NextEnergy Solar Fund (NESF) H2 2025 earnings summary

Executive summary

• Delivered 11th consecutive year of fully cash-covered dividends, maintaining a target of 8.43p per share for FY26, equating to a 12% yield, among the highest in the FTSE 350.

• Portfolio comprises 101 operating solar and battery storage assets, with a $50m investment in a private solar infrastructure fund, supporting diversification and resilience.

• Achieved 1GW milestone of installed net capacity, powering approximately 254,000 homes annually.

• Returned £395m in dividends to shareholders since inception, with £49.2m paid in FY25.

• Board actively exploring all strategic options to enhance shareholder value, including capital recycling, buybacks, and potential corporate transactions.

Financial highlights

• Gross asset value at £1,061m as of 31 March 2025, down from £1,155m year-over-year; net asset value (NAV) declined to £547.4m (95.1p/share) from £618.6m.

• Generated £73.2m in cash income; net cash income available for distribution was £56.4m after costs and preference share coupon.

• Dividend cover at 1.1x, with 70% of debt at fixed rates, providing stability.

• Gearing (excluding preference shares) at 29.7%; total gearing (including preference shares) at 48.4%.

• £62.2m paid down in long-term amortizing debt to date, with £147.2m remaining.

Outlook and guidance

• Maintained dividend target of 8.43p per share for FY26, with forecast cover of 1.1–1.3x post-debt amortization.

• Optimistic on UK solar and storage growth, supported by government targets to triple solar and increase storage five-fold by 2030.

• Clean Power 2030 plan targets 50GW solar and 23-27GW battery storage by 2030, up from 17.8GW and 4-5GW currently.

• Ongoing capital recycling and strategic initiatives to support future growth and liquidity.

• Continued commitment to attractive dividends, reduced gearing, and operational excellence.