VERBUND (VER) Q4 2025 earnings summary

Executive summary

• 2025 marked a pivotal year for the 2030 strategy, with targeted investments advancing growth, climate protection, and supply security despite political and market challenges.

• Full-year results were impacted by lower hydropower generation, a weak hydro coefficient (0.79), and lower achieved contract prices, while windfall profit taxes in Austria, Spain, and Romania negatively affected EBITDA by €146m.

• Improved contributions from sales and regulated grid segments, with thermal generation offsetting some renewable shortfalls.

• Strategic focus remained on investment prioritization, operational efficiency, and flexible financial management to address legislative delays and increased planning complexity.

Financial highlights

• EBITDA declined 21.3% to €2,737.5m, mainly due to weak hydrological conditions and regulatory levies; group result fell 20.6% to €1,489.4m.

• Revenue decreased 2.8% to €8,013.6m; operating cash flow fell 40.9% to €1,918.5m; free cash flow after dividends was -€792.7m.

• Net debt/EBITDA ratio increased to 1.0 at year-end 2025.

• Dividend proposal: €2.00 ordinary and €1.15 special per share (total €3.15), payout ratio ~74%.

Outlook and guidance

• 2026 EBITDA expected between €2,000m–2,500m; group result forecast at €900m–1,200m, assuming average hydro and renewables conditions and no further regulatory changes.

• Dividend policy for 2026: payout of 45–55% of adjusted group results after non-recurring adjustments.

• Sensitivities: ±1% hydro generation impacts group result by ±€14.3m; ±€1/MWh price change impacts by ±€6.1m.

• €200m assumed for energy crisis contributions in 2026, reflecting regulatory and political uncertainties.