EVN Q1 2025/26 slides: revenue rises as networks offset generation slump

EVN AG (WBAG:EVN), the Austrian utility company, presented its Q1 2025/26 results on February 25, 2026, revealing that revenue climbed 3.3% year-over-year to EUR 830.7 million as the company's diversified business model helped offset significant challenges in its power generation operations amid volatile market conditions. Despite the revenue growth, profitability metrics declined with EBITDA falling 2.2% to EUR 247.4 million, reflecting the company's ongoing transition toward renewable energy. The stock traded at EUR 29.4, up 1.02% on the day, hovering near its 52-week high, suggesting investor confidence in EVN's long-term strategy despite near-term operational headwinds. The quarter demonstrated stark contrasts across EVN's business segments, with the generation division experiencing severe pressure while networks delivered exceptional growth. The Generation segment saw electricity generation volumes decline 12.6% to 578 GWh, with renewable sources down 9.8% and thermal generation plummeting 34.4%. This resulted in a 27.3% revenue collapse to EUR 73.6 million and a 69.1% drop in EBIT to just EUR 14.1 million, attributed to lower water and wind flows compared to the prior year and declining wholesale market prices. In contrast, the Networks segment emerged as the star performer, with revenue surging 22.6% to EUR 238.8 million and EBIT nearly doubling, jumping 83.7% to EUR 76.9 million, driven by regulatory tariff adjustments that compensated for lower distribution volumes. EVN is executing an ambitious capital deployment strategy focused on grid modernization and renewable energy expansion, with annual investments of approximately EUR 1 billion through 2030. Up to EUR 470 million annually is being directed toward network infrastructure, with 65% allocated to low- and medium-voltage grids. The company plans to install 1,000 kilometers of medium- and low-voltage cables annually, add 700 new transformer stations each year, and build or expand 55 substations by 2034. Despite the intensive investment program, EVN maintained a solid financial foundation with an equity ratio of 60.4% and net debt of EUR 1,326.5 million representing a gearing ratio of 19.5%. The company reaffirmed its full-year 2024/25 guidance, projecting group net result in the range of EUR 430-480 million, with Q1 results representing approximately 27-30% of the midpoint target.