Energa Group’s Key Financial Metrics Increase. Strong Q1 Supported by Stable Distribution Performance and the Growing Contribution of Renewables

Delivering on its strategic growth vision remains one of Energa Group’s key priorities. Its consistent execution enabled the Group to build its Q1 2026 financial performance on two strong pillars: the traditionally most stable Distribution Business Line and renewable energy sources, which significantly strengthened during the period.

• Significant growth in key financial metrics: Group EBITDA increased by 28% year on year, net profit by 52%, and revenues by 9%.
• Stronger renewables performance: higher electricity generation from photovoltaic and wind farms (up 30% and 20% year on year, respectively), as well as from hydropower assets (up 13% year on year).
• Capital expenditure up 2% year on year, with the highest spending allocated to Distribution (network modernisation) and Conventional Energy (construction of CCGT units).
• Significant improvement in Retail Business Line performance: EBITDA of PLN 158 m (compared with a negative result in the corresponding period of 2025).

The beginning of the year saw a marked improvement in Energa Group’s key financial metrics. EBITDA increased by 28% year on year to PLN 1.5 bn. Revenues reached PLN 6.3 bn, representing a 9% increase compared with the corresponding period of the previous year. Net profit amounted to nearly PLN 800 m, up 52% year on year. In Q1, Energa Group generated close to 1 TWh of electricity (+9% year on year) and distributed 6.5 TWh (+6% year on year). Retail electricity sales totalled 5.3 TWh (+13% year on year).

“Energa Group is built on stable foundations, such as our distribution business, while at the same time effectively capitalising on emerging opportunities. This was reflected in a successful start to the year and a clear strengthening of our key business segments. These results are the outcome of consistent decision-making aligned with our strategic growth vision,” said Magdalena Kamińska, President of the Management Board of Energa SA. “The energy transition brings significant challenges, which we address mainly through proactive measures and the diversification of our generation portfolio.”

The strong results were driven primarily by the Distribution Business Line. The second-largest contribution to Group EBITDA during the reporting period came from the Retail Business Line.

Distribution EBITDA amounted to PLN 1.1 bn (+15% year on year). This reflected a 6% increase in electricity volumes distributed, including a 12% increase in volumes supplied to households, driven by lower temperatures during the first quarter.

As a result, electricity sales in the Retail Business Line also increased. EBITDA for the first quarter of 2026 amounted to PLN 158 m, representing an improvement of PLN 186 m compared with the first quarter of 2025 (when EBITDA was negative PLN 28 m). Performance also benefited from the gradual release of a provision established in December 2025 for onerous contracts related to household electricity tariffs. Adjusted for the impact of provision releases in both periods (Q1 2025/Q1 2026), Retail Business Line EBITDA improved from negative PLN 62 m to positive PLN 61 m.

A Higher Renewables Output

The New Energy Business Line reported EBITDA of PLN 147 m in the first quarter of 2026 (+46% year on year). The improvement was primarily driven by a substantial increase in renewable generation across all areas.

In total, renewable energy sources generated 0.4 TWh of electricity (an 18% year-on-year increase), accounting for 46% of total generation from the Group’s assets (compared with 42% a year earlier). The highest growth percentages were recorded by photovoltaic farms (+30% year on year) and wind farms (+20%). Hydropower plants increased output by 13% compared with the first quarter of 2025, supported by more favourable hydrological conditions.

Reliability of Generation Assets

EBITDA generated by the Conventional Energy Business Line amounted to PLN 41 m in the first quarter of 2026 (down PLN 51 m year on year). Its share of total Group EBITDA was 3% (compared with 8% in the first quarter of 2025).

Although electricity generation increased by 4% as a result of colder winter conditions, lower average electricity selling prices achieved by the Ostrołęka coal-fired power plant negatively affected year-on-year performance.

Other key factors influencing EBITDA in this Line in the first quarter of 2026 included the cost of primary fuels used in generation activities (Group generators consumed approximately 9,000 tonnes more hard coal and around 4,000 tonnes more biomass than in the corresponding period of the previous year), high costs of emission allowances, and the level of revenues from ancillary services.

Generation of electricity in the Group’s CHP plants was closely linked to the production of heat, which was largely dependent on heat demand from the Group’s local customers and the availability of its heat generation and co-generation units. Within the District Heating Business Line, colder winter conditions did not translate into improved year-on-year performance, mainly due to lower heat sales prices.    

Network Upgrades and Balancing Sources

During the reporting period, Energa Group’s capital expenditure increased by 2% year on year to PLN 0.8 bn. Of this amount, 64% was allocated to the Distribution Business Line, which maintained strong investment momentum under its ambitious network upgrade and expansion programme. As a result, 704 kilometres of distribution lines were modernised or constructed in the first quarter of 2026, enabling the connection of 12,000 new customers and 232 MW of new renewable generation capacity.

The second-largest recipient of capital expenditure (PLN 139 m) was the Conventional Energy Business Line. Progress accelerated on the construction of the CCGT Gdańsk and CCGT Grudziądz II gas-fired combined-cycle units. In both projects, preliminary earthworks were carried out and preparations were made for piling works for the foundations of key facilities (turbine-generator sets and heat recovery steam generators).

At the same time, the New Energy Business Line continued to advance photovoltaic projects, including the PV Kotla project. Preparations were also underway for the launch of a tender for Energa Group’s first-ever hybrid projects combining renewable energy sources with energy storage systems (which was announced in the second quarter). Within the District Heating Business Line, work continued on the advanced gas-engine cogeneration project at the Elbląg CHP plant, as well as on the peak-load and reserve boiler plant project in Ostrołęka.