Finland · Delayed Price · Currency is EUR Fortum Oyj Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 saw lower achieved power prices and operating profit, but strong cash flow and robust liquidity. The Elmera ASA acquisition and Meri-Pori coal plant closure mark key strategic moves, while guidance for optimization premium and CapEx remains unchanged.
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Q1 2026 saw higher achieved power prices and strong hydro output, driving increased profits despite lower cash flow from higher working capital. Guidance for optimization premium and CapEx remains unchanged, with robust liquidity and ongoing site development for data centers.
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The AGM reviewed strong financial results, approved a 90% dividend payout, and expanded the board to 10 members. Strategic focus remains on growth, renewables, and resilience amid geopolitical and market uncertainties.
Fiscal Year 2025
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2025 saw lower generation volumes and earnings due to nuclear outages, but strong liquidity and a robust renewables pipeline. Dividend of €0.74/share proposed, with 2026 guidance showing stable hedging, continued cost discipline, and growth in renewables.
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Management outlined a strategy centered on Nordic decarbonized power, targeting EUR 330 million profit growth by 2030 through operational excellence, renewables, and flexibility solutions. Capital discipline, new hedging targets, and a robust dividend policy support growth, while data center and industrial demand drive future opportunities.
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Q3 saw higher achieved power prices but lower generation volumes due to hydro and nuclear outages, leading to decreased profits. Consumer Solutions delivered record results, while the renewables pipeline expanded and cost reduction programs progressed.
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Record low hydro and nuclear volumes led to weaker financials, but strong hedging and consumer solutions performance provided some offset. Outlook for 2025 remains cautious due to continued operational challenges, while growth investments and cost reductions are on track.
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Q1 2025 saw strong achieved power prices and optimization premiums, but lower hydrogeneration and nuclear volumes led to a decline in operating profit and EPS. The company strengthened its position in Poland, divested Indian renewables, and maintained a robust balance sheet with leverage at 0.0x.
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The meeting reviewed strong financials despite lower power prices, highlighted a robust balance sheet, and announced a €1.40 per share dividend. Strategic focus included divestments, efficiency gains, and major investments in renewables and decarbonization.
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Significant electricity demand growth in the Nordics is driving the need for reliable, low-emission power. New nuclear is seen as a long-term option, but requires government risk-sharing, strong customer demand, and co-investors. Three technologies are shortlisted, with project development now entering a new phase.
Fiscal Year 2024
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2024 saw strong operational execution amid challenging market conditions, with lower power prices impacting profits but efficiency gains, divestments, and robust liquidity supporting a special dividend proposal. Strategic decarbonization and renewables progress continued, while new investments remain cautious due to market prices.
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Q3 saw lower profits due to weak power prices, but strong liquidity and cost controls supported results. Strategic divestments and investments in clean energy continue, with robust hedging and a focus on reducing fixed costs. Nordic demand is strong, but industrial growth lags.
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Q2 and H1 results showed resilient performance despite lower power prices, with improved hydro volumes and segment profits outside generation. Major divestments strengthened the balance sheet, and guidance remains for cost reductions and stable dividends amid ongoing market volatility.