Lithuanian energy company AB Ignitis Grupė has published its Integrated Annual Report for 2025, revealing strong financial performance that exceeded guidance expectations. The company reported full-year Adjusted EBITDA of EUR 546.1 million, representing a 3.4% year-over-year increase and surpassing the upper end of its guidance range of EUR 510-540 million, according to the report.
The growth was primarily driven by the stronger performance of Ignitis Grupė’s two largest business segments: Green Capacities and Networks. The company’s investments for the year totaled EUR 720.3 million, declining 11.3% year-over-year but remaining within the projected range of EUR 700-800 million.
Investment Focus on Green Capacities and Networks
According to the company, 53.1% of total investments were allocated to the Networks segment, while 39.7% went toward Green Capacities. The investments primarily supported new solar projects, onshore wind developments, and the Kruonis Pumped Storage Hydropower Plant expansion. The company noted that total investments decreased compared to 2024 as several major projects reached commercial operation date.
The Green Capacities segment demonstrated significant expansion, with installed capacity increasing to 2.1 GW from 1.4 GW. Key milestones included reaching commercial operation at multiple facilities: Kelmė Wind Farm in Lithuania (313.7 MW), Silesia Wind Farm II in Poland (136.8 MW), and several solar farms in Latvia, including Varme (94 MW) and two Stelpe facilities (72.5 MW each).
Networks Segment Achieves Major Milestone
The Networks segment completed a significant infrastructure upgrade, finishing the mass smart meter rollout with 1.3 million devices installed. Additionally, the company aligned a 10-year investment plan worth EUR 3.5 billion with Lithuania’s National Energy Regulatory Council (NERC) on January 23, 2025, representing a 40% increase in planned investments.
Meanwhile, the company’s Net Debt increased to EUR 1,912.0 million as of December 31, 2025, up 18.6% from EUR 1,612.3 million the previous year. This increase reflects continued significant investments in Networks and Green Capacities. Despite the higher debt levels and a decrease in Funds From Operations (FFO) to Net Debt ratio to 21.0% from 29.7%, S&P Global Ratings reaffirmed Ignitis Grupė’s ‘BBB+’ credit rating with a stable outlook in September 2025.
Sustainability Performance and Challenges
In contrast to the financial achievements, the company’s sustainability metrics showed mixed results. The Green Share of Generation fell to 70.2%, down 11.3 percentage points year-over-year. The company attributed this decline to proportionally higher electricity generation at the Elektrėnai Complex to support new reserve capacity services.
Total greenhouse gas emissions increased to 4.49 million tonnes of CO2 equivalent, up 10.1% year-over-year. However, Ignitis Grupė received recognition for climate leadership by securing a place on the CDP Climate A List, which includes only the top 4% of companies scored by the global environmental nonprofit.
Shareholder Returns and Future Outlook
According to the company’s dividend policy, Ignitis Grupė proposed a total dividend of EUR 1.366 per share for 2025, representing a 3.0% increase year-over-year. This amounts to EUR 98.9 million and represents a 6.2-6.4% yield based on year-end closing prices. The proposal includes a EUR 0.683 dividend for the second half of 2025, which requires approval at the Annual General Meeting of Shareholders scheduled for March 25, 2026.
For 2026, the company expects Adjusted EBITDA in the range of EUR 550-600 million and investments between EUR 590-690 million. Additionally, the company’s Reserve Capacities segment won Polish capacity mechanism auctions for ensuring 381 MW capacity availability in Q1 2026, 484 MW in Q4 2026, and 148 MW in 2030.
Shareholders will vote on the proposed second-half dividend at the Annual General Meeting on March 25, 2026, with an earnings call for investors and analysts scheduled for February 25, 2026.
