Greencoat UK Wind (UKW) H1 2025 earnings summary

Executive summary

• Net cash generation was £163.3m in H1 2025, with a 1.4x dividend cover, despite wind generation 14% below budget and lower power prices impacting NAV.

• Share price up 12% since last quarter but remains at a discount to NAV; sector consolidation and positive UK policy developments support long-term growth.

• Portfolio of 49 wind farms, 6% of UK wind assets, with major assets like Hornsea 1 and London Array; average asset age is nine years.

• £222m of asset disposals in eight months, all at NAV, supporting buybacks and de-gearing.

• Dividend increased by RPI or more for 12 consecutive years; £1.3bn paid in dividends and £1bn reinvested since IPO.

Financial highlights

• NAV as of 30 June 2025 was £3,182.7m (143.4p per share), down from 151.2p, reflecting lower wind output and reduced power price forecasts.

• H1 2025 revenue was £417.8m; net cash generation of £163.3m, similar to prior year.

• EBITDA margin at 75%, reflecting strong cash generation.

• Operating expenses up due to inflation and major offshore component exchanges; net loss for the period was £72.4m.

• Market capitalisation stood at £2,674.6m; GAV at £5,436.7m; pro forma gearing post-disposals at 39.5%.

Outlook and guidance

• Target dividend for 2025 is 10.35p per share, with a 12-year record of annual increases at or above RPI.

• Illustrative 5-year forward dividend cover projected at 1.9x; over £1bn of future capital allocation flexibility.

• Power price assumptions revised down, with 2025-26 market forward curves 10-15% lower; long-term prices expected 5-10% lower.

• UK wind market expected to more than double by 2030, with Clean Power 2030 targets driving growth.

• Policy clarity and AR7 strike price increases support a positive investment climate.