CNTEE Transelectrica (TEL) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of 2025 fell 33% year-over-year to RON 4,150 million, mainly due to a sharp drop in balancing market activity and cyclical revenues.

• Net profit declined 56% year-over-year to RON 183 million, reflecting lower operating income and higher system service expenses.

• Core EBITDA slightly improved year-over-year, excluding one-off income from 2024 related to a court recovery against tax authorities.

• 3Q was heavily impacted by a temporary loss in pass-through operations, with 4Q expected to stabilize but not offset the 3Q loss.

• The company advanced major infrastructure projects, including new 400 kV lines and substations, and completed the merger of two subsidiaries to enhance operational efficiency.

Financial highlights

• Total operational revenues for 9M 2025 were 4,150 mil Lei, down 32.7% year-over-year.

• EBITDA from profit-allowed operations was 621 mil Lei, down 9.6% year-over-year.

• EBITDA dropped 33% year-over-year to RON 465 million; EBIT fell 59% to RON 175 million.

• Net income for 9M 2025 was 183 mil Lei, a 55.5% decrease compared to 410 mil Lei in 9M 2024.

• Dividend of RON 3.81/share from 2024 profit approved, with payment starting July 31, 2025.

Outlook and guidance

• 4Q is expected to be stable due to tariff increases and market price normalization, but no material recovery of 1Q-3Q losses is anticipated.

• Full-year pass-through loss is expected to be recovered over the next 1-2 years via increased tariff rates.

• Ongoing focus on grid modernization, renewable integration, and interconnection projects, with a 10-year investment plan of RON 9.49 billion.

• Regulatory changes and tariff adjustments are expected to impact revenues and costs in the coming quarters.