NextEnergy Solar Fund (NESF) H1 2026 earnings summary

Executive summary

• Interim results for the six months ended 30 September 2025 showed strong operational outperformance, with additional revenue generated versus forecast.

• The board is finalizing a strategic review to enhance shareholder value and address the share price discount, with findings to be released in the new year.

• Appointment of Tony Quinlan as new Chair brings significant sector and governance experience.

• Operational performance optimization, debt repayment, and reliable, well-covered dividends remain key priorities.

• Delivered strong operational performance and focused capital allocation despite challenging market and regulatory conditions.

Financial highlights

• NAV per ordinary share decreased to 88.8p (from 95.1p at 31 March 2025), mainly due to lower power price forecasts; Ordinary Shareholders' NAV at £510.9m (down from £547.4m); Gross Asset Value at £1,029m.

• Cash income for the period was £48.3m, up from £45m year-over-year.

• Dividend target for FY25/26 maintained at 8.43p per share, with forecast cover of 1.1x–1.3x and a yield of approximately 16%.

• Operating portfolio generated £48.3m in cash, supporting a dividend cash cover of 1.7x for the period.

• Total gearing, including preference shares, was 49.2%, with 69% of debt at fixed rates.

Outlook and guidance

• Dividend target for FY25/26 reaffirmed at 8.43p per share, with full-year dividend cover expected between 1.1x and 1.3x.

• The board and investment advisor remain optimistic about medium-term growth, focusing on strategic review, operational optimization, and capital unlocking.

• The company is well-positioned to benefit from the UK’s Clean Power 2030 and Solar Roadmap, despite current capital constraints.

• Strategic review to address NAV discount and explore capital recycling expansion.

• Board confident in future opportunities and capitalizing on sector tailwinds.