EQS-News: VERBUND AG: Results for quarters 1–2/2025: declining earnings due to significantly below-average water supply

VERBUND’s earnings in quarters 1–2/2025 fell significantly below the previous year’s level due to a considerable decline in electricity production from hydropower. EBITDA was down by 19.8% year-on-year to €1,413.0m. The Group result dropped 11.8% to €802.7m, and the Group result after adjusting for non-recurring effects declined by 22.3% year-on-year to €783.6m.

The hydro coefficient for the run-of-river power plants fell to 0.76, or 36 percentage points below the comparative prior-year figure (1.12) and 24 percentage points below the long-term average. Generation from annual storage power plants decreased by 3.5% in quarters 1–2/2025 compared with the prior-year reporting period. Generation from hydropower plants was thus down by a total of 4,891 GWh, or 28.3%, to 12,401 GWh. Electricity generation from VERBUND’s new renewables generation facilities also declined. At 0.78, the new renewables coefficient from wind and photovoltaics in quarters 1–2/2025 was 22 percentage points below the planned value and 16 percentage points lower than the prior-year figure (0.94). Generation from wind power and photovoltaics therefore fell by 135 GWh to 1,064 GWh.

However, earnings performance was positively impacted by the higher level of average sales prices achieved for own generation from hydropower, which increased by €3.9/MWh to €117.2/MWh. The high sales prices in quarters 1–2/2025 were largely attributable to early “limit” sales at the start of 2023 as well as from November 2023 onwards. This enabled VERBUND to benefit during quarters 1–2/2025 from the very high wholesale prices for electricity in place at that time.

Earnings were also boosted by a higher temporary contribution from the electricity grid, driven in part by higher auction revenues for cross-border transmission capacities. However, the additional profit generated will be clawed back through regulatory mechanisms in subsequent periods. The Sales segment also performed well in quarters 1–2/2025 thanks in part to stabilisation of the business with end-customers as well as higher revenues from power plant optimisation measures. Earnings additionally benefitted from the contribution from flexibility products, which increased by 25.4% to €163.8m in quarters 1–2/2025.

Earnings forecast for 2025 adjusted

Based on expectations of average levels of own generation from hydropower, wind power and solar power as well as the current opportunities and risks identified, VERBUND expects EBITDA of between around €2,750m and €3,100m and a reported Group result of between around €1,450m and €1,650m in financial year 2025. The adjusted Group result is expected to be between €1,430m and €1,630m. VERBUND’s planned payout ratio for financial year 2025 is between 45% and 55% of the Group result after adjusting for non-recurring effects. The earnings forecast is contingent on the Group not being impacted by any further legal or regulatory changes.                                                       

Additional information as well as the Interim Financial Report for quarters 1–2/2025 2025 is available on the website www.verbund.com > Group > Investor Relations > Latest financial results and 5-year comparison > Latest financial results.