VERBUND (VER) Q2 2025 earnings summary

Executive summary

• EBITDA fell 19.8% to €1,413m and Group result declined 11.8% to €802.7m in H1 2025, mainly due to lower hydro generation, weak wind output, and regulatory headwinds including extended profit levies in Austria, Spain, and Romania totaling €28.2m.

• Hydro coefficient dropped to 0.76, leading to a 28.3% decrease in hydropower output; wind generation also fell, while PV output rose slightly.

• Flexibility products, grid, and sales segments showed improved earnings, partially offsetting declines in generation.

• Investments in hydropower, wind, solar, and grid infrastructure continued, with major projects underway and expansion targets for renewables by 2030.

Financial highlights

• Revenue rose to €4,036.4m (+3.7% year-over-year); EBITDA dropped 19.8% to €1,413m; Group result fell 11.8% to €802.7m; adjusted Group result down 22.3% to €783.6m.

• Operating cash flow declined 27.7% to €1,338.4m; free cash flow after dividends was €559.9m.

• Net debt increased 24.8% to €2,467.9m; gearing rose to 23.2%.

• Earnings per share declined to €2.31 from €2.62; EBIT margin at 27.6%, EBITDA margin at 35.0%.

• Additions to property, plant, and equipment totaled €417.1m in H1 2025.

Outlook and guidance

• FY 2025 EBITDA expected between €2,750m and €3,100m; Group result between €1,450m and €1,650m, assuming average hydro, wind, and solar generation and no further regulatory changes.

• Adjusted Group result forecasted at €1,430m–€1,630m; dividend payout planned at 45–55% of adjusted Group result.

• Sensitivities: ±1% hydro generation impacts Group result by ±€7.5m; ±1% wind/solar by €1m; ±€1/MWh in wholesale price by ±€1.8m.

• 87% of 2025 hydropower generation already hedged at €115.8/MWh.