VERBUND (VER) investor relations material

Executive summary

• Q1 2026 was marked by heightened geopolitical tensions, notably the Iran conflict, causing volatility in energy markets and impacting electricity prices and supply chains.

• EBITDA fell 26.1% to €534.6m and Group result dropped 32.0% to €269.8m compared to Q1/2025, mainly due to significantly low hydro coefficient and lower contract prices.

• Hydropower output was significantly below average, while wind and solar generation increased, partially offsetting hydro declines; sales segment improved earnings.

• Regulatory uncertainty in Austria and Europe, including debates on the merit order system, emissions trading reform, and excess profit levies, weighed on market visibility and investment planning.

• Major expansion and rehabilitation projects continued in hydropower and renewables across core European markets.

Financial highlights

• EBITDA declined by 26.1% year-over-year to EUR 534.6 million in Q1 2026; group result fell by 32% to EUR 269.8 million.

• Revenue decreased to €1,896m from €2,295m year-over-year; earnings per share dropped to €0.78 from €1.14.

• Operating cash flow decreased to EUR 453.5 million, and free cash flow after dividends dropped to EUR 150 million.

• Net debt reduced by 6% to €2,639m, improving the gearing ratio to 22.9%.

• Additions to tangible assets rose to EUR 262 million, mainly for hydropower, battery storage, and grid investments.

Outlook and guidance

• 2026 EBITDA guidance is EUR 2.1–2.5 billion; group result guidance is EUR 1–1.2 billion, assuming average generation in Q2–Q4.

• Dividend payout targeted at 45–55% of group result, adjusted for non-recurring effects.

• Sensitivities: ±1% in generation impacts group result by ±EUR 14 million; ±EUR 1 in wholesale price impacts by ±EUR 4.2 million.

• Guidance assumes average hydro, wind, and PV conditions for the remainder of 2026.