Verbund Reports 32% Profit Drop Due to Weak Hydropower Output

Adding to the pressure, Verbund reported a €34.2 drop in the average sales price for its hydropower-generated electricity, falling to €92.6 per megawatt-hour (MWh). Company officials noted this reflected particularly high prices during the same period in 2025 rather than current market weakness.

Renewable Energy Offsets Some Losses

While hydropower performance dragged on earnings, Verbund saw stronger results from other renewable sources. Wind and solar generation rose by 13% compared to the first quarter of 2025, boosted by new installations coming online. Total production from wind and photovoltaic systems increased by 121 GWh to 697 GWh.

The renewable energy gains helped partially mitigate the hydropower shortfall but couldn't prevent broader financial declines. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 26.1% to €534.6 million, while revenue dropped 15.5% to €1.94 billion.

Revised Full-Year Outlook

Facing continued uncertainty about water conditions, Verbund adjusted its full-year guidance. The company now expects EBITDA between €2.1 billion and €2.5 billion, with net profit projected in the range of €1.0 billion to €1.2 billion.

The utility maintained its dividend policy, stating payout ratios would remain between 45% and 55% of adjusted net profit. Analysts will watch closely to see whether hydropower conditions improve through the remainder of 2026 or if Verbund needs to further revise its targets.