Societatea Energetica Electrica (EL) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong operational and financial performance, with EBITDA up 14.6% to RON 459.3 million and net profit rising 53.2% to RON 195.7 million, driven by the distribution segment and higher distributed volumes.

• The Group maintained market leadership in distribution and supply, serving 3.98 million users and holding a 17.16% supply market share as of January 2025.

• Investments in infrastructure and renewables accelerated, with a focus on grid modernization, sustainability, and Romania's energy transition.

• Operational discipline, resilience, and strategic positioning were key to delivering sustainable value.

Financial highlights

• Consolidated revenues reached RON 9,817 million in Q1 2025, up from RON 8,995 million in Q1 2024.

• EBITDA rose to RON 459.3 million (margin 18.2%), a 14.6% increase year-over-year.

• Net profit reached RON 195.7 million, up 53.2% year-over-year.

• Operating profit increased by 25.7% to RON 313.4 million.

• Group liquidity stood at RON 2,072 million as of 31 March 2025, with cash of RON 885 million.

Outlook and guidance

• The Group targets sustainable profitability growth, grid modernization, and expansion of renewable and storage capacity, aiming for 1,000 MWh renewable production and 900 MWh storage by 2030.

• Investment plan of at least RON 3.7 billion over the next five years, with a 2025 CAPEX plan of RON 1.54 billion.

• Focus remains on network infrastructure, digitalization, renewables, and process improvements.

• Anticipated reduction in indebtedness as the support scheme ends.

• Supply market share target of 18-20% by 2030, with continued focus on digitalization and operational efficiency.