Finland's Fortum Q2 profit falls on lower power prices

Fortum Oyj

21/07/2026 07:11

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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/Mis  Actual    Consensu
           s                   s
                               Estimate
 Q2 Sales            EUR 1.12   
                     bln       
 Q2 EPS              EUR 0.12   
 Q2                  EUR 185    
 Adjusted            mln       
 EBITDA                        
 Q2                  EUR 106    
 Adjusted            mln       
 EBIT                          
 Q2                  EUR 324    
 Adjusted            mln       
 Free                          
 Cash                          
 Flow                          
 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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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact .

(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.)