41/MWh for 2026.

• CapEx for 2025-2027 expected at EUR 1.4 billion; annual maintenance CapEx at EUR 250 million and annual growth CapEx at EUR 150-300 million.

• Efficiency programme targets EUR 100 million annual fixed cost reduction by end of 2025, with EUR 60 million already achieved.

• Effective income tax rate guidance unchanged at 18%-20% for 2025-2026; Swedish property tax increase to add EUR 30 million annually from 2025.