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Introduction & Market Context
TAURON Polska Energia SA (TPE) presented its H1 2025 financial results on September 17, 2025, highlighting significant performance improvements despite challenging market conditions. The Polish energy market saw domestic electricity consumption decrease by 2.36% to 83.31 TWh compared to H1 2024, while renewable energy sources (RES) increased their share in the National Power System to 23.96 TWh, representing a 1.6% increase year-over-year.
As shown in the following chart detailing the energy market situation, coal-based production declined by 1.4% to 51.53 TWh, while the market experienced rising daily SPOT and RB price amplitudes, an increase in installed PV capacity, and a significant rise in hours with negative electricity prices (265 hours versus 56 hours in the previous year):
Quarterly Performance Highlights
TAURON reported strong financial results for H1 2025, with EBITDA increasing by 20% year-over-year to PLN 4,224 million despite a 3% decline in revenue to PLN 17,299 million. Net profit showed a remarkable improvement, reaching PLN 2,055 million, which represents a PLN 2,570 million increase compared to H1 2024. The company also increased its capital expenditure by 23% to PLN 2,283 million, while improving its financial position with a Net debt/EBITDA ratio of 1.5x, down from 1.9x a year earlier.
The following chart summarizes TAURON’s key financial metrics for H1 2025:
TAURON’s performance was driven by improvements across multiple business segments. The Distribution segment remained the largest contributor to EBITDA at 62%, followed by RES at 15%, Generation at 12%, Heat at 8%, and Supply and Wholesale Trading at 3%. The company’s net electricity production increased by 10% to 5.47 TWh, with RES accounting for 16.2% of the total, an increase of 38 GWh compared to H1 2024.
The breakdown of individual segments’ contributions to H1 2025 results is illustrated in the following chart:
Detailed Financial Analysis
The 20% year-over-year increase in EBITDA was primarily driven by improvements in the Distribution and Generation segments. As shown in the following waterfall chart, the Distribution segment contributed an additional PLN 391 million to EBITDA, while the Generation segment added PLN 264 million. The RES segment contributed PLN 53 million, and the Heat segment added PLN 32 million. These gains were partially offset by a PLN 50 million decrease from the Supply and Wholesale Trading segment.
TAURON has strengthened its financial position, with the Net debt/EBITDA ratio improving to 1.5x as of June 30, 2025, compared to 1.9x a year earlier. The company’s available financing stood at PLN 6.2 billion as of June 30, 2025. The debt structure shows a reduction in gross economic debt and an increase in cash position compared to the previous year.
The following chart illustrates TAURON’s debt structure as of June 30, 2025:
TAURON has outlined an ambitious long-term financing strategy for its investment projects through 2035, with a total planned investment of PLN 100 billion. The funding will come from various sources, including own funds and debt financing (PLN 50-60 billion), subsidy sources and preferential term loans (PLN 20-30 billion), off-balance sheet instruments (PLN 10-20 billion), and equity partnerships and project finance (PLN 0.2 billion). The company has already secured PLN 16.9 billion from subsidy sources and preferential loans.
The planned sources of financing for TAURON’s investment projects until 2035 are illustrated in the following chart:
Strategic Initiatives
TAURON is accelerating its transition toward renewable energy sources while maintaining its strong position in the distribution segment. The company’s capital expenditure increased by 23% year-over-year to PLN 2,283 million in H1 2025, with significant investments in distribution infrastructure, renewable energy projects, and generation assets.
The following chart shows TAURON’s capital expenditure breakdown by segment for H1 2025 compared to H1 2024:
The company has several renewable energy projects currently under development, including wind farms (234.2 MW), photovoltaic farms (144 MW), and battery energy storage systems (24.4 MW), for a total of 403 MW. These projects are at various stages of completion and represent a significant step toward TAURON’s renewable energy targets.
The details of TAURON’s ongoing renewable energy projects as of June 30, 2025, are presented in the following overview:
TAURON has set ambitious targets for increasing its installed capacity in renewable energy sources and energy storage facilities by 2030. The company aims to add 1.5 GW of new renewable energy capacity, with projects already under in-house development totaling approximately 3.6 GW. This pipeline includes wind farms, photovoltaic installations, and battery energy storage systems at various stages of development.
The following chart illustrates TAURON’s progress toward its 2030 renewable energy capacity targets:
The company’s renewable energy development pipeline is further detailed in the following breakdown, showing the distribution of projects by type and development stage:
Forward-Looking Statements
TAURON has provided an updated outlook for 2025, projecting continued growth across its business segments. The Distribution segment expects a 3.1% rise in the distribution tariff, while the Generation segment anticipates an increase in the margin on electricity sales from coal assets. The Supply segment is expected to maintain a tariff level that fully covers costs and generates a positive margin, and the Heat segment projects a higher margin on sales and transmission of heat.
The company’s 2025 outlook is summarized in the following overview:
TAURON’s strategic focus remains on expanding its renewable energy portfolio, modernizing its distribution infrastructure, and improving operational efficiency. The company has added 290 MW of new installed capacity in renewable energy sources over the last 12 months and completed the construction of 216 MWt of gas-fired peaking and backup units. With a strong financial position and clear strategic direction, TAURON is well-positioned to navigate the ongoing energy transition while delivering value to its shareholders.
Full presentation:
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