VERBUND AG: Full-year 2025 results: solid results despite below-average water supply and windfall tax

2025 was a crucial year for the implementation of our Strategy 2030. With a clear strategic focus and targeted investments, we are consistently pushing ahead with value-creating growth, climate protection and security of supply. This ambitious agenda was implemented in 2025 despite challenging political and market conditions – a test that once again confirmed our entrepreneurial resilience and the strength of our strategic management. The amendment to the Energy Crisis Contribution for Electricity Act extended the windfall tax until 2030 and reduced our scope for investment. In addition, delayed legislative procedures, declining futures prices and high spot market volatility increased the complexity of planning. We are proactively addressing these challenges through strict prioritisation, efficiency increases in operations and flexible financial planning to ensure the implementation of our core agenda while also taking advantage of opportunities arising from market shifts.

Results for 2025

Due to the significantly lower electricity generation from hydropower and the negative effects of the extended windfall tax in Austria, VERBUND’s results for financial year 2025 were lower than in the previous year, but remained at a high level. EBITDA fell by 21.3% year-on-year to €2,737.5m. The Group result was down 20.6% to €1,489.4m, and the Group result after adjustment for non-recurring effects amounted to €1,472.1m, down 25.5% on 2024. At 0.79, the hydro coefficient for the run-of-river power plants was 30 percentage points below the previous year’s level (1.09) and 21 percentage points below the long-term average. Generation from the annual storage power plants declined by 5.9% year-on-year in 2025. As a result, total generation from hydropower plants was down 8,078 GWh, or 24.2%, to 25,370 GWh. Due to lower wind supply and lower global radiation, electricity generation from wind power and photovoltaic installations – and therefore new renewable electricity generation facilities on the whole – also declined. In financial year 2025, the new renewables coefficient for wind and photovoltaic power was 0.82, which is 18 percentage points below the planned value and 9 percentage points below the 2024 level (0.91). Results were also negatively affected by expenses in connection with the measures to tax windfall profits, which amounted to €135.9m in the 2025 reporting period in Austria. The average sales prices achieved for the Group’s own production from hydropower declined only slightly despite lower futures prices on the wholesale electricity market, falling by €1.7/MWh to €116.3/MWh. The high average sales price achieved in 2025 was mainly attributable to premature “limit” sales at high wholesale prices for electricity at the start of 2023 and from November 2023 onwards. By contrast, results were positively influenced by the higher temporary earnings contribution from the electricity grid, partly due to higher auction revenues for cross-border transmission capacities, although this will be absorbed again in subsequent periods due to regulatory requirements. The Sales segment also performed well, partly due to the stabilisation of the end-customer business. The contribution from flexibility products remained at the previous year’s level at around €275m; in this segment, VERBUND benefits from its flexible power plant capacities amid increasing price volatility.

Regular dividend and special dividend proposed

A dividend of €3.15 per share for financial year 2025 will be proposed to the Annual General Meeting on 21 April 2026. The dividend breaks down into a regular dividend of €2.00 per share and a special dividend of €1.15 per share. The special dividend equates to an amount of approximately €400m and supports shareholder-oriented capital allocation. Distribution of the dividends is contingent on approval of the 2025 annual financial statements and a resolution being passed at the 2026 Annual General Meeting.

Forecast for 2026

Based on expectations of average levels of own generation from hydropower, wind power and solar power as well as the opportunities and risks identified, VERBUND expects EBITDA of between around €2,000m and €2,500m and a Group result of between around €900m and €1,200m in financial year 2026. VERBUND’s planned payout ratio for financial year 2026 is between 45% and 55% of the Group result of between around €900m and €1,200m, after adjustment for non-recurring effects. The earnings forecast is contingent on the Group not being impacted by any further legal or regulatory changes.

* from electricity generation and transmission (excluding Gas Connect Austria) as a percentage of total electricity generated (including purchase rights, excluding electricity generated for district heating). Preliminary figures before ETS audit

Additional information on VERBUND’s non-financial KPIs can be found in the Integrated Annual Report 2025, available on the VERBUND website at www.verbund.com > Group > Investor Relations > Financial result and five-year comparison > Latest financial results.

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