EQS-News: VERBUND AG: Results for quarters 1–3/2025: Declining earnings due to significantly below-average water supply and extension of windfall tax in Austria

VERBUND’s earnings in quarters 1–3/2025 fell significantly below the previous year’s level due to a considerable decline in electricity production from hydropower and the negative effects of the extension of windfall tax in Austria. EBITDA was down by 19.6% year-on-year to €2,111.1m. The Group result dropped 12.6% to €1,212.2m, and the Group result after adjusting for non-recurring effects declined by 22.2% year-on-year to €1,155.7m.

The hydro coefficient for the run-of-river power plants fell to 0.79, or 28 percentage points below the comparative prior-year figure (1.07) and 21 percentage points below the long-term average. Generation from annual storage power plants decreased by 4.1% in quarters 1–3/2025 compared with the prior-year reporting period. Generation from hydropower was thus down by a total of 6,032 GWh, or 23.1%, to 20,031 GWh. Electricity generation from VERBUND’s new renewables generation facilities also declined. At 0.81, the new renewables coefficient from wind and photovoltaics in quarters 1–3/2025 was 19 percentage points below the planned value and 11 percentage points lower than the prior-year figure (0.92). Generation from wind power and photovoltaic production therefore fell by 131 GWh to 1,552 GWh. The expenses recognised in connection with the measures to tax windfall profits, amounting to €112.0m in the current reporting period in Austria, also impacted earnings.

Despite the overall decline in wholesale prices for electricity, the average sales price achieved for own electricity generation from hydropower was down only slightly, falling by €0.3/MWh to €113.5/MWh. The high average sales price achieved in quarters 1–3/2025 was largely attributable to early “limit” sales at the start of 2023 and, from November 2023 onwards, at high wholesale prices for electricity. In contrast, earnings were boosted by a higher temporary contribution from the electricity grid, driven in part by higher auction revenues for cross-border transmission capacity. However, the additional profit generated will be clawed back through regulatory mechanisms in subsequent periods. The Sales segment also performed well thanks in part to stabilisation of the end-customer business. Earnings additionally benefitted from the contribution from flexibility products, which increased by 6.3% to €233.7m in quarters 1–3/2025. Here, VERBUND benefited from the increasing price volatility by using its flexible power plant capacities.

Earnings forecast for 2025 adjusted

Based on expectations of average levels of own generation from hydropower, wind power and photovoltaics in quarter 4/2025 as well as the current opportunities and risks identified, VERBUND expects EBITDA of between around €2,750m and €2,900m and a reported Group result of between around €1,500m and €1,600m in financial year 2025. The adjusted Group result is expected to be between €1,450m and €1,550m. 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.                                                       

KPIs
	Unit	Q1–3/2024	Q1–3/2025	Change
Revenue	€m	5,837.6	5,876.7	0.7%
EBITDA	€m	2,625.2	2,111.1	–19.6%
Operating result	€m	2,003.3	1,658.6	–17.2%
Group result	€m	1,387.2	1,212.2	–12.6%
Earnings per share	€	3.99	3.49	–12.6%
EBIT margin	%	34.3	28.2	–
EBITDA margin	%	45.0	35.9	–
Cash flow from operating activities	€m	2,332.8	1,653.8	–29.1%
Free cash flow before dividends	€m	1,541.5	755.1	–51.0%
Free cash flow after dividends	€m	–392.5	–574.3	–
Performance of VERBUND shares	%	–11.4	–11.6	–
Gearing	%	22.2	22.4	–

 

Additional information and the interim financial report for quarters 1–3/2025 can be found at www.verbund.com > Group > Investor relations > Financial result and five-year comparison > Latest financial results.

Contact:

Andreas Wollein
Head of Group Finance and Investor Relations
T.: +43 (0)5 03 13 - 52604
F.: +43 (0)5 03 13 - 52694
mailto:investor-relations@verbund.com