Polenergia (PEP) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was PLN 924.9 million, with adjusted EBITDA at PLN 155.4 million and adjusted net profit at PLN 14.8 million, reflecting a challenging quarter due to lower wind conditions and electricity prices; sales revenue fell 22% year-over-year, mainly from weaker trading and onshore wind.

• EBITDA dropped 22% year-over-year to PLN 126.0 million, while adjusted EBITDA declined 4%; net profit rose 40% to PLN 60.4 million, but adjusted net profit fell 75% due to normalization for one-off items.

• Major progress in offshore wind projects Bałtyk 2 & 3, with construction underway and first power expected in 2027; Bałtyk 1 remains in development after winning a 2025 auction.

• Strategic divestments in gas, clean fuels, prosumer photovoltaics, distributed energy, and hydrogen segments to focus on core renewable energy operations.

Financial highlights

• Sales revenue was PLN 924.9 million in Q1 2026, down from PLN 1,187.5 million in Q1 2025; revenue (excluding Trading) was PLN 246.9 million, down from PLN 252.4 million.

• EBITDA was PLN 126.0 million (Q1 2026) vs. PLN 161.9 million (Q1 2025); adjusted EBITDA was PLN 155.4 million (Q1 2026) vs. PLN 161.9 million (Q1 2025).

• Adjusted net profit was PLN 14.8 million, down from PLN 60.5 million in Q1 2025.

• Gross margin on sales was PLN 139.5 million (Q1 2026) vs. PLN 173.4 million (Q1 2025), a 20% decrease.

• Positive cash flow from investing activities, mainly from the sale of Elektrociepłownia Nowa Sarzyna (+PLN 126.7 million).

Outlook and guidance

• Offshore wind projects Bałtyk 2 & 3 are on schedule, with commercial operation expected in 2028 and first power in 2027.

• 80% of 2027 production hedged at an estimated average price of PLN 402/MWh, supporting revenue stability.

• Continued focus on expanding onshore wind and PV capacity, with over 2 GW under development and readiness for final investment decisions in Romania by 2027.

• Strategy targets 1.5 GW generation capacity and PLN 1.6 billion EBITDA by 2030, with PLN 4.6 billion capex focused on offshore wind; no dividend payments planned through 2030.