Ignitis grupe (IGN1L) Q1 2026 earnings summary

Executive summary

• Adjusted EBITDA for Q1 2026 reached EUR 192.2 million, up 2% year-over-year, driven by strong Networks and Customers & Solutions segments.

• Adjusted net profit declined by 19.6% to EUR 86.7 million due to higher depreciation, amortization, and lower financial activity results.

• Dividend of EUR 0.683 per share paid for H2 2025, a 3% increase year-over-year, totaling EUR 49.4 million.

• Asset rotation completed with sale of 49% stake in Vilnius CHP, raising EUR 120 million at a 4.6x multiple over equity invested.

• Installed green capacity reached 2.1 GW, with 0.6 GW under construction and projects progressing on schedule.

Financial highlights

• Total revenue increased by 21.5% year-over-year to EUR 939.0 million in Q1 2026.

• Investments grew 7.1% year-over-year to EUR 156.9 million, with 70.6% allocated to Networks and 24.9% to Green Capacities.

• Net debt decreased to EUR 1,893.1 million, improving net debt to adjusted EBITDA to 3.44x and FFO to net debt to 21.5%.

• Free cash flow was negative EUR 74.3 million due to increased investments and negative working capital changes.

• Adjusted ROCE LTM at 7.1% (down from 8.9% YoY).

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance reiterated at EUR 550–600 million; investment guidance at EUR 590–690 million.

• Green Capacities segment EBITDA expected to be lower than 2025 due to poor wind conditions and lower captured prices in Q1.

• By 2029, targeted adjusted EBITDA is EUR 640–700 million and adjusted net profit EUR 250–290 million, both at ~6.5% CAGR.

• Strategic plan for 2026–2029 targets EUR 2.5–3.0 billion investments, with focus on green flexibility and Networks.

• Dividend per share floor set at EUR 1.54 for 2029, implying a 7.2% yield and ≥3% annual growth.