Ørsted (ORSTED) Q1 2025 earnings summary

Executive summary

• Achieved solid operational results in Q1 2025, with EBITDA up 18% year-over-year to DKK 8.9 billion and net profit of DKK 4.9 billion, driven by higher EBITDA and lower tax.

• Offshore wind capacity surpassed 10 GW after Gode Wind 3 commissioning, with renewables accounting for 99% of generation.

• Strategic focus on disciplined capital allocation, including early discontinuation of Hornsea 4 in its current form due to adverse business case developments and increased execution risk.

• Expanded executive team with new senior leaders and strengthened offshore wind value chain representation.

• Completed key divestments, including 50% farm-downs of two US solar farms and part of West of Duddon Sands, supporting capital structure.

Financial highlights

• Q1 2025 EBITDA including new partnerships: DKK 8.9 billion, up 18% year-over-year; excluding new partnerships and cancellation fees: DKK 8.6 billion, up 14%.

• Net profit: DKK 4.9 billion, up 87% year-over-year, mainly due to higher EBITDA and lower tax expenses.

• Net interest-bearing debt at quarter-end: DKK 68.4 billion, up DKK 10 billion from previous quarter, mainly due to negative free cash flow.

• Gross investments in Q1: DKK 13.8 billion, primarily into renewables construction.

• Cash flow from divestments: DKK 3 billion, primarily from U.S. onshore project farm-downs.

Outlook and guidance

• 2025 EBITDA guidance (excluding new partnerships and cancellation fees) maintained at DKK 25–28 billion.

• Gross investment guidance for 2025 maintained at DKK 50–54 billion.

• Potential negative EBITDA impact of DKK 3–3.5 billion in Q2 2025 from Hornsea 4 discontinuation.

• Guidance excludes impacts from Hornsea 4 discontinuation and assumes normal wind speeds for the remainder of the year.

• Target to restore FFO/Adjusted NIBD above 30% by 2026; no dividend payout for 2023-2025, with plans to reinstate in 2026.