Comments on the financial results
Repower recorded good results in the first half of 2025 with operating income (EBIT) of CHF 65 million and a group profit of CHF 47 million. This solid basis will enable targeted investments in generation assets and distribution grids in an increasingly complex environment.
Overall results
Repower has recorded a successful first half of 2025, exceeding expectations with a group profit of CHF 47 million.
Earnings before interest and taxes (EBIT) were a good CHF 65 million. While this is less than the high level of CHF 97 million recorded the previous year, it demonstrates the company’s sustainable positioning in an environment of volatile electricity prices. Earlier hedging measures had a positive impact. The Repower Group’s equity ratio is 59 per cent (end of prior year: 53 per cent).
Market environment
The European electricity market was extremely volatile in the first half of 2025. The EPEX Spot Base Load for Germany rose from around EUR 70/MWh in the same period of the previous year to EUR 91/MWh (annual average for 2024: around EUR 80/MWh). This was initially due to weak wind power generation, which necessitated the increased use of cost-intensive gas-fired power plants. From March onwards, higher feed-in from wind and solar power plants provided relief on the price front. This development underscores the market’s great vulnerability to short-term supply shocks and the structural importance of renewable energy for price formation.
Development of sales and gross energy margin
Net sales from goods and services declined from CHF 1,211 million to CHF 1,062 million. Energy procurement also declined, down from CHF 981 million to CHF 864 million. The energy gross margin, which Repower defines as the difference between net revenue from energy business and energy procurement, fell from CHF 211 million to CHF 179 million. Energy gross margin relative to net revenues from energy business thus declined slightly from 18 per cent to 17 per cent.
Market Switzerland segment
In the first half of 2025, the volumes of hydropower generated declined owing to low precipitation. This eroded the energy gross margin to CHF 115 million from CHF 148 million the prior year. Concession-related charges declined CHF 3 million in connection with the lower volumes of electricity generated.
On 1 April 2025, the PLUG’N ROLL business unit’s activities in the AC charging infrastructure segment for real estate and fleet customers were transferred to AVIA VOLT, while DC fast charging remains with Repower.
Repower remains committed to electric transportation and is realigning its strategic focus with Repower E-Mobility. In future, the focus will be on planning, project management and implementation for high-performance DC charging solutions for public transport and heavy vehicles. The company thus remains an active player in what is a promising market segment.
During the reporting period, impairment losses of CHF 5 million were recognised on hydropower plants owing to lower electricity price forecasts. In addition, lower long-term earnings expectations led to the recognition of a provision of CHF 2 million for onerous energy procurement contracts.
Thanks to a successful trading result, the Market Switzerland segment posted EBIT of CHF 50 million (prior year CHF 88 million).
Market Italy segment
In the first half of 2025, the Market Italy segment achieved a slightly higher energy gross margin of CHF 64 million versus CHF 63 million in the same period the previous year. Positive contributions to earnings from both the sale and generation of renewable energy led to a slight increase in EBIT.
EBIT for the Market Italy segment came to CHF 18 million, above the prior year figure of CHF 16 million.
“Other segments and activities” segment
In the first half of 2025, Repower sold a former industrial site in Ilanz. This transaction resulted in a gain on disposal of CHF 5 million, which was recognised under other operating income. With regard to the future development of the sold property, there is a contractually agreed obligation to assume the costs of existing environmental liabilities. A provision of CHF 1 million was recognised for this under other operating expenses.
The segment’s other costs remained stable compared with the previous year. EBIT in other segments and activities came to around CHF –3 million (prior year CHF –7 million).
Net financial income
Net financial income was CHF 5 million lower than in the same period of the previous year. The main reason for this was a decline in interest income (down CHF 5 million), primarily due to lower income from fixed-term deposits. This was offset by lower interest expense (CHF +3 million) as a result of a decline in liabilities. Overall, this resulted in a CHF 2 million decline in net interest income.
Foreign exchange results, consisting of foreign currency valuation and results from forward foreign currency contracts, were CHF 4 million lower than in the previous year. The decisive factor was the weakening of the euro.
Earnings before tax
Earnings before tax came to CHF 58 million, CHF 37 million under the prior year level. Income taxes fell CHF 17 million to CHF 11 million, which translates into an increase in the group’s effective tax rate from 17 per cent to 19 per cent.
Asset situation
Repower’s balance sheet total declined from CHF 2,235 million on 31 December 2024 to CHF 2,010 million on 30 June 2025. The main drivers of this decline were a decrease in accruals and deferrals for goods and services delivered or received but not yet invoiced – mainly in the energy business – amounting to CHF 122 million and CHF 95 million respectively. Added to this were declines in the positive and negative replacement values of held-for-trading positions of CHF 68 million and CHF 71 million respectively. In this context, the net replacement values of held-for-trading positions increased from CHF 117 million to CHF 120 million.
In the first half of 2025, Repower recorded group earnings of CHF 47 million and distributed dividends totalling CHF 49 million. Exchange rate movements, in particular the weaker euro, also led to a slight decrease in translation differences in equity. On 30 June 2025, equity amounted to CHF 1,177 million, compared with CHF 1,181 million at the end of 2024. The change was mainly due to the interplay of earnings contributions, dividend payments and currency effects. Despite the slight decline, an increased equity ratio of 59 per cent (53 per cent) underscores the group’s continued solid capital base.
Liquidity situation
In the first half of 2025, Repower generated cash flow from operating activities of CHF 62 million (CHF 175 million). The CHF 113 million decline is attributable to the lower group earnings (CHF –31 million), which led to a reduction of around CHF 30 million in cash flow before changes in net current assets. In addition, the reporting period saw an investment in net current assets of CHF –5 million, compared with a divestment of CHF +78 million the previous year.
Cash flow from investing activities amounted to CHF –88 million in the period under review (CHF –50 million). The cash outflow was mainly due to investments in tangible assets, the investment of fixed-term deposits and strategic acquisitions. Of particular note was the acquisition of additional shares in ENAG Energiefinanzierungs AG in Switzerland (CHF –9 million), which is now recognised as an associate, and the acquisition of control of Resol Ciminna S.r.l. in Italy (CHF –2 million), which was previously recognised as a joint venture and is now fully consolidated.
Cash flow from financing activities came to CHF –63 million (prior year CHF –109 million), lower than the prior year. The net reduction in financial liabilities in the first half of 2025 amounted to approximately CHF 14 million. Shareholders of Repower AG and the minority shareholders were paid dividends of CHF 49 million (prior year CHF 60 million).
Cash and cash equivalents declined by CHF 89 million versus the end of the prior year, amounting to CHF 273 million at the end of the first half of 2025.
Net liquidity amounted to CHF 35 million on 30 June 2025, below the figure of CHF 80 million on 31 December 2024. It is calculated as the difference between cash and cash equivalents, current financial assets and fixed-term deposits on the one hand, and current and long-term financial liabilities including accrued interest on the other.
Outlook
Repower expects business to remain solid in the second half of 2025. However, the market environment remains challenging: Following the levels seen during the energy crisis in 2022, electricity prices are now falling, while volatility persists – driven by geopolitical tensions, weather-related impacts on power generation and structural changes. Rising electricity demand as a result of electrification and climate-related uncertainties is increasing the pressure to invest in grid infrastructure and flexible generation capacity. The implementation of the federal government’s Energy Strategy 2050 and limited connectivity to the EU electricity market pose additional challenges in terms of both regulation and market conditions. Repower is responding to these developments with targeted investments and a diversified business model.