VERBUND AG Reports Declining Earnings Amid Low Water Supply

VERBUND AG announced a significant drop in earnings for the first half of 2025 due to a decline in electricity production from hydropower. The company's EBITDA fell by 19.8% year-on-year to €1,413.0m, while the Group result decreased by 11.8% to €802.7m. Hydropower generation saw a steep decline of 28.3%, amounting to 12,401 GWh. New renewables also faced a drop in performance, with wind and solar generation down by 135 GWh.

Despite the setbacks, VERBUND benefited from higher average sales prices for its hydropower generation, increasing to €117.2/MWh. The company also saw a positive temporary contribution from the electricity grid, largely due to higher auction revenues. VERBUND's earnings forecast for 2025 anticipates an EBITDA between €2,750m and €3,100m.

The sales segment showed resilience due to stabilized end-customer business and increased revenues from optimization measures. The company plans a payout ratio of 45% to 55% of the adjusted Group result. This forecast is dependent on the absence of further legal or regulatory changes.