ENEA (ENA) Q1 2025 earnings summary

Executive summary

• Q1 2025 marked a stable start with strong operational and financial performance, underpinned by ongoing execution of the low-emission strategy and significant investments in renewables and grid modernization.

• Net profit for Q1 2025 reached PLN 1,154.99 million, up from PLN 1,038.63 million in Q1 2024, with comprehensive income at PLN 1,145.95 million.

• Revenue from sales for Q1 2025 was PLN 7,413.86 million, a decrease from PLN 7,873.54 million in Q1 2024.

• EBITDA for Q1 2025 was PLN 1,657.58 million, compared to PLN 1,566.80 million in Q1 2024.

• The group is well-positioned financially, securing PLN 9.13 billion in external funding for distribution grid upgrades and maintaining a robust workforce of 18,000 employees.

Financial highlights

• Revenue declined year-over-year due to lower energy prices, but EBITDA increased slightly compared to Q1 2024, supported by a one-off event in the extraction segment.

• Operating profit for Q1 2025 was PLN 1,625.27 million, up from PLN 1,531.10 million in Q1 2024.

• Net debt to EBITDA improved, reflecting effective cost management and CO2-related outflows.

• Extraction segment delivered a strong result, with PLN 232 million year-over-year growth and a one-off event of PLN 40 million.

• Generation segment saw a negative impact of PLN 381 million due to market conditions and falling energy prices.

Outlook and guidance

• Coal production and sales are expected to remain stable, with prices anticipated to stabilize at rational levels.

• Distribution segment will benefit from increased WRA and WACC, with significant external funding to support investment.

• Legislative and market changes, including capacity market auctions and new regulations, present both challenges and opportunities.

• Sales margins are expected to normalize, with no further need for state interventions or price freezes.

• The Group will focus on diversifying external financing sources, supporting investments in low-carbon energy, renewables, energy storage, and distribution.