Polenergia (PEP) Q2 2025 earnings summary

Executive summary

• Offshore wind projects Bałtyk 2 & 3 (1,440 MW) reached final investment decision with secured financing; Bałtyk 1 (1,560 MW) applied for auction prequalification.

• Revenue for H1 2025 was PLN 2,317.9m, up 10.4% year-over-year, but the period ended with a net loss of PLN 39.8m due to asset impairments and margin pressure.

• Adjusted EBITDA for H1 2025 was PLN 312.9m, down from PLN 394.6m in H1 2024, reflecting margin pressure and one-off impairment charges.

• Strong liquidity position (PLN 1,764m cash) and robust capital structure, with major investments funded by green bonds and KPO loans.

• Strategic focus on large-scale RES projects, storage development (500 MW pipeline), and phasing out non-core operations.

Financial highlights

• H1 2025 revenues (excluding Trading & Sales): PLN 487.1m, down 21% year-over-year; total H1 2025 revenue: PLN 2,317.9m, up 10.4% year-over-year.

• H1 2025 EBITDA: PLN 312.9m, down 21% year-over-year; Q2 2025 EBITDA: PLN 151.0m, nearly flat year-over-year.

• H1 2025 net profit (normalized): PLN 80.6m, down 72% year-over-year; reported net loss: PLN 39.8m due to impairments and one-off costs.

• One-off costs: PLN 31m for Deal Contingent Hedge transaction, PLN 59m interest on bonds and KPO financing; significant asset impairments in photovoltaics (PLN 71m) and hydrogen (PLN 21m).

• Operating cash flow was negative at PLN -221.8m, compared to PLN -453.0m in H1 2024.

Outlook and guidance

• 89% of 2026 production hedged at prices above current market rates (PLN 397/MWh), ensuring revenue predictability.

• Offshore wind projects expected to deliver first energy in 2027 (Bałtyk 2 & 3) and 2032 (Bałtyk 1), with long-term CfD contracts indexed to Polish inflation.

• Capital expenditure for 2025 is planned at PLN 1,232m, focusing on wind, photovoltaics, distribution, and hydrogen projects.

• No dividend distribution is planned for 2025; focus remains on reinvestment and project development.

• Continued focus on expanding RES capacity, storage, and PPA sales, with further asset refinancing planned to support growth.