Comments on the financial results
Repower closed the 2025 financial year with operating income (EBIT) of CHF 133 million and a group profit of CHF 101 million. A further strengthening in the equity ratio underscores the company’s solid financial position and sustainable development.
Introduction to the comments on the financial results
Repower’s 2025 results were above the long-term average, albeit lower than in the two exceptionally strong previous years. EBIT came to CHF 133 million (prior year CHF 175 million), while group profit was CHF 101 million (prior year CHF 138 million), again in the triple digits. The equity ratio increased by 6 percentage points to 59 per cent and has thus improved significantly in the last five years. This underscores the strong financial base that has been built up in recent years.
The following sections describe the most important factors influencing the 2025 financial year and provide an initial assessment of future developments.
Market environment and economic framework
The year 2025 saw a sharp increase in Swiss day-ahead electricity prices, which averaged around EUR 102 / MWh (up 34 per cent versus the prior year). The main driver was poorer-than-average hydrological conditions in Switzerland. The fact that prices increased more than in Germany meant that the spread between Switzerland and Germany developed positively again after a reversal in 2024, averaging around EUR 12 / MWh for the year.
The continued dynamic expansion of photovoltaics in Europe reduced the spreads between peak and base load to a very low level and increased the number of hours with negative prices. Overall, prices on the electricity markets remained highly volatile.
The energy available to Repower from its own generation assets, investments and procurement rights fell by around 490 GWh compared with the previous year. The decline is mainly attributable to the Market Italy segment, where the prolonged outage of the Teverola combined-cycle gas turbine power plant significantly reduced Repower’s own thermal production. While an increase in the volumes of electricity generated at the company’s own photovoltaic assets in Italy counteracted the decline, it was only partially enough to compensate for it.
The volumes of electricity available in the Market Switzerland segment were also below the previous year’s level. This was due in particular to weak snowmelt in the spring, which had a noticeable impact on the volumes of energy generated by the hydropower plants in Graubünden. However, given that nuclear energy procurement rights grew more strongly, thanks in particular to an increase in Repower’s interest in ENAG Energiefinanzierungs AG, the decline in power generation was significantly lower than in the Market Italy segment.
Development in sales and operating results
The Repower Group’s net sales from goods and services declined to CHF 1,957 million in 2025 (from CHF 2,452 million the prior year). This was due, among other things, to reductions in available electricity volumes and trading volumes. Energy gross margin shrank CHF 60 million to CHF 362 million (CHF 422 million), which was the main reason for a CHF 42 million decline in EBIT from CHF 175 million to CHF 133 million.
Market Switzerland
Energy gross margin in the Market Switzerland segment declined significantly on the previous year, down CHF 48 million to CHF 243 million (CHF 291 million). Below-average hydrological conditions in Switzerland led to lower volumes of electricity generated. Concession fees, including the expenses of free energy for municipalities, decreased by CHF 5 million.
Owing to revised, lower price forecasts, in the year under review impairment losses totalling CHF 12 million (CHF 2 million) were recognised on generation assets. These impairment losses related in particular to hydropower plants in Switzerland and wind power installations in Germany.
In the previous year, provisions for onerous contracts amounting to CHF 8 million had been recognised, CHF 4 million of which were for the restoration of a power plant to operational readiness. This provision of CHF 4 million was utilised in 2025.
In 2025, an expense of CHF 3 million was recognised for the expected costs of dismantling a pressure pipeline.
EBIT came to CHF 114 million in 2025, CHF 46 million under the prior year level (CHF 160 million). Despite the decline, earnings remain at a high level. The international trading business, which once again proved to be the most important earnings driver, made a significant contribution to this.
Market Italy
In the Market Italy segment, energy gross margin decreased by CHF 13 million to CHF 119 million (CHF 132 million) in the year under review. Teverola combined cycle gas turbine plant was unavailable for several months in 2025 owing to damage to a high-voltage cable connecting it to the national electricity grid.
Third-party services declined CHF 2 million in connection with the outage. Insurance expenses were also CHF 1 million lower than in the previous year. Scheduled depreciation was CHF 2 million lower, as some of the components had already been fully depreciated. On the other hand, an impairment loss of CHF 3 million was recognised for Teverola combined cycle gas turbine plant at 31 December 2025. This was triggered by a decline in the clean spark spread and lower revenue from the Italian capacity market.
Revenue from the construction of photovoltaic systems rose by CHF 10 million in 2025. By contrast, changes in inventories of sales orders resulted in a decline in inventories of CHF 5 million following an increase of CHF 1 million the previous year (representing a CHF –6 million year-on-year change). Overall, the increase in sales exceeded the contrary change in inventory, resulting in a positive net impact on earnings of CHF 4 million.
Personnel expenses increased by CHF 2 million in connection with the expansion of the workforce in the Market Italy segment. In sales, however, marketing and communications expenses fell by CHF 3 million because fewer advertising campaigns were carried out.
Sales expenses in 2024 included one-off expenses related to an incentive and training event for sales agents. Accordingly, expenses for sales agents in 2025 were CHF 2 million lower.
Losses on receivables were also CHF 1 million lower than the previous year.
EBIT in the Market Italy segment declined to CHF 27 million (CHF 28 million).
Other segments and activities
EBIT in other segments and activities came to CHF –8 million (prior year CHF –13 million). The improvement in the negative result was primarily due to a CHF 5 million gain on the disposal of non-operational properties in the year under review.
Net financial income
Negative financial income increased from CHF –9 million to CHF –15 million. The main drivers were losses of CHF –4 million (prior year CHF 0 million) on currency translation and forward exchange transactions, the result of a decline in the value of the euro against the Swiss franc. Interest income and expenses declined following the repayment of the CHF 150 million bond at the end of 2024 and the EUR 25 million green bond at the beginning of 2025, as well as owing to lower interest rates. Despite this, the net interest burden increased by CHF 1 million.
Earnings before tax and group profit
With earnings before tax of CHF 118 million (CHF 166 million), recognised income taxes declined from CHF 28 million to CHF 17 million.
Repower closed the 2025 financial year with a group profit of CHF 101 million (CHF 138 million).
Asset situation
Total assets fell in the 2025 financial year from CHF 2,235 million to CHF 2,084 million (–7 per cent).
Non-current assets
Non-current assets increased by CHF 52 million from CHF 1,053 million to CHF 1,105 million. The increase is mainly attributable to investments in tangible assets at the consolidated companies and additions in connection with company acquisitions.
In the 2025 financial year, a number of transactions resulted in changes to the scope of consolidation: Repower gained control of Resol Ciminna S.r.l. (acquisition of the remaining 50 per cent) and renewable community società benefit S.r.l. In addition, two project companies (B. Energie Castello di Annone S.r.l. and ESE Rizzuto S.r.l.) were acquired. The interest in new associate ENAG was also increased to 22.25 per cent.
Investments came to CHF 142 million in 2025. CHF 65 million of this fell to the Market Switzerland segment, primarily for the distribution grid, substations and power generation assets. CHF 77 million fell to the Market Italy segment, with a focus on renewables.
Current assets
Current assets declined by 17 per cent. The main drivers were significantly lower positive replacement values of held for trading positions (down CHF 148 million) and a decline in accruals and prepayments (CHF –63 million). At the same time, financial assets were shifted into current financial assets (CHF +59 million). This more than offset a slight decline in cash and cash equivalents (CHF –24 million.) Operationally, trade accounts receivable and inventories declined (together down CHF 28 million).
Equity
Very good group earnings of CHF 101 million, dividend payments (including distributions to minority shareholders) of CHF 49 million, translation losses of CHF 2 million and other movements of CHF –1 million resulted in equity of CHF 1,230 million at year end (previous year CHF 1,181 million). The equity ratio thus increased to 59 per cent (53 per cent).
Liabilities
Liabilities declined CHF 201 million from CHF 1,055 million to CHF 854 million. The main driver was a CHF 169 million decline in current liabilities. The primary reason for this was the lower negative replacement values of held for trading positions (down CHF 89 million) and a decline in deferred income and accrued expenses (down CHF 72 million). Added to this were further declines in current liabilities and provisions.
Non-current liabilities fell by CHF 32 million. The key driver was a reduction in non-current financial liabilities (down CHF 40 million). At the same time, current financial liabilities increased by CHF 27 million. Financial liabilities thus declined by CHF 13 million overall.
Other non-current liabilities increased by CHF 7 million. This was related above all to negative goodwill from the acquisition of control of Resol Ciminna S.r.l., which will be amortised over five years.
Liquidity situation
At CHF 339 million (prior year CHF 363 million), cash holdings, or the net cash and cash equivalents fund in the consolidated cash flow statement, were running at a high level.
Cash flow from operating activities before changes in net current assets remained more or less unchanged at CHF 169 million (prior year CHF 172 million). The main reason for the improvement in cash flow from operating activities was that fewer funds were tied up in net current assets. Investments in net current assets were CHF 24 million lower than the prior year. Cash flow from operating activities increased by CHF 21 million to CHF 221 million (prior year CHF 200 million) overall.
The 2025 financial year saw a net cash outflow of CHF 183 million from investing activities. Around CHF 116 million of this fell to investments in tangible and intangible assets (net), around CHF 13 million to corporate transactions (particularly ENAG, Resol Ciminna S.r.l., ESE Rizzuto S.r.l. and B. Energie Castello di Annone S.r.l.), and around CHF 61 million to net financial assets. This was offset by divestments totalling around CHF 7 million, primarily from the Maissen site and the PLUG’N ROLL AC charging infrastructure.
Free cash flow was again positive at CHF 38 million in 2025 (CHF 228 million). Repower thus generated more cash in the reporting year than was required for operating activities and investments. Together with the sustained high cash holdings, this formed the basis for the repayment of debts and the dividend distribution.
Cash outflows from financing activities decreased significantly, down from CHF –232 million the prior year to CHF –61 million in 2025. The main reason for this was the repayment of the Repower bond in the amount of CHF 150 million the previous year and the CHF 10 million higher dividend payment (including the dividend payment to minority shareholders) by Repower AG in 2024.
Cash and cash equivalents (liquid assets) totalling CHF 401 million exceed financial liabilities of CHF 273 million. Net liquidity of CHF –80 million the prior year increased to CHF –128 million in 2025.
Proposed dividend
Given Repower AG and the Repower Group’s very good annual results, strong capital structure and high levels of liquidity, the board of directors moves that the annual general meeting of 13 May 2026 approve, in addition to an ordinary dividend of CHF 5.00 per registered share, a special dividend of CHF 0.50 per registered share. This gives a total distribution of CHF 5.50 per registered share.
Outlook
Repower is on a solid financial footing. This gives us the necessary leeway to consistently tackle the tasks ahead in what remains a challenging market environment. The energy markets continue to be characterised by uncertainty and high volatility. The increasing share of wind and solar power is leading to more frequent oversupply and greater price fluctuations, even resulting in negative electricity prices. At the same time, flexibility, ancillary services and efficient system management are becoming increasingly valuable. This places greater demands on grid stability and forward-looking market and price management in the energy business.
In the next few years, Repower will make targeted investments in expanding its renewable generation assets as well as renewing and strengthening grid infrastructure. The focus will be on modernising and further developing our portfolio, better integrating renewables and increasing security of supply. Ongoing digitalisation, for example through smart meters and smart grid solutions, will facilitate more precise control, create greater transparency and help operate the grid on a stable and cost-efficient basis.
These measures will strengthen our long-term competitiveness and make an important contribution to a sustainable, future-proof energy supply. We expect a good result for 2026.