VERBUND (VER) Q3 2025 earnings summary

Executive summary

• EBITDA for Q1–3/2025 declined by 19.6% to €2,111m, and Group result fell 12–13% to €1,212m, mainly due to low hydropower output, contract prices, and increased regulatory levies.

• Operating cash flow dropped 29% to €1,654m, and free cash flow after dividends was negative at -€574m.

• Significant investments continued in renewables and grid infrastructure, with major projects in Austria, Spain, Romania, and Germany.

• Windfall tax expenses rose to €119.2m across Austria, Spain, and Romania.

• Market volatility, geopolitical tensions, and regulatory uncertainties persisted, including the extension of Austria's profit tax system.

Financial highlights

• Revenue for Q1–3/2025 was stable at €5,876.7m, with electricity sales volume down 8.3% due to lower hydropower output.

• EBITDA margin declined to 35.9%, and EBIT margin to 28.2%.

• Net debt increased 25% to €2,477m, with gearing up to 22.4% from 17.9%.

• Earnings per share was €3.49, down 12.6% year-over-year.

• Additions to tangible assets reached €720m, with infrastructure additions up 48% to €304m.

Outlook and guidance

• FY2025 EBITDA is forecast between €2,750m and €2,900m; Group result between €1,500m and €1,600m, assuming average Q4 generation and no further regulatory changes.

• Adjusted Group result expected at €1,450m–€1,550m; dividend payout planned at 45–55% of adjusted Group result.

• Sensitivities: ±1% hydro generation impacts results by ±€3.7m; ±1% wind/PV by €0.5m; ±€1/MWh in wholesale price by €0.8m.