VERBUND (VER) Q3 2025 earnings summary

Executive summary

• EBITDA for Q1-3/2025 declined by 19.6% to €2,111.1m, with group result down 12.6% to €1,212.2m, mainly due to lower hydro generation, contract prices, and negative regulatory impacts, including windfall taxes.

• Operating cash flow dropped 29% to €1,653.8m, and free cash flow after dividends was negative at -€574m.

• Significant investments continued in renewables and grid infrastructure, with major projects including Limberg III and Stegenwald hydropower plants, and expansion in Spain, Romania, and Germany.

• Battery storage capacity expanded, with 110 MW operational and further projects underway.

• Results were partially offset by strong flexibility products, grid operations, and improved sales segment performance.

Financial highlights

• EBITDA: €2,111.1m (-19.6% year-over-year); group result: €1,212.2m (-12.6%); adjusted group result: €1,155.7m (-22.2%).

• Revenue stable at €5,876.7m (+0.7% year-over-year); electricity sales volume dropped 8.3%.

• Operating cash flow: €1,653.8m (-29.1%); free cash flow before dividends: €755.1m (-51.0%).

• Net debt increased 25.3% to €2,477.2m; gearing rose to 22.4% from 17.9%.

• Taxes on income decreased by €145m, including a positive one-off effect of €46m from deferred tax remeasurement.

Outlook and guidance

• FY2025 EBITDA expected 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 forecasted at €1,450m–€1,550m; dividend payout planned at 45–55% of adjusted group result.

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