Economic report

As one of the leading integrated energy companies in Germany and Europe, we are actively shaping the development of a sustainable and future-ready energy infrastructure along the entire energy industry value chain. The affordability of energy, security of supply and climate change mitigation are key factors for the future viability of our Group and for safeguarding our long-term value creation. We pursue our strategic objectives primarily through the extensive expansion of renewable energies, the optimization of grid infrastructure, the implementation of our fuel-switch projects and the promotion of e-mobility. In the coming years, we plan to make further substantial investments in the expansion of energy infrastructure.

In 2025, the Group’s operating business developed overall as expected. We were able to slightly improve our adjusted EBITDA to €5.1 billion, which was in line with our forecast. All three segments met their adjusted forecast targets. The adjusted EBITDA for the Sustainable Generation Infrastructure segment fell as expected, while both the System Critical Infrastructure and Smart Infrastructure for Customers segments were able to increase their adjusted EBITDA year-on-year. As a result, the share of adjusted EBITDA attributable to low-risk earnings increased to 75.7%. However, Group net profit/loss attributable to the shareholders of EnBW AG declined significantly due to impairment losses on the companies Mona and Morgan, which are accounted for using the equity method. Consequently, earnings per share decreased in the 2025 financial year to €–0.70.

Nevertheless, the Group’s financial position remained solid. Solvency was ensured at all times thanks to sufficient cash and cash equivalents, the Group’s internal financing capability and available external financing sources. Net debt fell compared to the figure posted at the end of the previous year by €1.1 billion, which was mainly attributable to the improved FFO and the capital increase carried out during the year. This was offset by high net investment, which could not be fully covered by retained cash flow. Nevertheless, retained cash flow was significantly higher year-on-year due to lower cash outflows for income taxes. Consequently, the debt repayment potential in 2025 was also substantially higher than in the previous year and, at 25.2%, exceeded the forecast range of 15.0% to 18.0%.

Gross investment increased again by around 22% year-on-year to €7.6 billion. The majority of these investments were attributable to growth projects. At 89.6%, the share of taxonomy-aligned expanded capex also met expectations. The gross investment is reflected in a substantial increase in non- current assets. The capital increase strengthens the equity base of the EnBW Group.

In the customers and society goal dimension, we were able to maintain our Reputation Index at the previous year’s good level. The Customer Satisfaction Index for EnBW once again remained at a good level and was only just below our forecasted range. The satisfaction of Yello customers increased in 2025 and remained at an outstanding level at the upper end of the forecasted range despite challenging market conditions. SAIDI Electricity the indicator for the reliability of electricity distribution grids, was above our forecast in 2025 due to an exceptional outage event in the Czech transmission grid.

In the environment goal dimension, the installed output of renewable energies (RE) increased to 7.4 GW in 2025. This was mainly attributable to the expansion in photovoltaic power plants and onshore wind farms and the partial commissioning of the EnBW He Dreiht offshore wind farm. Although installed output was slightly below the adjusted forecast, the company recorded the highest expansion in renewable energies in its history in 2025. Following the deconsolidation of the Lippendorf lignite power plant as of 31 December 2025, the share of the generation capacity attributable to RE increased to 65.6% and was above our adjusted forecast.

The CO₂ intensity of our own electricity generation rose year-on-year as a result of a fall in generation from renewable energy sources and the significantly higher deployment of our coal power plants, and was slightly above our forecasted range.

In the employees goal dimension, the People Engagement Index (PEI) stood at 83 points as in the previous year, remaining at a very high level in comparison with other companies. The PEI enables us not only to measure employee satisfaction but also to draw conclusions about employees’ motivation and engagement. In the area of occupational safety, the LTIF performance indicators fell significantly in the reporting period. This positive development was mainly attributable to very good results within generation and at companies in the SENEC Group.

Overall, thanks to our robust integrated setup, we were largely able to achieve the forecast values for our top performance indicators in the 2025 financial year. The Board of Management therefore continues to assess the results of operations, financial position and net assets of the EnBW Group as solid.