Polenergia (PEP) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw significant declines in revenue, EBITDA, and adjusted net profit compared to Q1 2024, mainly due to lower results in onshore wind farms and distribution, partially offset by gains in trading, photovoltaics, and gas and clean fuels.

• Q1 2025 sales revenue was PLN 1,187.5m, nearly flat year-over-year, with EBITDA at PLN 161.9m, down 31%, and net profit at PLN 43.2m, down 69% from Q1 2024.

• Major strategic focus on offshore wind (Bałtyk 2 & 3), with construction commenced, final investment decisions, and financing secured in May 2025.

• Group strategy for 2025–2030 targets 1.5 GW capacity and PLN 1.6bn EBITDA by 2030, prioritizing offshore wind, onshore wind, and PV expansion.

• Major settlement and new 10-year electricity sales contract were concluded for Amon and Talia wind farms, including a one-time compensation and mutual waiver of claims.

Financial highlights

• Revenue (excluding Trading and Sales) was PLN 252.4 million, down 28% year-over-year.

• EBITDA fell 31% to PLN 161.9 million; adjusted net profit dropped 57% to PLN 60.5 million compared to Q1 2024.

• Net profit: PLN 43.2m (down PLN 97.5m, -69% YoY); EBITDA margin: 13.6% (down from 19.8%).

• Sales revenue: PLN 1,187.5m (down PLN 3.7m YoY); cost of goods sold increased by 9% YoY.

• Electricity production from RES was 375.1 GWh, down 19.2% year-over-year; installed RES capacity remained at 574 MW.

Outlook and guidance

• 89% of 2026 production is hedged at prices above current market levels (397 PLN/MWh).

• Offshore wind projects Bałtyk 2 and 3 are expected to deliver first energy in 2027, with Bałtyk 1 auction participation planned for 2025.

• Strategy aims for 1.5 GW installed capacity and PLN 1.6bn EBITDA by 2030, with PLN 4.6bn capex focused on offshore wind.

• No dividend recommended during the strategy period due to high investment needs.

• Onshore wind and PV projects in development are expected to reach ready-to-build status between 2025 and 2030+.