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Introduction & Market Context
Elia Group (BR:ELI) presented its half-year 2025 results on July 25, showcasing significant financial growth and strategic progress in its Belgian and German operations. The transmission system operator continues to play a pivotal role in Europe's energy transition, with major investments in grid infrastructure and offshore wind connections.
The company's stock closed at €104.5 on the presentation day, down 1.79% from the previous session, despite the strong financial performance. This follows a broader pattern of market caution around utility stocks amid evolving regulatory frameworks, particularly in Germany.
Executive Summary
Elia Group reported a substantial 48.4% year-over-year increase in net profit to €269.6 million for the first half of 2025, driven by strong performance in both its Belgian and German operations. Group revenues reached €2,093.0 million, representing a 9.3% increase compared to the same period last year.
The company has successfully secured significant funding through a €2.2 billion equity package, including €850 million via private placement, positioning itself for continued infrastructure investments. Additionally, 50Hertz, Elia's German subsidiary, successfully placed €800 million in Green Bonds and secured a €1 billion "green loan" for offshore grid connections in the North and Baltic Seas.
As shown in the following key financial metrics:
Detailed Financial Analysis
Elia Group's strong performance was reflected across its business segments, with both its Belgian (ETB) and German (50Hertz) operations showing substantial growth. The company's net debt excluding EEG mechanisms decreased by 11.6% year-over-year to €11,636.8 million, while maintaining a solid fixed debt ratio of 98.2% and an average cost of debt of 2.9%.
The following chart illustrates the evolution of the Group's adjusted net profit:
In Belgium, Elia Transmission Belgium (ETB) reported a net profit of €129.8 million, a 31.7% increase compared to H1 2024. This growth was primarily driven by asset expansion, higher equity returns, and the recent capital raise, despite a 2.1% decrease in revenues to €763.0 million.
The Belgian operations' financial performance is detailed below:
The German operations through 50Hertz showed even stronger growth, with net profit surging 84.7% to €207.5 million and revenues increasing by 18.2% to €1,337.8 million. This exceptional performance was attributed to asset growth, robust onshore operations, and increased capitalized borrowing costs.
The following chart shows 50Hertz's financial results:
The Non-Regulated segment and Nemo Link (the interconnector between Belgium and the UK) reported a net loss of €11.8 million. Despite strong operational performance, returns from Nemo Link were capped, and holding costs increased due to last year's debt issuance.
Strategic Initiatives
Elia Group has strengthened its leadership team with Bernard Gustin as CEO and Marco Nix as CFO, along with new appointments across its Belgian and German operations. The company has also enhanced its governance structure with new board members, positioning itself for continued strategic growth.
A key focus area remains the Princess Elisabeth Zone, which includes an energy island and wind capacity up to 3.5GW, alongside the First Offshore Wind Energy Zone with 2.3GW of installed capacity. These projects are central to Elia's role in facilitating Europe's transition to renewable energy.
The company's debt management strategy has been particularly successful, as demonstrated by the net debt evolution:
Elia is also closely monitoring the German regulatory framework updates, which are progressing through various stages in 2025. The regulatory authority (BNetzA) is working on a comprehensive process involving all stakeholders, with key determinations expected by early 2026.
Forward-Looking Statements
For the full year 2025, Elia Group has provided a positive outlook with projected net profit between €490-540 million. The company plans significant capital expenditures totaling €5.1 billion, with €3.6 billion allocated to Germany and €1.5 billion to Belgium.
The detailed outlook for each business segment is presented below:
During the earnings call, CEO Bernard Gustin emphasized the company's pivotal role in the energy transition, stating, "The energy transition is accelerating, and our role as its enabler is more relevant than ever." He highlighted the importance of investments for grid stability and energy security, particularly in developing the North Sea as a future electricity powerhouse.
While the company faces potential challenges from regulatory changes in Germany and execution risks in major projects like the Princess Elisabeth Island, Elia Group's strong financial position and strategic focus on renewable energy infrastructure position it well for continued growth in the evolving European energy landscape.
Full presentation:
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