Litgrid (LGD1L) Q2 2025 earnings summary

Executive summary

• Achieved synchronization of Baltic power systems with continental Europe on February 9, 2025, marking a major milestone for energy independence and market integration.

• Revenue increased 5.7% year-over-year to EUR 209 million in H1 2025, driven by ancillary services, while net profit turned negative due to surging costs.

• Major strategic infrastructure projects, including new synchronous condensers and transmission lines, were completed or advanced, supporting system reliability.

• Investments focused on grid modernization, resilience, and integration of renewables, with significant EU funding and congestion management revenues utilized.

• Board and management structure aligned with state ownership, emphasizing transparency, sustainability, and strategic project delivery.

Financial highlights

• Total revenue for H1 2025 was EUR 209 million, up EUR 11.3 million (5.7%) from H1 2024.

• EBITDA dropped to EUR -40.3 million from EUR 40.6 million year-over-year; adjusted EBITDA rose to EUR 26.8 million.

• Net profit fell to EUR -41.9 million from EUR 28.1 million in H1 2024; adjusted net profit stable at EUR 14.4 million.

• Operating expenses surged 55.2% to EUR 261 million, mainly due to a 2.7x increase in ancillary services costs.

• Investments totaled EUR 73.3 million, down from EUR 90.2 million, reflecting completion of major projects.

Outlook and guidance

• Strategic focus on completing synchronization projects and expanding grid capacity for renewables.

• Ongoing resilience program worth over EUR 140 million to protect critical infrastructure.

• Anticipated reduction in ancillary services expenses in H2 2025 following regulatory price cap changes.

• Targeting 8.4 GW of RES generation capacity connected by 2028, supporting Lithuania's green transition.