Ørsted (ORSTED) Q4 2025 earnings summary

Executive summary

• 2025 marked a pivotal year with a sharpened focus on offshore wind in core European and select APAC markets, supported by a robust capital structure and strategic divestments.

• Strategic priorities included capital structure strengthening, disciplined capital allocation, project execution, and organizational efficiency.

• Achieved 99% renewable generation, completed green transformation, and reduced Scope 1 and 2 emissions intensity by over 98% since 2006.

• Completed rights issue and finalized partnership/divestment program, securing DKK 46bn in proceeds across 2025 and 2026.

• Major project milestones: Gode Wind 3 commissioned, Borkum Riffgrund 3 and Greater Changhua 2b & 4 delivered first power, and U.S. projects progressed despite legal challenges.

Financial highlights

• Delivered EBITDA of DKK 25.1 billion for 2025, in line with guidance, despite below-normal wind speeds.

• Net profit reached DKK 3.2 billion, driven by strong operational performance.

• Q4 2025 EBITDA was DKK 8.1 billion, up DKK 500 million year-over-year; Q4 net profit was negative DKK 3.4 billion due to non-cash impacts and impairments.

• Exceeded divestment program target, securing DKK 46 billion in proceeds versus a DKK 35 billion target.

• Offshore sites delivered strong earnings, driven by ramp-up at Gode Wind 3, compensation at Borkum Riffgrund 3, and higher availability rates.

Outlook and guidance

• 2026 EBITDA expected to exceed DKK 28 billion, with higher offshore earnings from project ramp-ups and normalized wind speeds.

• Over 2.5 GW offshore wind capacity to be commissioned across three continents in 2026.

• Gross investments for 2026 projected at DKK 50–55 billion; committed capital for 2025–2027 remains at DKK 145 billion.

• ROCE expected to improve to around 11% in 2026–2027 and above 13% for 2028–2030.

• Target to reinstate dividend for the financial year 2026.