Hidroelectrica finished 2025 with a net profit of around 664 million euros, marking a 20 % decrease compared to the previous year. Despite the decline, the result exceeded the company’s revised budget projections by roughly 10 %.
The weaker performance was primarily due to unfavorable hydrological conditions, which reduced hydro generation and limited electricity volumes available for sale. Net energy production and sales fell by approximately 15 %, totaling 13,864 GWh. The year began with a severe drought, with average Danube flows in Q1 at just 4,257 cubic meters per second, about 40 % lower than the same period in 2024. Production improved later in the year, especially in Q3 and Q4, supported by better water conditions and higher electricity purchases.
On the revenue side, the wholesale segment benefited from a 16 % increase in average selling prices compared to 2024. The company’s shift toward forward market trading after the removal of the regulated MACEE mechanism in early 2025 helped secure higher prices, partially offsetting the lower output. Still, total wholesale revenues declined 22 % year-on-year, an improvement over the 53 % drop recorded in Q1.
The electricity supply business showed strong growth, with revenues rising 48 % to about 690 million euros, driven by a 30 % increase in volumes sold to end customers and a 14 % rise in average supply prices.
Other income streams were mixed. Balancing market revenues fell 69 % to 54 million euros, following a 64 % decline in traded volumes. National balancing volumes dropped sharply from 1,493 GWh in 2024 to 797 GWh in 2025. Additional revenues from customer contracts decreased 37 % to 29 million euros.
On the cost side, expenses for processed water declined 14 % to about 90 million euros, reflecting lower production. Personnel expenses increased 15 % to 205 million euros due to wage rises and a 3 % growth in headcount, partly linked to the earlier acquisition of UCM Resita. Transmission and distribution costs rose 33 % to 329 million euros because of higher delivered volumes and regulated price adjustments. Electricity procurement costs surged more than threefold to over 180 million euros to support supply operations amid weaker hydro output.
Capital expenditure accelerated 32 % to 157 million euros. Investments in development projects more than doubled to 42 million euros, while modernization spending increased 59 % to around 86 million euros.
Despite lower hydro production, Hidroelectrica protected its margins through strategic pricing and portfolio optimization, while continuing to scale up investments in modernization and diversification.
