Electrica Reports Record 2025 Preliminary Profits and EBITDA, Highlighting Structural Shift

Distribution – tariff uplift, small volume growth, big share of EBITDA

Distribution revenues rose by RON 500.1 mn – up 10.6% – to RON 5,209.7 mn, helped by a 12.5% tariff increase under ANRE Order 97/2024 and a 1.5% increase in electricity volumes distributed. The distribution segment is the earnings anchor, contributing the majority of Group EBITDA (stated contribution 78.8%).

Operationally, Distributie Energie Electrica Romania served about 4.011 million users and distributed 18.03 TWh, up 1.5%. Investment execution was strong: RON 878.4 mn of projects were carried out and commissioned in 2025. Electrica reports a degree of realisation above plan – 110% against a planned RON 797.8 mn excluding additional works, and 115% when including additional works – plus RON 34.4 mn carried over from 2024. The Regulated Asset Base (RAB) is estimated at RON 8.6 bn at year end, which underpins future regulated returns and cash flow visibility.

Quick jargon check: RAB is the value of assets used to deliver the regulated network service; regulators allow a return on this base, which makes future earnings more predictable.

Company-only results – profits driven by financial income

On a separate (company-only) basis, Electrica S.A. posted a 2025 net profit of RON 91.8 mn, up 32.5%, with earnings per share of 0.27. The operating line was a loss of RON 96.8 mn, reflecting higher operating expenses, provisions, electricity purchases, depreciation and salary benefits. The swing factor was net finance income of RON 192.2 mn, mainly interest and dividends from the distribution subsidiary.

This tells you where cash generation sits in the Group: the networks and the now-improving supply arm fuel the holding company via dividends and interest. Dividend intentions for 2025 are not disclosed.

Renewables and storage – capacity building gathers pace

Renewable generation is small but growing fast. Produced electricity was 16.69 GWh in 2025, up 65.86%, following the start-up of the Vulturu and Satu Mare 2 photovoltaic parks in July and October 2025. Across the production segment, total aggregated renewable capacity in operation or development stands at 307.5 MW, of which 46.5 MWh are currently operational (unit as disclosed). The Group also plans approximately 1,169.5 MWh across 19 energy storage projects, signalling a serious intent to add flexibility to the system.

My take – the positives, the pressure points, and why it matters

Positives I like

• Record profitability – net profit RON 1,218.9 mn and EBITDA RON 2,383.3 mn – with operating leverage clearly visible.
• Supply turnaround – EBITDA up RON 650.5 mn to RON 572.4 mn after the cap ended, despite a 5% volume decline.
• Distribution resilience – tariff-led revenue growth, modest volume tailwind, and a higher RAB of RON 8.6 bn supporting future returns.
• Execution on investments – RON 878.4 mn commissioned and plans exceeded, which should feed into the regulated base.
• Early traction in renewables and storage – small today, but the pipeline direction is clear.

Pressure points to monitor

• Cash collection from the state – RON 2,518.3 mn in outstanding subsidies at year end, with RON 2,442.8 mn already submitted but uncollected.
• Financing drag – the consolidated financial result was a RON 347.3 mn loss, larger than 2024, which partially offsets operating gains.
• Regulatory dependence – performance is sensitive to tariff decisions and policy changes; restatements underline this complexity.

What to watch next

• Audited annual financial statements and the detailed notes on the 2024-2023 restatement and subsidy receivables.
• Cash conversion in 2026 – particularly the pace of collections on the RON 2,518.3 mn subsidy balance.
• Any guidance on capex, renewables