Polenergia (PEP) Q3 2025 earnings summary

Executive summary

• Offshore wind projects Bałtyk 2 & 3 (1,440 MW) are progressing on schedule and budget, with first energy expected in 2027–2028 and financing secured through agreements with about 30 institutions.

• Bałtyk 1 (up to 1,560 MW) is ready for auction in December 2025, positioning as the largest Phase II offshore project.

• New sales strategy secures 90% of 2026 production at prices above current market rates, reducing revenue volatility.

• Significant long-term PPAs signed, including contracts with ADEO and KGHM, supporting stable revenue.

• The Group is expanding onshore wind (up to 2,010 MW) and PV (up to 982 MW) capacity, with Rajkowy PV plant construction started and gradual withdrawal from hydrogen and electromobility businesses.

Financial highlights

• 9M 2025 sales revenues: PLN 3,232.0 million (+7% YoY); Q3 2025 sales revenues: PLN 915.4 million (flat YoY); Q3 2025 revenues (excluding Trading and Sales) down 11% YoY to PLN 217.5 million.

• 9M 2025 EBITDA: PLN 402.1 million (-26% YoY); Q3 2025 EBITDA: PLN 89.2 million (-41% YoY).

• 9M 2025 adjusted net profit: PLN 54.7 million (down 82% YoY); Q3 2025 normalized net profit: PLN 6.4 million (down 82% YoY).

• Impairment losses totaling PLN 97.6 million recognized in 9M 2025, mainly in PV and hydrogen projects.

• Lower electricity and green certificate prices, one-time costs (PLN 31 million DCH transaction), and higher financial expenses impacted results.

Outlook and guidance

• Offshore wind remains a strategic pillar, with Bałtyk 2 & 3 expected to deliver 5.0–5.6 TWh annually at a CfD price of ~PLN 486/MWh from 2028.

• 90% of 2026 production hedged at PLN 399/MWh, above current market prices, supporting future profitability.

• Strategy targets 1.5 GW generation capacity and PLN 1.6 billion EBITDA by 2030, with major capex focused on offshore wind.

• No dividend payments planned through 2030 due to high investment needs.

• Strong pipeline in onshore wind, PV, and energy storage (up to 700 MW), with several projects reaching ready-to-build status by 2026–2030.