TAURON Polska Energia (TPE) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw record-high EBITDA of PLN 2,331 million, up 24% year-over-year, and net profit of PLN 1,131 million, up 40%, with strong performance in Distribution, Generation, and Supply segments.

• Net debt/EBITDA improved to 1.6x, reflecting strong cash flow and deleveraging.

• Strategy implementation is progressing well, with momentum in retail supply, decarbonization, and new RES projects.

• No dividend payout is planned for 2025; profit allocation to reserve capital is recommended.

• Major legal disputes with Polenergia group were settled, re-establishing long-term agreements.

Financial highlights

• Revenue for Q1 2025 was PLN 9,632 million, nearly flat year-over-year; EBITDA margin reached 24%.

• CapEx increased 27% year-over-year to PLN 1,072 million, with major investments in grid and renewables.

• Net debt reduced to PLN 10,767 million, with available financing at PLN 4.8 billion.

• Free cash flow in distribution expected to remain positive, supported by strong EBITDA and CapEx.

• Earnings per share increased to PLN 0.64 from PLN 0.46 year-over-year.

Outlook and guidance

• Strategy targets over PLN 9 billion EBITDA by 2030 and PLN 13 billion by 2035 remain on track.

• Ongoing investments in wind and PV, with 378 MW of new RES capacity under construction.

• CapEx expected to grow by over 20% per annum, supported by preferential loans.

• Electricity market prices for 2025 are expected to be lower, with BASE contract prices at PLN 488.17/MWh.

• No risk to going concern status, supported by stable liquidity and available funding.