Fortum Oyj

Fortum reported Q2 2026 comparable operating profit of EUR 106 million, down EUR 9 million year on year, and comparable EPS of EUR 0.08 versus EUR 0.09 last year. Comparable net profit was EUR 74 million, and operating cash flow was EUR 324 million, up EUR 121 million year on year, helped by lower working capital. For the first half of 2026, comparable operating profit increased to EUR 627 million, with Generation contributing EUR 613 million; leverage was 1.4x, net debt was EUR 1.8 billion, gross debt excluding leases was EUR 3.8 billion, and liquidity was EUR 6.5 billion. Guidance for 2026 remained intact on optimization premium at EUR 8 to EUR 10/MWh, nuclear volume at 23 to 23.5 TWh, committed CapEx at EUR 550 million, 2026-2030 committed CapEx at EUR 2 billion, and a comparable effective income tax rate of 18% to 20%.

Markus Rauramo said the quarter was shaped by lower achieved power prices, lower ancillary-services income, planned nuclear outages, and lower spring floods that limited hydro capture. His strategic focus was on growth in Consumer Solutions, highlighted by the Elmera offer, which he framed as a way to build scale, improve digital and operational capabilities, and create a stronger Nordic retail platform. He also emphasized Fortum’s coal exit and clean-transition development around Meri-Pori, while stressing that the company remains strongly positioned financially.

Tiina Tuomela focused on the mechanics of the quarter: comparable operating profit fell to EUR 106 million, comparable net profit to EUR 74 million, and comparable EPS to EUR 0.08, while cash flow improved to EUR 324 million due to lower working capital tied to lower power prices. She said Q2 fixed costs increased by EUR 11 million and that Fortum’s cumulative fixed cost level at the end of Q2 was EUR 428 million, versus a targeted overall level of about EUR 870 million per year. She also cited EUR 1.8 billion of net debt, EUR 3.8 billion of gross debt, EUR 6.5 billion of liquidity, a 3.1% funding cost on the loan portfolio, and 2.1% interest income on liquid funds.

Analysts focused on how much Fortum can capture from the sharp rise in winter power prices, but management said it does not disclose quarterly hedge levels; instead it pointed to 80% hedged for the rest of 2026 and 65% for 2027, leaving room to optimize. The biggest M&A discussion was Uniper: Fortum said it remains interested in Nordic nuclear and hydropower assets, but would stay within its stated 2.5x leverage ceiling and has no plans for an equity raise. Questions on Elmera synergies and higher fixed costs drew responses that the deal should bring meaningful synergies, though not yet quantified, while Q2 fixed costs rose by EUR 11 million but the company said it remains on track toward its cost targets.