Foresight Solar Fund (FSFL) H1 2025 earnings summary

Executive summary

• Global generation in H1 2025 was 4% above budget, with UK output nearly 9% above base, driven by higher irradiation despite grid outages.

• Dividend cover forecast at 1.3x for 2025, supported by robust hedging and contracted revenues, with confidence in maintaining above 1.1x in coming years.

• Share buyback program increased to £60m, with £29m returned to investors in H1 and cumulative buybacks adding up to 2.8 pence to NAV since May 2023.

• Development pipeline advanced, with BESS capacity awards and the Muel solar project in Spain nearing ready-to-build status.

• Ongoing divestments in Australia and other core markets, with the Board maintaining flexibility amid challenging market conditions.

Financial highlights

• NAV at 30 June 2025 was £603.8m, down from £634.4m at 31 December 2024, with NAV per share at 108.5p.

• Total operating profit (EBITDA) for H1 2025 was £66.5m, up from £60.6m in H1 2024.

• Dividend of £22.5m paid in H1 2025, with dividend per share at 4.05p.

• H1 2025 dividend cover at 0.67x, with full-year guidance at 1.3x.

• Portfolio-level debt stable at ~40%, with RCF resized from £150m to £100m, expected to save £1m in debt costs.

Outlook and guidance

• Board remains confident in achieving the 1.3x dividend cover target for FY 2025.

• Building hedge positions for 2026–2027, targeting 75–88% contracted revenues to balance stability and market exposure.

• Cautious optimism for Spanish and UK development pipelines, with focus on value crystallization and optionality.

• Strategic options under review, including potential changes to fund structure and further capital returns.

• Company is well-positioned to benefit from the global transition to a low-carbon economy.