Ignitis Group Reports Strong 2025 Performance, Driven by Green Energy Investments

Ignitis Group, a state-owned energy holding company based in Lithuania, announced adjusted EBITDA of €546.1 million for 2025, a 3.4% increase compared to the previous year. This result surpassed the company’s earlier forecast of €510-540 million, fueled by robust performance in its Networks and Green Power segments. The company also reaffirmed its commitment to renewable energy and regional energy security.

Financial Highlights and Investment Strategy

In 2025, Ignitis Group invested €720.3 million, within the projected range of €700-800 million. A significant portion of these investments – 53.1% – was directed towards the Networks segment, although 39.7% supported the Green Power segment, primarily focusing on new solar and onshore wind projects. The total investment amount represents a decrease compared to 2024, as several projects commenced commercial operations.

S&P Global Ratings reaffirmed Ignitis Group’s credit rating at ‘BBB+’ with a stable outlook in September 2025, demonstrating confidence in the company’s financial health and strategic direction.

Expansion of Green Generation Capacity

Ignitis Group increased its installed green energy capacity by 0.7 GW in 2025, reaching a total of 2.1 GW with the successful launch of six new projects. Key developments include:

• Latvia: The opening of the largest solar energy portfolio in Latvia, comprising the Vārme (94 MW), Stelpes I (72.5 MW), and Stelpes II (72.5 MW) solar parks.
• Lithuania: The inauguration of the Kelme wind farm (313.7 MW), the largest onshore wind farm in the Baltics.
• Poland: The launch of the Silesia II wind farm (136.8 MW), one of the largest onshore wind farms in Poland.

These projects collectively added 450.5 MW of onshore wind and 263.0 MW of solar capacity to the Group’s generation portfolio.

Investments in Energy Storage and Network Modernization

Ignitis Group made final investment decisions on battery energy storage system (BESS) projects in Lithuania, including Ķelma (147.4 MW), Krone (99.2 MW), and Mažeiķi (45.1 MW).

The company continued to modernize and expand its distribution infrastructure, updating its 10-year investment plan (2024-2033) for distribution networks to €3.5 billion, a 40% increase from the previous plan of €2.5 billion (2022-2031). The industry regulator (NERC) approved a regulatory asset base (RAB) of €1.9 billion for 2026 (compared to €1.8 billion in 2025) and a weighted average cost of capital (WACC) of 5.74% (down from 5.79% in 2025), along with additional tariff components of €51.8 million (up from €37.5 million in 2025).

Ignitis Group completed the mass rollout of smart meters, installing 1.3 million devices.

Reserve Capacity and Customer Solutions

In the reserve capacity segment, Ignitis Group secured contracts in Polish capacity auctions, ensuring the availability of 381 MW and 484 MW of capacity in the first and fourth quarters of 2026, respectively, for approximately €8.2 million and €11.5 million. An additional auction win secured 148 MW of power in 2030 for approximately €14.7 million.

The Customers & Solutions segment expanded its electric vehicle charging network, adding 708 new charging points, bringing the total number of charging points in the Baltics to 1,799. Ignitis Group also entered into a 7-year power purchase agreement (PPA) with Lithuanian transmission system operator Litgrid for 160 GWh per year at a fixed price of €74.5/MWh, starting in January 2026.

Sustainability and Dividends

Sustainability remains a core focus for Ignitis Group, with 70.2% of its total production volume coming from green energy sources in 2025. The company’s carbon intensity (Scope 1 and 2 emissions) was 248 g CO₂ eq./kWh, and no fatal accidents were recorded. Ignitis Group was recognized by CDP for its leadership in corporate transparency and climate change, earning a place on the organization’s ‘A’ list.

Ignitis Group proposes a dividend payout of €1.366 per share for 2025, a 3.0% increase from the previous year, totaling €98.9 million. This represents a yield of 6.2-6.4% for global depositary receipt holders and shareholders, based on year-complete closing prices.

Outlook for 2026

Ignitis Group forecasts adjusted EBITDA of €550-600 million and investments of €590-690 million for 2026.