S.N.T.G.N. Transgaz (TGN) Q2 2026 earnings summary

Executive summary

• Interim unaudited financial statements for H1 2026 show results 16% above budget, but net profit and operating profit declined year-over-year due to lower tariffs, reduced construction activity, and higher costs.

• Net profit attributable to equity holders was 303.7 million lei, down from 519.0 million lei in H1 2025.

• Major investments included Black Sea–Podişor pipeline, hydrogen transmission initiatives, and network upgrades.

• Market capitalization reached an all-time high, with strong share price performance despite broader market declines.

Financial highlights

• Net profit for H1 2026 decreased by RON 246 million compared to H1 2025, with EBITDA and operating profit also declining due to higher depreciation and lower revenues.

• Operating revenue fell by 4% year-over-year, mainly from lower average booking tariffs and reduced auction premium revenue.

• Revenue from Moldova transmission increased to 167.6 million lei, while domestic transmission revenue fell.

• Costs rose 13% year-over-year, with depreciation expense up due to new Black Sea Shore projects.

• EBITDA margin in total sales was 44.8% (down from 45.6%).

Outlook and guidance

• Regulated revenue for gas year 2026-2027 is set to increase by 40% to RON 2.6 billion, with transmission tariffs decreasing by 9% per entry and 7% per exit.

• Strategic focus on decarbonization, hydrogen integration, and major infrastructure investments through 2035.

• Forecasts indicate budget achievement for the full year, with no major risks identified for H2.

• Ongoing climate and decarbonization strategy implementation.

• Correction amounts and negative adjustments are expected to persist for at least three years.