Vattenfall (VF) Q2 2025 earnings summary

Executive summary

• Net sales declined 8% year-over-year to SEK 118.5 billion, mainly due to the sale of the Berlin heat business and lower Nordic electricity prices, partially offset by higher gas sales.

• Underlying EBIT increased to SEK 15.3 billion, up SEK 600 million year-over-year, driven by improved continental hedges, trading, and higher Distribution segment contribution.

• Profit for the period declined by SEK 15.4 billion to SEK 10.8 billion, mainly due to prior-year one-off capital gains and market value changes.

• Major investments include over SEK 600 million in hydropower, new nuclear initiatives at Ringhals, and grid upgrades.

• Strategic focus remains on fossil-free energy, grid upgrades, and renewables, with ongoing partnerships in battery storage and EV charging.

Financial highlights

• EBITDA dropped 42% year-over-year to SEK 25.4 billion; EBIT down 56% to SEK 14.4 billion.

• Adjusted profit for the period was SEK 9.9 billion, down from SEK 17.3 billion.

• Cash flow from operating activities decreased to SEK 6.2 billion from SEK 27.5 billion.

• Net debt increased to SEK 9.7 billion; adjusted net debt rose to SEK 81.4 billion.

• Electricity generation declined to 50.6 TWh from 54.0 TWh year-over-year.

Outlook and guidance

• Focus remains on renewables, grid investments, and new nuclear development, with ambition for a new reactor at Ringhals in the mid-2030s.

• Ongoing efforts to optimize battery storage and expand EV charging infrastructure.

• Price hedging for Nordic generation remains high for 2025, with decreasing ratios for subsequent years.

• Electrification pace is slower than expected, but climate goals and investment predictability remain priorities.