Zenith Energy (ZEN) H1 2026 earnings summary

Executive summary

• Revenue increased to CAD $1,090k for the six months ended September 30, 2025, up from CAD $911k year-over-year, driven by higher electricity sales in Italy despite a decline in natural gas sales and no oil production from Tunisian assets.

• Net profit for the period was CAD $3,764k, down from CAD $5,720k in the prior year, with total comprehensive income of CAD $1,336k due to higher administrative and non-recurring expenses.

• The company expanded its renewable energy portfolio in Italy, acquiring multiple solar and agrivoltaic projects, and advanced uranium exploration applications.

• Significant legal developments included ongoing arbitration against the Republic of Tunisia, with claims totaling over US $700 million across two cases.

Financial highlights

• Gross profit was CAD $337k, with administrative expenses rising sharply to CAD $7,563k, including CAD $5,149k in non-recurring legal and acquisition costs.

• Other income surged to CAD $14,495k, offsetting higher costs and finance expenses of CAD $3,176k.

• Earnings per share (basic and diluted) were $0.01, compared to $0.02 in the prior year.

• Cash and cash equivalents increased to CAD $2,414k from CAD $86k year-over-year.

Outlook and guidance

• The company targets further growth in its Italian solar and BESS portfolio, with a pipeline of 110.5 MWp and plans to commence construction on several projects in 2026.

• Uranium exploration in Italy is advancing, with environmental assessments scheduled for early 2026 and potential license issuance by mid-2026.

• Arbitration outcomes and asset sales (e.g., ZEN-260 rig) are expected to impact liquidity and strategic direction in 2026.