Sales Revenues and Profitability
In 2025, the Baltic energy sector experienced significant developments and challenges, both of which had a major impact on energy security and prices. The energy market, which was previously stable and predictable, has undergone rapid changes in recent years, with prices becoming increasingly volatile.
In 2025 sales revenue totalled EUR 1,646.9 million, an 8% decrease year-on-year. EBITDA declined to EUR 317.2 million, an 20% decrease year-on-year. Reported net loss for the year was EUR 82.6 million (EUR -95.5 million year-on-year). The net loss for 2025 includes asset impairments in the amount of EUR 197.6 million, of which EUR 194.5 million are related to oil production assets. While the Group reported a net loss due to a one-off impairment, the underlying business remained profitable. Profit excluding this oil production related impairment amounted to EUR 111.9 million in 2025, demonstrating that the Group generated a positive result from its ongoing operations.
Lower profitability mainly reflected the decline in electricity prices and fuel market prices. However, at the same time, the distribution segment continued to demonstrate strong and stable performance.
CFO Marlen Tamm commentary:
"In the changed operating environment, we adjusted our business model and Group structure in 2025 to better align with market conditions. In the new financial year, we can focus on restoring our investment capacity in order to ensure the necessary developments in generation capacities and the long-term security of energy supply.
The competitiveness of fossil fuel-based generation is increasingly influenced by CO2 price levels, energy policy direction and capital market expectations. When assessing the carrying value of production assets, we rely on long-term forecasts that take into account the uncertainty related to global liquid fuel market prices.
Eesti Energia entered 2026 with a renewed management structure. Business activities are organised into three subsidiaries: Enefit, which consolidates the electricity business; Enefit Industry, which focuses on industrial operations; and Elektrilevi, responsible for distribution network operations. The objective of these changes is to increase flexibility, clarity and accountability, while strengthening the Group's position as a regional energy company."
Renewable Generation and Electricity Sales Segment
Sales revenue from renewable generation and electricity sales amounted EUR 751.5 million, a 17% decrease year-on-year, mainly due to a decline in market prices despite stable sales volumes.
Renewable electricity generation increased by 6% (+128 GWh) to 2.3 TWh in 2025. The largest share of renewable energy came from wind farms, which produced 1.8 TWh of electricity (+8% year-on-year, +128 GWh). The main growth drivers in renewable generation were Sopi-Tootsi in Estonia and Kelme I and Kelme II in Lituania, which contributed 704 GWh of wind power during the year (+503 GWh). Retail electricity sales volumes decreased by 5% (478 GWh) to 9.4 TWh.
EBITDA from renewable energy and electricity sales amounted to EUR 87.2 million in 2025 (-46% year-on-year, EUR -73.1million). The key driver behind decline was lower electricity market prices through margin impact (EUR -102.6 million), outweighing the benefit from increase in volume (EUR +5.8 million). On the positive side, gains on derivatives had a favourable impact of EUR 22.7 million, reflecting successful hedging activities. Other factors remained broadly stable.
The electricity market in 2025 was characterised by high price volatility and a record number of very low and zero-price hours, driven by strong renewable generation and transmission constraints in the region. This resulted in downward price pressure during peak renewable production periods. Looking ahead, we expect the market to gradually stabilise, supported by the development of system services markets and the increasing integration of battery storage, which should reduce the frequency of very low-price hours and improve the ability of renewable generation to access the market more efficiently.
Non-Renewable Electricity Production
Revenue from non-renewable electricity production declined by 15% (EUR -30.4 million) year-on-year to EUR 174.8 million, mainly due to the decrease in sales prices and production volume.
In 2025, we produced 1.4 TWh of non-renewable electricity, an 18% (295 GWh) less than in 2024. The decline resulted from market conditions defined by low electricity market prices.
Segment's EBITDA for 2025 was EUR -13.3 million, compared to EUR 18.0 million a year earlier. This was mainly due to lower market prices, which reduced EBITDA by EUR 22.3 million compared to 2024.
Despite weaker results in 2025, fossil-based generation facilities remain critical strategic assets, providing both - flexible power generation and frequency services. Notably, Estonia has been lacking a compensation mechanism for maintaining strategic reserve power services, meaning Eesti Energia has been providing this functionality at no cost. However, a new regulation effective from 1 January 2026 enables the Transmission System Operator (TSO), Elering, to procure reserves to ensure region's energy security. This will provide approximately EUR 59.5 million per year in compensation for maintaining dispatchable capacity and system stability, which was not in place before.
Distribution Segment
Distribution service revenue increased by 5% year-on-year (EUR +15.8 million) to EUR 321.5 million, while sales volume remained stable (+0,6%), amounting to 6.6 TWh (+41 GWh). Distribution EBITDA improved to EUR 132.3 million (+23% year-on-year), driven by increased distribution tariffs, which improved EBITDA by EUR 17.5 million. EBITDA was also improved by a decrease in fixed costs, which improved EBTIDA by EUR 5.7 million. Related to fixed costs, we have reduced the amount of work we outsource, and increased our own employees involvement in the repair and maintenance of the distribution network, which has increased efficiency.
Shale Oil Segment
In 2025 the shale-oil segment was affected by lower fuel market prices and unexpected maintenance outages. Sales revenue amounted EUR 150.0 million, a 16% decrease year-on-year, as sales volume decreased to 393.8 thousand tonnes, a 9.5% decrease year-on-year. The decline in revenue and volumes was mainly impacted by the long-term repairs carried out at the oil plants, which reduced the shale oil output as well as sales opportunities. The average market sales price of shale oil decreased to EUR 360.9 per tonne, while our achieved sales price averaged EUR 381.0 per tonne. Including the impact of hedging, the sales price was approximately 7% lower year-on-year, whereas without hedges the decline would have been around 17%. This demonstrates the effectiveness of our updated hedging policy, which primarily relies on financial options.
Production reached 378.4 thousand tonnes in 2025, which is 16% less (73 thousand tonnes) than in 2024. The decline in production volume is mainly attributable to the general overhaul at the Enefit 280-1 oil plant.
Segment EBITDA was EUR 47.3 million, down 59% year-on-year, primarily due to lower sales prices and sales volumes. These negative effects were partly offset by derivative gains of EUR 27.8 million and lower fixed costs of EUR 9.7 million, mainly driven by reduced payroll and maintenance expenses. The year-on-year comparison is also impacted by a one-off item in 2024, when additional free CO2 allowances increased EBITDA by EUR 64.8 million, making the current decline appear more pronounced.
Other Products and Services
Revenue from other products and services increased by 28% year-on-year to EUR 249.1 million, mainly driven by strong growth in frequency services, which generated revenue of EUR 54.3 million (EUR +45.3 million). Revenue from the sale of natural gas decreased by EUR 16.2 million, while revenue from the sale of heat increased by EUR 4.2 million.
EBITDA for the segment increased to EUR 63.7 million. The main growth driver was frequency services (EUR +57.0 million). The profitability of frequency services was significantly impacted by the exceptional market situation in the first half of the year, primarily due to the connection of the transmission network to the continental European grid. In the second half of the year, the frequency services market stabilised. Conclusively, Frequency services remain an integral part of the electricity system and the Group's income, but with less spectacular returns compared with the first half of 2025.
Investments
The Group's investments in 2025 totalled EUR 459.2 million, a 37% decrease year-on-year (EUR -264.4 million). Investments in renewable energy totalled EUR 144.8 million, a 63% decrease year-on-year (EUR -244.8 million), focusing on Kelme II wind farm in Lithuania, the Sopi-Tootsi wind farm in Estonia and solar Strzalkowo solar park in Poland.
In 2025, we allocated EUR 102.6 million of our distribution investments to improving network reliability and EUR 65.2 million to distribution network connections in total. We built 395 substations and 1,299 km of power lines (2024: 363 substations and 1,237 km of power lines).
Investments into the new shale oil plant in 2025 totalled EUR 47.5 million. Construction is nearing completion, since the equipment has been installed and the plant has reached mechanical readiness. Once operational, the plant will provide employment for around 150 people.
Importantly, we consider the intensive CAPEX cycle of recent years to be over. Going forward, the Group will prioritise enhancing returns and efficiency across its existing asset base.
Financing and Liquidity
The Group's borrowings at the end of 2025 amounted to EUR 1,612 million (end of 2024: EUR 1,670 million). At the reporting date, liabilities related to long-term investment loans and bonds totalled EUR 1,590 million (end of 2024: EUR 1,645 million). There were no short-term revolving credit liabilities. The Group's borrowings consisted of borrowings at the parent company level of EUR 865 million (end of 2024: EUR 925 million) and those at the subsidiary Enefit OÜ (formerly Enefit Green AS) of EUR 726 million (end of 2024: EUR 720 million).
At the end of 2025, the Group had liquid assets (cash and cash equivalents) of EUR 358 million. In addition, the Group had undrawn loans of EUR 520 million, of which EUR 370 million was attributable to the parent company and EUR 150 million to the subsidiary Enefit OÜ (formerly Enefit Green AS).
Key financing developments during the year included:
- Eesti Energia completed a EUR 50 million three-year retail bond issue at a fixed 5% annual interest rate, with the bonds listed on the Nasdaq Baltic in June 2025.
- In May 2025, Eesti Energia's sole shareholder, the Government of Estonia, approved a EUR 100 million share capital increase to support the Group's strategic investment plan.
- On July 22 2025, Fitch Ratings assigned Eesti Energia AS first-time long-term issuer credit rating BBB- with stable Outlook.
- Enefit Green was fully acquired by Eesti Energia in the first half of the third quarter of 2025. As a result, Enefit Green AS was delisted on 4 August 2025.
- In September 2025, Eesti Energia withdrew its rating with S&P.
- In November 2025, Eesti Energia's subsidiary Enefit Power won a public procurement contract to provide up to 1,036 MW of reserve generation capacity at a cost of up to EUR 59.5 million per year.
Current credit ratings as of 31 December 2025:
- Fitch: BBB-, Outlook: Stable
- Moody's: Baa3, Outlook: Negative
Outlook
Looking ahead, Eesti Energia's financial performance in 2026 will continue to be influenced by developments in energy markets, potential regulatory changes, macroeconomic conditions in Estonia and abroad, as well as geopolitical factors.
Following an intensive investment phase, the Group will prioritise the completion of ongoing development projects and the continued reliability of energy systems in 2026. While overall investment volumes are expected to moderate compared to previous years, improving customer experience will remain a key priority, together with strengthening the value proposition of Eesti Energia's services. This focus is underpinned by a renewed management structure implemented at the beginning of the year, which streamlines internal operations and supports the achievement of owner's and lenders' expectations.
Key financial information
Condensed Consolidated Interim Income Statement
| - | 1 January 2025 - 31 December 2025 | |
| in million EUR | 2025 | 2024 |
| Revenue | 1,646.9 | 1,785.2 |
| Other operating income | 192.4 | 107.5 |
| Change in inventories of finished goods and work-in-progress | 6.4 | 14.5 |
| Raw materials and consumables used | (1,110.3) | (1,180.8) |
| Payroll expenses | (190.6) | (197.1) |
| Depreciation, amortisation and impairment | (363.8) | (328.5) |
| Other operating expenses | (227.6) | (131.1) |
| OPERATING PROFIT/(LOSS) | (46.6) | 69.7 |
| Financial income | 8.4 | 15.4 |
| Financial expenses | (60.8) | (48.4) |
| Net financial income (expense) | (52.4) | (33.0) |
| - | ||
| Profit from associates under the equity method | 0.9 | 1.9 |
| PROFIT/(LOSS) BEFORE TAX | (98.1) | (38.6) |
| Corporate income tax expense | 15.5 | (25.7) |
| PROFIT/(LOSS) FOR THE PERIOD | (82.6) | 12.9 |
Condensed Consolidated Interim Statement of Financial Position
| in million EUR | 31.12.2025 | 31.12.2024 |
| Non-current assets | , | , |
| Property, plant and equipment | 3,585.9 | 3,563.8 |
| Right-of-use assets | 24.0 | 27.9 |
| Intangible assets | 95.0 | 93.5 |
| Prepayments for non-current assets | 35.3 | 61.1 |
| Deferred tax assets | 18.6 | 4.2 |
| Derivative financial instruments | 113.6 | 213.3 |
| Investments in associates | 65.9 | 74.9 |
| Other shares and holdings | 0.3 | 0.3 |
| Non-current receivables | 1.1 | 3.3 |
| Total non-current assets | 3,939.7 | 4,042.3 |
| , | ||
| Current assets | ||
| Inventories | 150.8 | 172.0 |
| Greenhouse gas allowances and certificates of origin | 37.2 | 74.5 |
| Trade and other receivables | 251.7 | 282.2 |
| Derivative financial instruments | 43.9 | 90.0 |
| Cash and cash equivalents | 358.2 | 468.9 |
| Total current assets | 841.8 | 1,087.6 |
| Total assets | 4,781.5 | 5,129.9 |
| in million EUR | 31.12.2025 | 31.12.2024 |
| EQUITY | - | - |
| Total equity and reserves attributable to equity holder of the Parent Company | - | - |
| Share capital | 846.6 | 746.6 |
| Share premium | 259.8 | 259.8 |
| Statutory reserve capital | 75.0 | 75.0 |
| Perpetual bond | 398.5 | 398.5 |
| Other reserves | 97.4 | 160.2 |
| Retained earnings | 313.1 | 565.5 |
| Total equity and reserves attributable to equity holder of the Parent Company | 1,990.4 | 2,205.6 |
| Non-controlling interest | 2.2 | 177.8 |
| Total equity | 1,992.6 | 2,383.4 |
| - | - | |
| LIABILITIES | - | - |
| Non-current liabilities | - | - |
| Borrowings | 1,404.7 | 1,498.7 |
| Deferred tax liabilities | 18.5 | 28.0 |
| Other payables | 6.1 | 8.0 |
| Derivate financial instruments | 4.9 | 4.4 |
| Contract liabilities and government grants | 534.7 | 467.9 |
| Provisions | 38.4 | 39.0 |
| Total non-current liabilities | 2,007.3 | 2,046.0 |
| Current liabilities | - | |
| Borrowings and lease liabilities | 226.6 | 197.0 |
| Payables for EUA transactions | 131.2 | 79.8 |
| Trade and other payables | 292.3 | 267.5 |
| Derivative financial instruments | 11.4 | 22.6 |
| Contract liabilities and government grants | 3.5 | 2.0 |
| Provisions | 116.6 | 131.6 |
| Total current liabilities | 781.6 | 700.5 |
| Total liabilities | 2,788.9 | 2,746.5 |
| Total liabilities and equity | 4,781.5 | 5,129.9 |
Eesti Energia will publish its unaudited 2025 results on 27 February 2026. The 2025 unaudited annual report and investor presentation are available on Eesti Energia's website. An investor call discussing the 2025 financial results will take place on 27 February 2026 at 11:00 London time, 12:00 Frankfurt time, and 13:00 Tallinn time. Please join the conference call using the following link.
Further Information:
Danel Freiberg
Head of Treasury and Financial Risk Management
Eesti Energia AS
Tel: +372 5594 3838
Email: danel.freiberg@enefit.com
