Finland's Fortum Q2 profit falls on lower power prices

Fortum Oyj

21/07/2026 07:11

    

    Overview
  
Finland energy firm's Q2 revenue and profit declined due to lower achieved power prices
Company announced plan to acquire Norway's Elmera Group to expand Consumer Solutions business
Fortum to close last coal-fired plant in Finland by March 2027 as part of net-zero push

    

    Outlook
  
Fortum estimates Nordic generation hedges at 80% at EUR 40/MWh for remainder of 2026
Company expects 2026 nuclear generation volumes of 23.0–23.5 TWh, revised from 23.5–24 TWh
Fortum expects 2026 committed capital expenditure of about EUR 550 mln, excluding acquisitions

    

    Result Drivers
  
LOWER ACHIEVED POWER PRICE - Fortum said Q2 results were impacted by a lower achieved power price, mainly due to lower physical value creation
NUCLEAR OUTAGES AND LOW SPRING FLOODS - Extended nuclear outages and low spring floods increased the realised hedge ratio, limiting ability to benefit from higher spot prices
HYDRO VOLUME ALLOCATION - Part of hydro volumes was allocated during Q1 due to higher power prices earlier in the year, affecting Q2 results

    
Company press release: ID:nWkr2bvBNZ

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 Sales
 
EUR 1.12 bln
 
Q2 EPS
 
EUR 0.12
 
Q2 Adjusted EBITDA
 
EUR 185 mln
 
Q2 Adjusted EBIT
 
EUR 106 mln
 
Q2 Adjusted Free Cash Flow
 
EUR 324 mln
 
Q2 EBIT
 
EUR 90 mln
 

    

    Analyst Coverage
  
The current average analyst rating on the shares is "sell" and the breakdown of recommendations is 1 "strong buy" or "buy", 9 "hold" and 11 "sell" or "strong sell"
The average consensus recommendation for the electric utilities peer group is "hold."
Wall Street's median 12-month price target for Fortum Oyj is €17.20, about 13.4% below its July 20 closing price of €19.86
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 22 three months ago

    

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)