CNTEE Transelectrica (TEL) Q2 2025 earnings summary

Executive summary

• Operational revenues for H1 2025 decreased 38% year-over-year to RON 2,922 million, mainly due to lower balancing market activity and the absence of one-off income present in H1 2024.

• Net profit for H1 2025 was RON 256 million, down 3% compared to H1 2024, reflecting lower EBITDA and the absence of prior year one-time gains.

• EBITDA increased by 4% to RON 456 million, supported by cost control and improved system services margins.

• Investments in tangible and intangible assets totaled RON 197 million, down 23% year-over-year.

• Share price rose 51% in H1 2025, outperforming major indices and reaching a market cap of RON 4,178 million.

Financial highlights

• Transmission fee revenues rose 15.5% year-over-year, driven by a 1.8% increase in volumes and a 13.4% higher tariff.

• Cross-border rents increased 48.5% year-over-year, while other income dropped 80% due to the absence of a 2024 legal settlement and lower emergency energy sales.

• EBITDA for all activities was RON 456 million, up 4% year-over-year; EBIT was RON 264 million, nearly flat.

• Cash and cash equivalents increased 84% to RON 971 million at period end.

• Investments in fixed assets recorded in accounts were RON 319 million, down 11% year-over-year.

Outlook and guidance

• The company plans to continue its 2024-2033 grid development plan, with investments exceeding RON 9.4 billion.

• Focus remains on integrating renewables, increasing interconnection capacity, and digitalization.

• Temporary gains from pass-through operations in H1 2025 are expected to be cleared by year-end as revenue and cost mismatches normalize.

• Ongoing monitoring of regulatory, market, and macroeconomic risks, with proactive risk management strategies.