Vattenfall (VF) Q1 2025 earnings summary

Executive summary

• Navigated a turbulent start to the year with a focus on profitability, competitiveness, and decarbonization, while advancing key projects in offshore wind and nuclear energy.

• Final investment decision made for Nordlicht 1 and 2 offshore wind farms, with full ownership acquired and new power purchase agreements secured.

• Ongoing assessment of district heating operations, including the divestment of the Berlin business.

• Progress on new nuclear initiatives, including financing applications, construction of a spent fuel repository, and preparations for state-backed financing.

• Geopolitical and economic uncertainty increased, complicating the investment environment for the energy transition.

Financial highlights

• Net sales fell 11% year-over-year to SEK 67,960 million, mainly due to the Berlin heat business sale and lower electricity prices/volumes.

• Underlying EBIT decreased by SEK 2.2 billion to SEK 8.5 billion, with profit for the period down 65% to SEK 6 billion, impacted by prior year capital gains and market valuation changes.

• EBITDA dropped 49% to SEK 13.6 billion; EBIT decreased 60% to SEK 8.4 billion.

• Cash flow from operating activities was negative SEK 1.3 billion, mainly due to working capital changes.

• Achieved prices in the Nordics dropped from EUR 49/MWh to EUR 40/MWh year-over-year.

Outlook and guidance

• Strategic focus on renewables, grid investments, and decarbonization, with updated financial targets: ROCE (excl. items affecting comparability) ≥8% and Adjusted FFO/adjusted net debt ≥25%.

• Continued prioritization of investments in wind and nuclear, with ongoing evaluation of the district heating business.

• Strong balance sheet and financial discipline enable continued investment in strategic projects despite market volatility.