Verbund AG VERBUND AG: Results for quarters 1–2/2026: declining earnings due to significantly below-average water supply and lower sales prices

VERBUND’s results for quarters 1–2/2026 saw a marked year-on-year decline due to poor water supply and falling sales prices. EBITDA fell by 24.9% year-on-year to €1,061.5m. The Group result was down 35.4% to €518.1m, and the Group result after adjustment for non-recurring effects amounted to €537.8m, a decrease of 31.4% on last year.

The hydro coefficient for the run-of-river power plants stood at 0.68, down 8 percentage points on the previous year (0.76) and 32 percentage points lower than the long-term average. Generation from the annual storage power plants in quarters 1–2/2026 declined by 5.9% against the prior-year reporting period. As a result, total generation from hydropower plants was down 1,210 GWh (9.8%) to 11,191 GWh. By contrast, electricity generation from new renewables plants increased. At 0.82, the new renewables coefficient from wind and photovoltaic power was 18 percentage points below the planned value in quarters 1–2/2026 but 4 percentage points higher than in quarters 1–2/2025 (0.78). Generation from wind power and photovoltaics thus rose by 109 GWh to 1,173 GWh. As a consequence, VERBUND’s own generation in the first half of 2026 was 7.9% lower year-on-year, with generation from thermal power plants also slightly lower. Earnings performance was also adversely affected by the lower average sales price achieved for own generation from hydropower, which was down by as much as €31.0/MWh to €86.2/MWh. The decline is due to the high sales price in quarters 1–2/2025 which was mainly attributable to premature “limit” sales in 2023 at high wholesale prices.

The earnings contribution from the Hydro segment fell significantly owing to lower generation and lower electricity prices. Performance in the New renewables segment was also down year-on-year due to lower sales prices. However, a higher earnings contribution from the Grid segment, Sales segment and All other segments mitigated these pressures to some extent. The key factors behind this were the improved operating results from the gas transmission system, higher contributions from the end customer business and a positive performance in thermal generation due to high spreads, particularly at the start of the year. The contribution from flexibility products was down 16.7% to €136.4m in quarters 1–2/2026.

Guidance for 2026 adjusted

Based on expectations of average levels of own generation from hydropower, wind power and solar power in quarters 3–4/2026 as well as the current opportunities and risks identified, VERBUND expects EBITDA of between around €2,100m and €2,400m and a reported Group result of between around €1,000m and €1,150m in financial year 2026. The adjusted Group result is expected to be between €1,050m and €1,200m. VERBUND’s planned payout ratio for financial year 2026 is between 45% and 55% of the Group result, after adjusting for non-recurring effects.

KPIs
	Unit	Q1–2/2025	Q1–2/2026	Change
Revenue	€m	4,036.4	3,593.8	–11.0%
EBITDA	€m	1,413.0	1,061.5	–24.9%
Operating result	€m	1,113.1	714.0	–35.9%
Group result	€m	802.7	518.1	–35.4%
Earnings per share	€	2.31	1.49	–35.4%
EBIT margin	%	27.6	19.9	–
EBITDA margin	%	35.0	29.5	–
Cash flow from operating activities	€m	1,338.4	875.2	–34.6%
Free cash flow before dividends	€m	769.5	218.9	–71.6%
Free cash flow after dividends	€m	–559.9	–1,076.8	–
Performance of VERBUND shares	%	–6.9	–10.3	–
Gearing	%	23.2	36.2	–

Additional information and the interim financial report for quarters 1–2/2026 can be found at www.verbund.com > Group > Investor Relations > Latest financial results and 5-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