Dear Reader,
The 2025 financial year was marked by many challenges: heightened geopolitical dynamics, uncertain energy policy conditions, rising costs for components and services, and unfavorable weather conditions for power generation.
Nevertheless, we were able to close the financial year successfully. With an adjusted EBITDA of €5.1 billion, we achieved the result we had set ourselves. This is a result that once again demonstrates the efficacy of our integrated approach of positioning the company along the entire energy industry value chain – our business activities range from generation and trading through to grids and sales. This diversified portfolio makes us more robust and ensures solid operating results.
Thanks to our strong performance, we were able to invest record amounts in the restructuring of the energy system. We invested almost €8 billion – more than ever before in our history – in 2025 alone, with a consistent focus on adding value and achieving corporate success. At the same time, 2025 also showed that setbacks cannot always be avoided. One such setback was having to withdraw from our offshore projects in the Irish Sea as they were no longer profitable under the prevailing framework conditions. We will maintain this focus on the cost effectiveness of our target investments in the future. And we will continue to review our portfolio with respect to profitability and initiate divestitures or partnerships where appropriate. This currently applies to our restructured storage subsidiary SENEC and also to our very successful contracting business, which, however, is not a strategic focus for EnBW.
An important milestone in our ambitious investment program was the capital increase of €3.1 billion, which we successfully carried out in 2025. It reflects the enormous trust that our shareholders have in the strategy we have clearly set out for the future and in the long-term growth potential of our company. At the same time, it will serve as both a source of motivation and as an obligation for us to make the company even more efficient internally. This includes streamlining our processes even further, reducing costs and pursuing our growth strategy with the existing workforce – without looking to further increase our head count.
By 2030, we plan to invest up to €50 billion across all of our segments, each of which I will now focus on individually. Almost 60% of our investment over the past year was in system critical infrastructure – specifically to expand the grids at all voltage levels. In terms of high-voltage infrastructure, this mainly concerned our two HVDC projects: SuedLink is now under construction in all six participating federal states. For ULTRANET, we have built 41.6 km of the total 42 km overhead line route, and the converter station is already in operation; the line is scheduled to be commissioned by the end of this year. In the distribution grids, we are investing in digitalization with, for example, an automated connection check that means customers can find out within just one day whether their photovoltaic systems can be connected up to the distribution grid. Our strong roots in Baden-Württemberg is reflected not least in the trust placed in us by local authorities: 245 of them are partners in our “EnBW connects” participation model and our subsidiary Netze BW alone currently holds 781 concessions in the state – and has not lost a single one in the course of the last 321 concession tendering processes.
In the Sustainable Generation Infrastructure segment, we were able to celebrate a new record with respect to renewable energies: EnBW installed more wind turbines – both onshore and offshore – and solar panels than ever before. Renewable energies now account for 65.6% of our generation capacity. With the full commissioning of the EnBW He Dreiht offshore wind farm, expected in summer 2026, we will significantly increase our generation capacity once again – and do so successfully from a commercial perspective, as we have already sold a large share of the new capacity through long-term bilateral power purchase agreements (PPAs). As an integrated company, our main focus with respect to onshore projects is system relevance. For example, we routinely equip our solar parks with battery storage systems or utilize the existing grid connections of former power plant sites for battery storage projects, such as in Philippsburg.
Affordability is just as essential as security of supply and climate change mitigation if we are to successfully complete the transformation of Germany’s energy supply.At the same time, we are investing in new hydrogen-ready gas power plants capable of providing so-called dispatchable capacity – generation capacity that is available at all times, even when renewable energies are unable to supply electricity. In Stuttgart-Münster, we placed our first power plant block of this type into operation last year, while two further power plants are currently under construction and the approval process for our RDK 9 project in Karlsruhe is already underway. We are just as active in the procurement of green hydrogen. Here, we are focusing above all on non-European markets, so that we can secure the most favorable pricing conditions for consumption in Germany.
Last but not least, in sales we were able to announce the largest reductions in energy costs in recent years and ease the burden on millions of customers from the beginning of 2026. This is so important at a time when the cost of living is rising across the board. An average household will now pay up to 12% less for their electricity than in 2025. Our cloud-based home energy management system EnBW Mavi is also helping customers manage their energy consumption efficiently, while our flexible tariffs enable them to benefit from fluctuating prices on electricity markets. An increasing number of customers are utilizing our expanded services for e-mobility: There are currently more than 3 million users of our EnBW mobility+ app and we have now installed over 8,000 fast-charging points.
Affordability is just as essential as security of supply and climate change mitigation if we are to successfully complete the transformation of Germany’s energy supply. That is why we commissioned a system cost study in 2025, to highlight potential savings across the entire energy system: Around €300 billion in system costs could be saved through improvements in efficiency in the electricity sector and up to €700 billion if the system was then scaled dynamically according to demand.
In the new financial year, we will continue to follow the course we have embarked upon and will keep investing with a focus on returns on profitability and on areas that will further strengthen our company as a business. And we will remain active in the debate surrounding energy policy – whether it’s about the previously mentioned expansion of dispatchable capacity, economically viable grid yields, the reform of the Renewable Energy Sources Act (EEG) or the future funding framework for expanding offshore energy. This is because no other major energy company in Germany can offer the comprehensive and objective level of expertise we have at EnBW thanks to our integrated approach. We have our sights firmly set on our goal – delivering affordable, reliable and climate-friendly energy – and we also want to benefit as a company along the way.
Best regards
Dr. Georg Stamatelopoulos
Chief Executive Officer