Half Year 2026 BKW AG Earnings Call Transcript
Key Points
- Net profit increased by 7% year-on-year to CHF217.6 million, driven by strong performance from the Mühleberg/STENFO fund.
- Infrastructure and Buildings segment improved EBIT by CHF3.9 million and increased its EBIT margin from 3.2% to 3.7% despite lower revenue.
- Power Grid segment remained stable with total revenue slightly up and EBIT only marginally lower, supported by increased transmission volumes.
- Equity ratio strengthened to 52.3%, up 1.4 percentage points, and ROCE of 7% significantly exceeds BKW's cost of capital.
- Strategic progress includes commissioning the Cerignola wind farm phase 2, receiving permits for the Waltrop battery storage, and securing a green bond for grid investments.
- Free cash flow improved substantially to CHF96.6 million in H1 2026, up from CHF28.6 million in the prior year.
- Group EBIT declined 15.1% year-on-year to CHF262.7 million, primarily due to a 24.2% drop in Energy Solutions EBIT.
- Energy Solutions trading results were negatively impacted by erratic, non-fundamental price movements linked to Middle East geopolitical uncertainty, especially in Q1.
- Hydroelectric production remained below long-term averages due to persistent dry weather, with low reservoir filling levels in key regions like Grisons.
- Total revenue decreased 3.1% to CHF2.2 billion, driven by lower energy trading margins and reduced generation volumes.
- Power Grid EBIT fell 1.9% due to higher transmission costs and increased depreciation from the growing regulatory asset base.
- Management expects full-year 2026 EBIT to be at the lower end of the CHF650-750 million guidance range, reflecting ongoing challenges.
Good morning, ladies and gentlemen, dear participants. On behalf of BKW, I'd like to welcome you to the analyst and media conference on BKW AG's 2026 half year results. My name is Marisa Fetzer. I'm Head of Corporate Topics within BKW's Corporate Communications Department and will be facilitating this online event. I'd also like to welcome BKW's CEO, Robert Itschner; and BKW's CFO, Martin Zwyssig. They will be presenting BKW AG's half year results for 2026 shortly.
And on the cover of our 2026 half year report, you can see Markus Späth. He is Project Manager, LTB Leitungsbau, part of BKW's network. As part of the Ultranet project, LTB Leitungsbau is upgrading existing power lines on the section between Mannheim and Phillipsburg in Germany and erecting numerous new pylons.
The aim is to enable the simultaneous transmission of direct and alternating current along the same route. Ultranet thus increases the transmission capacity for transporting electricity from Northern to Southern Germany. Before I hand over to Robert Itschner, I would like
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