Elia Group SA/NV

Elia Group reported first-half 2026 adjusted profit for the period of almost EUR 411 million, up 26%. Net profit attributable to Elia Group shareholders was EUR 348.7 million, and profit for the period was almost EUR 420 million, including a EUR 9 million positive one-off tax item related to fiscal year 2023. Belgium adjusted net profit rose 25.8% to EUR 163 million, while Germany adjusted profit increased by almost 21% to EUR 250.8 million. Net debt excluding EEG increased by EUR 0.5 billion to EUR 14.6 billion, average cost of debt was 3%, and H1 capex was around EUR 1.9 billion. For 2026, management reaffirmed net profit guidance of EUR 690 million to EUR 740 million, expects Belgium adjusted net profit toward the upper end of EUR 290 million to EUR 320 million, Germany adjusted net profit of EUR 585 million to EUR 625 million, and International & holding around breakeven; Germany full-year capex is now expected at around EUR 4.8 billion and Belgium at around EUR 1.7 billion.

Bernard Gustin framed the half year as a period of solid execution amid a larger European shift toward electrification, energy security and grid buildout. He stressed that the grid is a precondition for the energy transition, not a consequence of it, and said Elia is managing the practical execution challenge around permitting, supply chains, capital and regulation. He also emphasized disciplined expansion through selective partnerships such as Tarchon rather than growth for growth’s sake.

Marco Nix focused on funding discipline and balance-sheet management, pointing to the EUR 900 million hybrid bond, more than EUR 2 billion of revolving credit facilities, and early repayment of the EUR 300 million term loan due in 2027. He said net debt excluding EEG rose only EUR 0.5 billion to EUR 14.6 billion despite EUR 1.9 billion of H1 capex, with debt fully fixed-rate and an average cost of debt of 3%. He also explained that the lower 2026 German capex outlook mainly reflects project phasing, optimized payment schedules and procurement efficiencies, while the underlying investment program remains unchanged.

Analysts pressed on why the lower Germany capex did not lift group guidance, and management said the updated range already reflects the hybrid costs and that the impact of the capex reduction on earnings is modest. On Germany regulation, management said talks with BNetzA are ongoing and that incentives and the WACC/cost of debt design remain key open items, with an official consultation likely in September and a framework expected by year-end. They also clarified Ostwind 3 commissioning should happen by year-end, and that the Tarchon interconnector is a regulated asset with a 25% look-through stake for WindGrid, about GBP 200 million of equity over the construction period, and total capex below GBP 5 billion.