Fortum (FORTUM) Q2 2025 earnings summary

Executive summary

• Financial results for Q2 and H1 2025 were impacted by record low hydro and nuclear generation volumes and lower market prices, leading to decreased operating profit year-over-year, though strong hedging and optimization premiums provided some offset.

• Consumer Solutions delivered record results, driven by improved gas and electricity margins and cost synergies from brand mergers.

• Strategic acquisitions, including Orange Energia in Poland and a 4.4 GW wind project portfolio in Finland, expanded the retail customer base and renewables pipeline to 8 GW.

• Efficiency improvement program is on track, targeting EUR 100 million annual fixed cost savings by end-2025.

• Uncertain geopolitical situation and regulatory risks continue to impact the business environment.

Financial highlights

• Q2 2025 comparable operating profit was EUR 115 million (Q2 2024: EUR 233 million); H1 2025 comparable operating profit was EUR 577 million (H1 2024: EUR 763 million).

• Q2 2025 comparable EPS was EUR 0.09 (Q2 2024: EUR 0.20); H1 2025 comparable EPS was EUR 0.51 (H1 2024: EUR 0.68).

• Net cash from operating activities in H1 2025 was EUR 656 million, down from EUR 876 million year-over-year.

• Dividend of EUR 1.3 billion (EUR 1.40/share) paid in Q2/H1 2025.

• Financial net debt at end of Q2/H1 2025 was EUR 1.3 billion; leverage ratio (net debt/comparable EBITDA) at 0.9x.

Outlook and guidance

• Outright generation volumes for 2025 expected to be well below normal due to ongoing nuclear outages and low hydro output; nuclear output for 2025 estimated 2.9 TWh lower than normal.

• Hedge ratio for rest of 2025: 80% at EUR 41/MWh; for 2026: 60% at EUR 40/MWh.

• Optimization premium for 2025 guided at EUR 7–9/MWh.

• CapEx for 2025–2027 expected at EUR 1.4 billion (excluding acquisitions), with annual growth capex EUR 150–300 million and maintenance capex EUR 250 million.

• Fixed cost reduction program targets EUR 100 million annual savings by end of 2025, with a new run rate of EUR 850 million in 2026.