CNTEE Transelectrica (TEL) Q1 2025 earnings summary

Executive summary

• Net income increased 53% year-over-year to RON 171.5 million, supported by higher tariffs, improved cost management, and a 35% drop in operating expenses despite a 29% decrease in revenues.

• EBITDA grew 33% to RON 209.1 million, with improved margins from cost control and lower balancing market activity.

• Operational revenues rose 10.3% year-over-year to 587 million Lei, driven by higher transmission tariffs and increased volumes.

• Cash and cash equivalents at quarter-end were RON 851 million, up 78% from Q1 2024, reflecting strong operating cash flow.

• Net income margin improved due to higher tariffs and temporary revenue-cost mismatches.

Financial highlights

• Operating revenues for all operations declined 29% to RON 1,412 million, mainly due to lower balancing market revenues.

• EBITDA for all operations reached RON 281 million, up 32.2% year-over-year.

• EBIT for all operations increased 47% to RON 203.4 million.

• Cash from operations was RON 233 million, up from RON 18 million in Q1 2024.

• Total assets were RON 9,792 million, down 7% from December 2024; equity was RON 5,827 million, up 3%.

Outlook and guidance

• Temporary gains from revenue vs. cost mismatches in 1Q 2025 and 2024 backlog are expected to be offset by a regulatory tariff cut in June 2025.

• Investment plan for 2025–2027 approved, focusing on grid modernization, digitalization, and renewable integration.

• Ongoing monitoring of grant funding opportunities and cooperation with government entities for project implementation.

• The company expects continued volatility in energy and construction markets, with a focus on cost control and risk mitigation.