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Introduction & Market Context
Elia Group (BR:ELI) presented its half-year 2025 results on July 25, showing substantial profit growth across its operations despite a challenging market environment. The energy transmission system operator’s stock closed at €101.1 on July 24, down slightly by 0.3% ahead of the results announcement, but remains near its 52-week high of €106.8.
The company’s presentation revealed a significant 48.4% year-over-year increase in net profit, reaching €269.6 million for the first half of 2025. This performance was primarily driven by strong results in both its Belgian and German operations, alongside strategic financial initiatives to support its ambitious capital expenditure program.
Quarterly Performance Highlights
Elia Group reported robust financial results for the first half of 2025, with key performance indicators showing significant improvement compared to the same period last year.
As shown in the following key figures chart:
Group revenues reached €2,093.0 million, representing a 9.3% increase year-over-year. Net profit attributable to Elia Group shareholders jumped 48.4% to €269.6 million, while capital expenditure (CAPEX) stood at €1,488.6 million, down 14.2% compared to H1 2024.
The company also highlighted its operational performance with a health rate (wellbeing) of 96.3% and the addition of 421 new hires during the period, demonstrating its continued focus on human capital alongside financial growth.
Detailed Financial Analysis
The presentation provided a comprehensive breakdown of Elia Group’s financial performance, with detailed analysis of its net profit evolution and debt structure.
The following chart illustrates the components contributing to the Group’s adjusted net profit growth:
The strong performance was driven by solid results in both Belgium and Germany, though partially offset by higher non-regulated funding costs and capped returns from the Nemo Link interconnector.
On the balance sheet side, Elia Group’s net debt (excluding EEG) decreased by 11.6% year-over-year to €11,636.8 million, with a fixed debt ratio of 98.2% and an average cost of debt of 2.9%. The company maintains a BBB/stable outlook credit rating from S&P.
As shown in the net debt evolution chart:
The reduction in net debt was primarily driven by the equity raise, with the company noting that organic growth continues to be funded via operating cash flow and debt.
Belgian Operations
Elia Transmission Belgium (ETB) reported strong results for H1 2025, with net profit increasing by 31.7% year-over-year to €129.8 million, despite a slight 2.1% decrease in revenues to €763.0 million.
The following chart breaks down ETB’s net profit evolution:
The solid performance in Belgium was primarily driven by asset growth, higher equity return, and the capital raise, though partially offset by one-off financial costs related to the equity transaction.
German Operations
The company’s German subsidiary, 50Hertz Transmission, delivered exceptional results with net profit surging 84.7% to €207.5 million and revenues increasing 18.2% to €1,337.8 million.
As illustrated in the following profit evolution chart:
The strong performance in Germany was mainly attributed to asset growth and robust onshore operations, with continued increases in capitalized borrowing costs further supporting the results.
Strategic Initiatives
During the first half of 2025, Elia Group announced a €2.2 billion equity package to fund its infrastructure investments, including a secured €850 million private placement with key institutional investors.
The breakdown of the private placement participation is shown below:
The PIPE (Private Investment in Public Equity) transaction saw Publi-T/NextGrid Holdings taking the largest share with 44.8% (€380.7 million), followed by ATLAS Infrastructure with 27.6% (€234.6 million), while CPP Investments and BlackRock (NYSE:BLK) each contributed 13.8% (€117.3 million).
Additionally, Eurogrid successfully placed €800 million in Green Bonds and secured a €1 billion ’green loan’ to finance offshore grid connections in the North and Baltic Seas, further strengthening the Group’s commitment to sustainable financing.
The company also announced changes to its leadership team, with Bernard Gustin as CEO of Elia Group and Marco Nix as CFO, alongside new appointments at both the Belgian and German subsidiaries. These leadership changes are designed to strengthen governance and support the Group’s ambitious growth strategy.
Forward-Looking Statements
Elia Group provided a positive outlook for the full year 2025, with detailed projections for each of its business segments.
As shown in the following outlook chart:
For 2025, Elia Group expects net profit to reach €490-540 million, with total CAPEX of €5.1 billion. The German operations are projected to contribute €380-420 million in net profit with CAPEX of €3.6 billion, while Belgian operations are expected to generate €255-285 million in net profit with CAPEX of €1.5 billion. The Non-regulated segment and Nemo Link are anticipated to report a net loss of €35-45 million.
The company also highlighted ongoing developments in the German regulatory framework, which could impact future profitability. The regulatory update process is scheduled to run from Q1 2025 to Q1 2026, covering both TSO (Transmission System Operator) and DSO (Distribution System Operator) frameworks, as well as capital remuneration methodology.
Key elements of the German regulatory framework update include cost-plus models with added incentives, unified on-shore and offshore frameworks, and standardized WACC (Weighted Average Cost of Capital). However, the company noted that a comprehensive assessment of the impact on profitability is not yet possible as the framework is still in development.
Overall, Elia Group’s H1 2025 results demonstrate strong operational performance and strategic financial management, positioning the company well to deliver on its full-year targets and long-term growth objectives in the evolving European energy transmission landscape.
Full presentation:
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