VERBUND (VER) Q4 2024 earnings summary

Executive summary

• 2024 results declined versus 2023, with revenue at €8,244.6m and group result at €1,875.3m, mainly due to lower electricity prices despite higher hydro and renewables output.

• EBITDA fell to €3,480.3m, impacted by lower contract prices and higher operating expenses, though hydro, wind, and PV generation increased.

• Major investments were completed in hydropower and renewables, with significant new capacity in Spain, Austria, and Germany.

• Strategic focus remains on renewables expansion, grid modernization, and hydrogen leadership.

• Results remain historically high, reflecting normalization after the energy price shock and ongoing volatility from geopolitical and economic factors.

Financial highlights

• EBITDA fell 22.5% year-over-year to €3,480.3m; group result down 17% to €1,875.3m.

• Adjusted group result (excluding non-recurring effects) decreased 24.5% to €1,976m.

• Operating cash flow dropped to €3,249m; free cash flow after dividends fell sharply to -€26m.

• Ordinary dividend proposed at €2.80 per share, with a payout ratio of 51.9% of reported group result.

• Net debt increased to €1,977m; net debt/EBITDA at 0.6x.

Outlook and guidance

• 2025 EBITDA guidance: €2,700m–3,300m; group result: €1,350m–1,750m, assuming average hydro, wind, and PV generation.

• Dividend payout for 2025 planned at 45–55% of group result after adjustment for non-recurring effects.

• Sensitivities: 1% change in hydro generation impacts group result by €15.8m; €1/MWh change in wholesale price by €5.9m.