Finnish energy company Fortum reports a worse-than-expected interim report for the third quarter.
Sales fell 15.1 percent to EUR 929 million (1,094). “Nordic energy demand during the quarter was at the same level as last year, with an increase in non-industrial consumption. After showing signs of recovery earlier this year, industrial demand experienced a slowdown, especially in Sweden,” comments CEO Marko Rauramo.
Adjusted EBITDA amounted to EUR 175 million (254), expected 190.2, with an adjusted EBITDA margin of 18.8 percent (23.2).
Operating profit was EUR 60 million (123), expected 114.3. The operating margin was 6.5 percent (11.2).
Adjusted operating profit amounted to EUR 97 million (158), expected at EUR 114.3, with an adjusted operating margin of 10.4 percent (14.4).
The lower result is explained by a decline in the Generation segment, mainly due to lower production volumes but also due to lower hedging prices.
Profit after tax was EUR 52 million (132).
Earnings per share amounted to EUR 0.06 (0.14), expected at EUR 0.08.
Cash flow from operating activities amounted to EUR 131 million (349).
In the report, Fortum provides a capex forecast for the period 2025-2027 and writes that total investments are expected to amount to approximately EUR 1.4 billion, including maintenance but excluding acquisitions.
| Fortum, EUR million | Q3-2025 | Consensus | Change towards consensus | Q3-2024 | Change |
| Net sales | 929 | 925 | 0.4% | 1,094 | -15.1% |
| Adjusted EBITDA | 175 | 190.2 | -8.0% | 254 | -31.1% |
| Adjusted EBITDA margin | 18.8% | 20.6% | 23.2% | ||
| Operating profit | 60 | 114.3 | -47.5% | 123 | -51.2% |
| Operating margin | 6.5% | 12.4% | 11.2% | ||
| Adjusted operating profit | 97 | 114.3 | -15.1% | 158 | -38.6% |
| Adjusted operating margin | 10.4% | 12.4% | 14.4% | ||
| Net profit | 52 | 132 | -60.6% | ||
| Earnings per share, EUR | 0.06 | 0.08 | -25.0% | 0.14 | -57.1% |
| Cash flow from operating activities | 131 | 349 | -62.5% |
I started accumulating Fortum this year, though the report is bit lower than expected, it does not matter to me as a dividend investor. I see, in longer term and due to higher energy demands (data demands energy), this as a safe investment.
Busy And Useful 