Fortum Oyj

Fortum reported Q2 comparable operating profit of EUR 106 million, down EUR 9 million year over 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 rose to EUR 324 million, up EUR 121 million from the comparable quarter. For the first half, the group said all KPIs improved, and leverage was 1.4x net debt to comparable EBITDA; net debt was EUR 1.8 billion at quarter-end. Guidance was maintained for 2026 optimization premium at EUR 8-EUR 10/MWh, nuclear volume at 23-23.5 TWh, CapEx at EUR 550 million, and comparable effective tax rate at 18%-20%. Management also guided 2027 and beyond optimization premium at EUR 6-EUR 8/MWh, with 2027 hedge price at EUR 41 and hedge ratio at 65%.

Markus Rauramo framed the quarter as one where Q2 is structurally a smaller earnings period, with results affected by lower achieved power price, lower ancillary-services income, fewer hydro volumes, and more planned nuclear outage days. Strategically, he emphasized Fortum’s focus on electrification, disciplined growth in Consumer Solutions, and the Elmera acquisition as a way to create a stronger Nordic retail platform with scale, digital capabilities, and synergies. He also highlighted the coal exit in Finland and said Fortum remains interested in clean dispatchable assets such as nuclear and hydro, but only within its financial framework.

Tiina Tuomela said Q2 comparable operating profit was EUR 106 million, comparable net profit EUR 74 million, and comparable EPS EUR 0.08. She highlighted operating cash flow of EUR 324 million, with the improvement driven by lower working capital from lower Consumer Solutions receivables, and said net debt ended at EUR 1.8 billion with leverage at 1.4x. She also noted gross debt of EUR 3.8 billion, liquidity reserves of EUR 6.5 billion, and a debt portfolio cost of 3.1% versus 2.1% interest income on liquid funds. On guidance, she said nuclear output is expected to be 23-23.5 TWh in 2026, CapEx remains EUR 550 million for 2026, and the tax rate outlook stays at 18%-20%.

Analysts focused on how much of the recent Nordic power-price increase Fortum can capture, especially for Q4 and early 2027, and management said it does not disclose quarterly hedge ratios but reiterated 80% hedged for the rest of 2026 and 65% for 2027 overall. On Uniper, Markus said Fortum remains interested in Nordic nuclear and hydro assets even if the ROFO expires, but would stay within its 2.5x leverage framework and has no plans for an equity raise. Questions on Elmera synergies and higher fixed costs led management to say synergies are meaningful but not yet quantified, while Q2 fixed costs increased by EUR 11 million and Fortum still sees itself on track toward its roughly EUR 870 million annual cost level.