Greencoat UK Wind (UKW) H2 2025 earnings summary

Executive summary

• Largest non-utility owner of UK wind farms, generating 2% of UK electricity and avoiding 2.2 million tons of CO2 in 2025.

• Delivered £531m adjusted cash EBITDA and £291m net cash generation in 2025, both up year-over-year.

• 12 consecutive years of inflation-linked dividend growth, with £1.4bn paid out and £1bn reinvested since inception.

• Sector leadership shown through innovative fee structure, share buybacks, and asset disposals.

• Positive long-term outlook for renewables, with UK government supporting record renewable capacity.

Financial highlights

• Adjusted cash EBITDA of £531m (+1.9% y/y); net cash generation of £291m (+4.3% y/y) in 2025.

• Dividend cover at 1.3x for 2025; historical average 1.7x, forecasted to rise to 1.8x over next five years.

• Portfolio IRR at 11% (NAV), yield nearly 8% on NAV and close to 11% on share price.

• £227m dividend paid in 2025; 12th consecutive year of inflation-related dividend at or above RPI.

• NAV per share at 31 December 2025 was 133.5p, down from 151.2p, mainly due to lower power price assumptions.

Outlook and guidance

• Dividend target for 2026 set at 10.7p, a 3.4% increase.

• 2026 guidance: EBITDA £560-660m, net cash generation £350-410m, dividend 10.70p/share, central case dividend cover 1.7x.

• Forecasts indicate £1.2bn in CPI-linked dividends and £800m–£1.2bn excess cash for allocation over next five years.

• Reinvestment in existing portfolio prioritized, with disciplined approach to new investments.

• Target gearing below 40% and continued focus on disposals, debt reduction, and buybacks.