Comments on the financial results
With EBIT of CHF 51 million and a group profit of CHF 34 million, Repower achieved a solid result in the first half of 2026.
Overall results
With earnings before interest and tax (EBIT) of CHF 51 million (prior year CHF 65 million) and a group profit of CHF 34 million (CHF 47 million), Repower achieved a solid result in the first half of 2026. Despite the decline on the comparable period the previous year, both figures are above the average for the first halves of the years prior to 2023. The exceptionally good results for 2023 onwards were largely driven by positive hedging effects from the period of high prices on the energy markets, which gradually tailed off in subsequent years and had largely been exhausted by the reporting period. The Repower Group’s equity ratio is 58 per cent, versus 59 per cent at the end of the prior year.
Market environment
In the first half of 2026, the markets relevant to Repower – namely Switzerland and Germany (the Market Switzerland segment) as well as Italy (the Market Italy segment) – saw robust demand for electricity, a further increase in the share of renewables and volatile prices. Photovoltaics and wind power continued to grow in Europe. Compared with the first half of 2025, average wholesale prices remained stable overall or rose slightly. In Switzerland, market conditions were determined by hydropower and reservoir management. As at the reporting date, reservoir levels were below the long-term average. The dominant factors in Italy were the strong role of photovoltaics, the continued significance of conventional power generation, and a structurally determined net import position. Our presence in markets with differing generation mixes and price structures has enhanced the diversification of risks, with the effects of developments in weather, demand and energy prices on volumes generated, procured and sold varying in Switzerland, Italy and Germany.
Development of sales and gross energy margin
Net sales from goods and services declined to CHF 929 million from CHF 1,062 million in the prior-year period. At the same time, energy procurement fell from CHF 864 million to CHF 740 million. The energy gross margin, defined as the difference between net revenue from energy business and energy procurement, decreased 5 per cent from CHF 179 million to CHF 170 million. Despite lower net revenue, the energy gross margin remained largely stable, as the cost of energy procurement also fell significantly.
Market Switzerland segment
In Switzerland, the hydrological conditions for hydropower generation were unfavourable in the first half of 2026. The spring was, on the whole, very warm and dry, and precipitation levels were significantly below the usual average. Consequently, the volume of energy generated fell well short of expectations.
This had a negative impact on the energy gross margin. At the same time, low reservoir levels widened the price differentials between European markets and increased the value of flexible hydropower generation, which benefited the trading business. The energy gross margin declined by CHF 11 million overall from CHF 115 million to CHF 104 million.
The prior year, impairment losses of CHF 5 million had been recognised on hydropower plants owing to lower electricity price forecasts.
The comparable prior-year period benefited from the transfer of the PLUG’N ROLL business unit to third parties. The gain on disposal and the associated release of a provision for onerous contracts resulted in a positive effect totalling CHF 2 million.
The Market Switzerland segment saw EBIT decline to CHF 42 million versus CHF 50 million the prior year. Nevertheless, the segment remained the group’s most important contributor to earnings, driven in particular by the international trading business.
Market Italy segment
In the first six months, the Market Italy segment saw the energy gross margin increase by CHF 2 million over the prior-year period to CHF 66 million. The increase is primarily attributable to trading activities in Milan. This was offset by lower margins in the sales business and Renewable. Owing to technical limitations, Teverola combined cycle gas turbine plant was only deployed sporadically.
Factors with a positive impact on margins were more than offset by an increase in other operating expenses. After having been exceptionally low in the previous year, these expenses grew by CHF 3 million, primarily owing to scheduled marketing and communications campaigns designed to further boost the sales business. All in all, this development therefore had a negative impact on operating income.
EBIT for the Market Italy segment came to CHF 16 million, below the prior-year figure of CHF 18 million.
“Other segments and activities” segment
The segment’s other costs remained stable compared with the prior-year period. The prior year’s results had benefited from a capital gain on the sale of the former industrial site in Ilanz. The sale resulted in a profit of CHF 5 million. At the same time, a provision of CHF 1 million was set aside for existing environmental liabilities.
EBIT in other segments and activities came to around CHF –7 million (prior year CHF –3 million).
Net financial income
At CHF –7 million, net financial income was in line with the prior year. Higher losses arising from the measurement of foreign exchange items at the reporting date, with a pronounced depreciation in the euro, were largely offset by lower losses on forward foreign exchange contracts.
Earnings before tax
Earnings before tax came to CHF 44 million, CHF 14 million under the prior-year level. At the same time, income taxes fell from CHF 11 million to CHF 10 million. The effective income tax rate rose from 19 to 23 per cent.
Asset situation
Total assets increased CHF 29 million compared with the end of 2025 to CHF 2,113 million. This is primarily attributable to an increase in tangible assets (CHF +22 million) and a slight rise in current assets (CHF +7 million). On the liabilities side, the increase in the balance sheet was predominantly financed by additional borrowings: A CHF 36 million increase in liabilities more than offset a CHF 7 million decline in equity. On 30 June 2026, equity amounted to CHF 1,223 million, compared with CHF 1,230 million at the end of 2025. Despite this slight shift towards liabilities, the capital structure remains sound, with an equity ratio of 58 per cent (59 per cent).
Liquidity situation
Despite lower group earnings of CHF 34 million compared with CHF 47 million the previous year, Repower generated cash flow from operating activities of CHF 111 million, compared with CHF 62 million in the corresponding period of the previous year. The release of funds from net working capital amounted to CHF 56 million, following the tying up of funds amounting to CHF 5 million the prior year.
Cash flow from investing activities amounted to CHF –68 million in the reporting period (CHF –88 million). The outflow of funds resulted primarily from investments in tangible and intangible assets totalling CHF –57 million (CHF –53 million), as well as from net investments in fixed-term deposits totalling CHF –18 million (CHF –31 million). The disposal of minority interests in Solis S.r.l. had a positive effect, resulting in a cash inflow of CHF 6 million.
Cash outflow from financing activities amounted to CHF 46 million, compared with CHF 63 million the prior year. Financial liabilities were reduced by a net amount of CHF 2 million, following a reduction of CHF 14 million the prior year. The net repayment for the current period includes a cash inflow of CHF 5 million from the pro-rata disposal of the intra-group shareholder loan to Solis S.r.l. to the purchaser of the Solis shares.
Cash and cash equivalents declined CHF 6 million to CHF 333 million at the end of the half year.
Net liquidity amounted to CHF 143 million on 30 June 2026, above the figure of CHF 128 million on 31 December 2025. It is calculated as cash and cash equivalents, current financial assets and fixed-term deposits less current and long-term financial liabilities including accrued interest. Current fixed-term deposits increased from CHF 60 million at the end of 2025 to CHF 75 million.
Outlook
The market environment for the second six months remains challenging. Developments in energy prices, volatility in the energy markets, the hydrological situation and the availability of generation assets will continue to shape earnings performance. Geopolitical uncertainties and low gas storage levels may further exacerbate price fluctuations. Repower’s ability to operate its hydropower plants flexibly remains of great economic importance to the company as well as contributing significantly to security of supply. With its diversified business model, its presence in several markets, its local roots in Graubünden and its solid financial base, Repower is well positioned and continues to expect a solid result for the 2026 financial year.