Verbund AG
VSE:VER
Verbund AG
In the verdant heart of Austria, Verbund AG emerges as a powerhouse in the realm of renewable energy, deftly harnessing the potential of natural resources to fuel Central Europe. As Austria's leading electricity provider and one of the largest producers of hydropower in Europe, Verbund's storied journey is deeply intertwined with its strategic embrace of sustainable practices. Water, the life force coursing through the nation’s rivers, serves as the company's primary conduit for electricity generation. The firm operates approximately 128 hydropower plants, offering a glimpse into its massive scale and efficiency. These facilities not only cater to an ever-growing demand for clean energy but also exemplify Verbund's commitment to balancing economic success with ecological stewardship. Its operations extend beyond borders through innovative power trading and distribution networks that cater to a broad range of clientele, including industrial giants and regional utilities.
Beyond its hydropower roots, Verbund is strategically expanding its reach within the renewable energy sector by diversifying into wind and solar power ventures. This diversification serves as a bulwark against the unpredictable ebbs and flows of water levels, ensuring a steady stream of revenue despite climatic fluctuations. Complementing its energy-production capabilities, Verbund engages in robust energy trading practices across European power exchanges, leveraging its expertise to optimize returns and manage risks effectively. The company also invests in the integration of cutting-edge technologies and sustainable solutions to maintain its competitive edge and cater to an eco-conscious consumer base. In essence, Verbund stands as a testament to the seamless blend of tradition and innovation, continually reinventing itself to thrive amidst the dynamic tapestry of the global energy landscape.
In the verdant heart of Austria, Verbund AG emerges as a powerhouse in the realm of renewable energy, deftly harnessing the potential of natural resources to fuel Central Europe. As Austria's leading electricity provider and one of the largest producers of hydropower in Europe, Verbund's storied journey is deeply intertwined with its strategic embrace of sustainable practices. Water, the life force coursing through the nation’s rivers, serves as the company's primary conduit for electricity generation. The firm operates approximately 128 hydropower plants, offering a glimpse into its massive scale and efficiency. These facilities not only cater to an ever-growing demand for clean energy but also exemplify Verbund's commitment to balancing economic success with ecological stewardship. Its operations extend beyond borders through innovative power trading and distribution networks that cater to a broad range of clientele, including industrial giants and regional utilities.
Beyond its hydropower roots, Verbund is strategically expanding its reach within the renewable energy sector by diversifying into wind and solar power ventures. This diversification serves as a bulwark against the unpredictable ebbs and flows of water levels, ensuring a steady stream of revenue despite climatic fluctuations. Complementing its energy-production capabilities, Verbund engages in robust energy trading practices across European power exchanges, leveraging its expertise to optimize returns and manage risks effectively. The company also invests in the integration of cutting-edge technologies and sustainable solutions to maintain its competitive edge and cater to an eco-conscious consumer base. In essence, Verbund stands as a testament to the seamless blend of tradition and innovation, continually reinventing itself to thrive amidst the dynamic tapestry of the global energy landscape.
Hydro Production: Extremely low hydro production due to poor snow and rainfall impacted Q1 results, with the hydro coefficient at just 0.83—down 46 percentage points from last year.
Q1 Financials: EBITDA dropped 18.1% to EUR 723.9 million and group result fell 21% to EUR 397 million, mainly due to lower hydropower output.
Renewables: Wind and PV production were also weak, but the renewables segment's EBITDA rose 4% to around EUR 60 million on stronger prices.
Grid Segment: Electricity grid EBITDA jumped to EUR 127 million, leading to raised full-year grid EBITDA guidance to EUR 300 million.
Outlook & Guidance: Full-year 2025 EBITDA is guided at EUR 2.7–3.2 billion and group result at EUR 1.35–1.7 billion, assuming average hydro/wind/PV output for Q2-Q4.
Cash Flow and Debt: Free cash flow after dividends dropped to EUR 289 million, but net debt decreased to EUR 1.69 billion.
CapEx Ramp-up: Significant CapEx ramp-up planned for the rest of 2025, with around EUR 1.9 billion expected for the year.
