Societatea Energetica Electrica (EL) Q2 2025 earnings summary

Executive summary

• Net profit for H1 2025 exceeded RON 420 million, up over 300% year-over-year, with EBITDA surpassing RON 1 billion for the first time, driven by higher tariffs, increased volumes, and regulatory changes.

• The group maintained leading market positions in distribution (39.45% by volume) and supply (15.3% market share), with nearly 4 million users.

• Major investments included a RON 1,580.9 million CAPEX plan and a €500 million green bond issuance, the largest non-financial corporate green bond in Romania.

• Strategic focus on integrated business model, grid modernization, renewables, and digitalization supported strong results.

• Fitch Ratings upgraded the outlook to stable, and a RON 3.1 billion syndicated loan was secured to improve financial flexibility.

Financial highlights

• Consolidated revenues reached RON 9,817 million in H1 2025, up from RON 8,995 million in H1 2024, with both distribution and supply contributing roughly RON 300 million each to the increase.

• EBITDA rose to RON 1,003 million (margin 21.4%), a RON 388 million increase year-over-year, mainly from higher energy margins and regulatory changes.

• Net result improved by RON 319 million versus H1 2024, reaching RON 421.4 million.

• Net debt increased to RON 4,468 million, reflecting higher borrowings for investment and debt centralization.

• Free cash flow at June 30, 2025, was RON 1 billion, up from RON 475 million at March 31, 2025.

Outlook and guidance

• Positive outlook for 2025, with continued focus on network infrastructure, digitalization, renewables, and process improvement.

• Strategic plan targets 1,000 MW renewable capacity and 900 MWh storage by 2030.

• EBITDA forecast for 2025 is approximately RON 1.7 billion, with additional contributions expected from generation and value-added services.

• Dividend policy remains conservative, dependent on subsidy recovery and debt levels, with a return to higher payouts possible upon improved cash flow.

• Regulatory changes and market volatility, especially post-MACEE, are expected to impact cost structures and margins.