VERBUND AG

The profiled entity is the listed parent, VERBUND AG, Vienna, Austria. It trades on the Wiener Börse (Vienna Stock Exchange, Official Market, ATX constituent) under ticker VER.

• The primary ordinary share ISIN is AT0000746409 (WKN 877738), as confirmed by every EQS corporate news footer in 2026.

• A US-prefixed ISIN is consistent with VERBUND's unsponsored/Level-I American Depositary Receipt programme, which trades OTC as OEZVY. Third-party ownership pages reference "OTCPK:OEZV.Y".

Company-reported group headcount was n/d in the documents retrieved. Third-party data, shown with source:

A further aggregator (boerse-express) lists group employee counts of 3,184, 3,712 and 4,095 for consecutive (unlabelled) years, most likely FY2021–FY2023. This conflicts with the Revelio series, so both are shown and neither should be treated as authoritative.

VERBUND is Austria's largest electricity company and one of Europe's leading hydropower generators. In an average water year, more than 90% of its output comes from run-of-river and (pumped-)storage plants in Austria and Bavaria. It also owns Austria's electricity transmission system operator, Austrian Power Grid (100%), and controls the national gas-transmission operator, Gas Connect Austria (51%). This makes it a hybrid of a merchant clean generator and a regulated network utility.

Earnings are highly geared to Alpine hydrology and to central-European wholesale power prices. That gearing produced record profits in 2022–2023 and a sharp normalisation in 2024–2026, compounded by an Austrian windfall levy now extended to 2030.

Its Strategy 2030 ("Mission V") rests on three pillars:

• reinforcing the integrated home market of Austria and Germany;

• building wind, solar and battery capacity across Spain, Italy, Romania, Germany and Albania, targeting 25% of generation by 2030;

• positioning as a European green-hydrogen player via the SoutH2 Corridor.

The Austrian state holds 51%.

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What the company does

VERBUND generates, trades, transmits and sells electricity, and transports natural gas. The company's own corporate purpose, as stated in its imprint, is the generation, transportation, trading and sale of electrical energy.

The FY2025 results presentation frames the group as aiming to lead the transition to a clean energy system. It names three strategic approaches as a "leading European green energy player":

1. strengthening the integrated supplier role in the home market (Austria and Germany);

2. empowering the expansion of renewables in Europe;

3. claiming a leading role as a European hydrogen player.

Business model and revenue model

The economic model has three distinct engines.

1. Merchant and quasi-merchant generation (Hydro, New renewables, thermal). Output is hedged forward, typically 1–3 years ahead, and sold at achieved contract prices.

• Achieved hydro contract prices: EUR 167.1/MWh in FY2023, EUR 118.0/MWh in FY2024, EUR 116.3/MWh in FY2025.

• For 2026, 18.4 TWh (86% of planned hydro volume) was hedged at EUR 87.0/MWh as of 30 Jun 2026.

• The fall in achieved prices is the single most important driver of the 2024–2026 earnings decline. (Source: H1/2026 presentation, p.3.)

2. Flexibility monetisation. Pumped storage, reservoir plants, the Mellach CCGT and batteries earn returns from several sources: control (balancing) energy, congestion management, grid-system services, intraday optimisation, capacity and cold-reserve contracts, and pumping/turbining spreads.

• Flexibility contribution history: EUR 181m (2021), 478m (2022), 348m (2023), 275m (2024) and 274m (2025).

• Management guides to approx. EUR 250m for 2026; H1/2026 was EUR 136.4m. (Source: FY2025 and H1/2026 presentations.)

3. Regulated networks (Grid segment). Austrian Power Grid (APG, electricity TSO) and Gas Connect Austria (GCA, gas TSO/DSO) earn allowed returns on a regulated asset base (RAB).

• APG RAB: EUR 3,229m (2025), EUR 3,662m (2026).

• GCA RAB: EUR 656m (2025), EUR 605m (2026).

• IFRS earnings are volatile because there is no regulatory account under IFRS. Local GAAP earnings are stabilised via a regulatory account (APG 2026e approx. EUR 600m).

• Grid segment EBITDA was EUR 440m in 2025, about 16% of the sum of segments. (Source: FY2025 presentation, p.9.)

Revenue mix by type (reported). VERBUND does not use a product/service/subscription/licensing taxonomy. It reports revenue by type:

(Source: FY2025 presentation, income statement.)

Translated into the requested taxonomy for FY2025 (calc.):

Product (commodity electricity sales): approx. 82% of revenue.

Regulated service (grid/transport fees): approx. 14%.

Other: approx. 4%, covering energy services, heat, PV/e-mobility solutions and consulting.

Subscription/licensing: none material.

Value-chain position

VERBUND is vertically integrated across:

• generation (hydro, wind, PV, gas-fired CCGT);

• wholesale trading and asset optimisation;

• transmission (electricity: APG; gas: GCA, plus an interest in the Trans Austria Gasleitung (TAG) system via the group);

• retail and B2B sales.

It is not a distribution network operator in Austria. Distribution belongs to regional utilities such as EVN, Wiener Netze, Netz OÖ and KNG-Kärnten Netz, which is one reason VERBUND is described by third parties as primarily a large-scale producer and wholesaler.

Customer types and end-markets

Wholesale counterparties: power exchanges (EEX/EPEX), traders, other utilities.

Regional utilities and municipal utilities: in Austria and abroad.

Industrial customers: energy-intensive industry, PPAs, decarbonisation and hydrogen partnerships. Historic core clients include Austrian Federal Railways (ÖBB) for traction power.

Households and small businesses (B2C): about 450,000 electricity and 80,000 gas customers at end-2021 (industriemagazin, citing VERBUND). An updated figure was n/d.

System operators: APG and German TSOs as buyers of balancing, redispatch and grid-reserve services. Example: the Mellach district-heating plant was contracted for grid reserve from 1 Oct 2025 to 30 Sep 2026.

Independent characterisation

VERBUND is best understood as a long-duration, low-cost, price-taking hydro asset base with a regulated-network ballast. Three features are hard for peers to replicate:

• the Austrian/Bavarian hydro fleet;

• a near-zero-carbon generation profile;

• an A-range credit profile.

However, its earnings power is cyclical rather than structural, because the drivers are hydrology and forward prices. Political capture is also a persistent overlay: windfall levy, 51% state ownership, and customer-pricing litigation.

The 2026 guidance midpoint (EBITDA approx. EUR 2.25bn) is about 50% below the 2023 peak of EUR 4.49bn. That gap shows how much of the 2022–2023 earnings were price-driven rather than capacity-driven.

Strategy 2030 — "Mission V" (FY2025 Integrated Annual Report / FY2025 presentation pp.22–24)

The strategic themes, paraphrased from the company's own framing:

1. Strengthen the integrated supplier role in the home market (AT/DE).

• Hydropower as the backbone: preservation, modernisation, expansion and ecological upgrading of run-of-river and (pumped-)storage plants.

• Green thermal power as an enabler, via the hydrogen pathway at Mellach.

• B2B sales and trading as effective asset marketing; PV, e-mobility and batteries as growth areas.

• B2C sales of VERBUND electricity, PV and e-mobility solutions.

• Electricity-grid expansion under the Network Development Plan (NDP); gas network security of supply under the CNDP, plus H2 conversion.

2. Empower the expansion of renewables in Europe.

• Wind and PV growth for technological and regional diversification in Austria, Germany, Spain, Italy, Romania and Albania.

• Growth via in-house development, structured M&A, and optimisation of the existing portfolio.

• Flexibility via storage, including batteries.

• Target: profitable expansion so that 25% of total generation comes from PV and onshore wind by 2030 (previously 20–25%).

3. Claim a leading role as a European hydrogen player.

• Local H2 production and market development.

• Large-scale import at competitive cost through corridors (SoutH2).

Capital plan

(Source: Integrated Annual Report 2025 key-figures page; FY2025 presentation p.14.) The previous plan for 2025–2027 was EUR 5.9bn (Q1–3/2025 release), so the new plan is approximately 15% larger.

Strategic initiatives in the last 24 months (Oct 2024 – Oct 2026)

Medium-term financial targets and guidance

FY2026 guidance (30 Jul 2026):

• EBITDA approx. EUR 2,100–2,400m.

• Reported Group result approx. EUR 1,000–1,150m.

• Payout 45–55% of the adjusted Group result.

Dividend policy: a 45–55% payout of the adjusted Group result, with special dividends at Board discretion (2022, 2023, 2025).

Leverage: there is no explicit numerical target in retrieved sources. Management communicates commitment to a "strong A-range" rating (historical communication).

Pricing models are generally not disclosed. Retail tariff names were not catalogued from primary sources and are therefore omitted rather than guessed.

Hydro segment

New renewables segment

Capacity as of 30 Jun 2026 (H1/2026 presentation; country attribution per slide order):

Products are merchant and PPA wind and PV electricity, plus co-location and hybridisation (PV, wind and batteries) in Spain.

Flagship assets:

• Casimcea, Romania (226 MW);

• Spanish platform from Q-Energy (4.58 GW development pipeline);

• Buseco wind farm, Spain (2026 press deck);

• Lazio PV, Italy (approx. 110 MWp);

• Caraș-Severin wind project, Romania (272 MW, approx. 569 GWh/yr, construction from 2026).

Sales segment

Grid segment

All other segments / new business