Energa Group’s favorable results after three quarters of 2025. Investments and business diversification are paying off

Energa Group has had a successful three quarters of 2025. Its EBITDA increased by 12 percent y/y to PLN 3.2 billion, and grew by as much as 44 percent (PLN 977 million) in the third quarter alone. The Group’s net profit also improved: it grew by 28 percent y/y (PLN 1.2 billion) in the first nine months of the year, and reached PLN 326 million in the third quarter. Electricity production also increased significantly – by as much as 20 percent – over the three quarters. Notably, renewable sources accounted for 46 percent of generation. Capital expenditures were also 9 percent higher.

Energa Group has consistently delivered solid financial performance despite the dynamic and volatile environment, and the challenges facing the energy sector.

“Stable performance is crucial given the challenges posed by the ongoing energy transition, which requires us to become increasingly diversified and flexible in our investment planning. Without neglecting the development of renewable sources, which have always been Energa's hallmark among Polish energy groups, we have also been heavily involved in balancing the National Power System and ensuring the security of energy supply. We have started the construction of two new gas-steam units: one in Gdańsk and another in Grudziądz. We are also upgrading our distribution grid, to which one-third of all RES capacity in Poland is connected, and we are planning energy storage projects as well. Such wide-ranging plans are possible precisely because of the Group's strong position in the power sector and its solid performance,” says Magdalena Kamińska, Acting President of the Management Board of Energa SA.

The Group’s performance in the reported period was influenced by a variety of factors, including lower electricity sales prices, which affected the Group’s revenues to some extent – for the three quarters of 2025, these amounted to PLN 15.9 billion (-5 percent y/y), and quarterly revenues amounted to PLN 5 billion (-4 percent y/y). Other relevant factors included lower costs of fuel (mainly coal) consumption, more frequent must-run operation of the Ostrołęka B Power Plant, and an increase in production as a result of completed RES projects.

For the first nine months of the year, Energa Group’s generation sources produced a total of 2.4 TWh of electricity (including 1.1 TWh from RES), and its distribution grids transmitted 17 TWh of electricity. The volume of retail sales was 12.5 TWh.

Three pillars of Group performance

In the reported period, the three Business Lines with the highest contribution to the Group’s EBITDA were, in order: Distribution, New Energy and Retail.

Distribution closed the three quarters of 2025 with EBITDA of PLN 2.4 billion (+6 percent y/y) and revenue of PLN 5.4 billion (+3 percent y/y). This was due, inter alia, to higher distribution margins resulting from favorable prices of power purchased to cover grid losses. The margin was also improved by higher distribution service volume, among other things. Also in the third quarter alone, Distribution generated stable EBITDA of PLN 806 million (+17 percent y/y).

The New Energy Business Line ended the reported period with EBITDA of PLN 324 million (-25 percent y/y). This was mainly the result of lower revenues from electricity sales, following decreases in production volumes primarily at hydroelectric power plants (due to less favorable hydrological conditions this year). However, it should be noted that compared to the first half of the year, the third quarter saw a marked increase in production from RES – by as much as 37 percent y/y. This was due primarily to photovoltaic sources, which more than tripled the volume of energy generated both in the first nine months of the year and in the third quarter alone. Wind farms also contributed to this performance, producing 16 percent more energy y/y in the third quarter (and 7 percent more energy y/y on a year-to-date basis).

In the third quarter, the Retail Business Line reported an increase in EBITDA to PLN 60 million. This was mainly due to a more favorable margin on electricity sales (owing, among other things, to a smaller impact of electricity price regulation). This margin was also the main driver of the improvement in the Retail Line’s EBITDA on a year-to-date basis for the three quarters of 2025 – it amounted to PLN 184 million (+61 percent y/y) despite the establishment of provisions for onerous contracts in connection with the new tariff approved by the President of the Energy Regulatory Office.

The Conventional Energy Business Line generated EBITDA of PLN 136 million in the reported period. The sustained improvement in financial performance has been due in part to the increase in production volumes at the Ostrołęka B Power Plant, which operated more frequently in the must-run mode, and lower coal consumption costs. These were reduced as a result of the ongoing project to optimize the operating costs of the Ostrołęka power plant.

In the first nine months of 2025, EBITDA of the District Heating Business Line amounted to PLN 31 million (a nearly threefold increase y/y). This is a result of, among other things, higher revenues from the sale of electricity from cogeneration sources (the biomass unit in Elbląg and the Żychlin Combined Heat and Power Plant).

Capital expenditure on the rise again

In the reported period, capital expenditure across the Energa Group increased by 9 percent compared to the first three quarters of last year and amounted to PLN 3.3 billion. The Distribution Business Line had the highest share of capex at 60 percent. As a result, Energa Operator upgraded and built 2,841 kilometers of grid. It also connected 46,000 new customers and 749 MW of new RES capacity. Moreover, in the third quarter, the leader of this Business Line, Energa Operator, annexed a low-interest loan agreement under the National Recovery Plan, increasing its amount to about PLN 9.4 billion. This will enable NRP funds to cover nearly 25 percent of the expenditure planned for the company’s largest-ever investment program, with a total value of PLN 40 billion.

The New Energy Business Line accounted for 21 percent of overall capital expenditure. The outlays were mainly related to the implementation of photovoltaic projects such as PV Kotla and PV Łosienice, where the installation of panels (totaling about 290,000 for both sites) and inverters has been completed. The 112 MW PV Serby project was also continued.

The Conventional Energy Business Line accounted for the third largest share of capital expenditures in the three quarters of this year at 13 percent. Within this Business Line, advanced work was underway on the designs for the Grudziądz and Ostrołęka gas-steam units, and contracts were also concluded with the general contractors of the new units – CCGT Gdańsk and CCGT Grudziądz II. Both new units received support in the third quarter of 2025 through the capacity catch-up auction for delivery year 2029, with a total of nearly 1.1 GW contracted under 17-year capacity agreements. Their combined revenues in this respect could amount to about PLN 9.5 billion. Within the Conventional Energy Business Line, work on upgrading power unit No. 3 at the Ostrołęka B Power Plant continued with a view to increasing biomass co-firing.

In the reported period, the District Heating Business Line continued to invest in more cogeneration (combined heat and power generation) sources. The 20 MWt and 20 MWe gas engine system in Kalisz has already been commissioned. A similar cogeneration system, with a capacity of 30 MWt and 30 MWe, is under construction at the Elbląg Combined Heat and Power Plant, which also received support in the reported period in the form of a 17-year capacity contract, as a result of participation in the capacity catch-up auction for delivery year 2029.