Greencoat UK Wind chair Lucinda Riches said 2025 proved difficult for the company as weaker wind conditions and softer near-term power prices weighed on performance.
Despite the headwinds, net cash generation held firm at £291 million, covering the annual dividend by 1.3 times, Riches said.
She added that the company made “material progress” on capital allocation during the year, highlighting a 12th consecutive year of dividend increases in line with or ahead of inflation, £181 million of divestments and £109 million of share buybacks.
Greencoat also reduced debt principal by £168 million and added £5 million to net asset value through asset optimisation initiatives.
“The Board and the Investment Manager recognise that this has been a further challenging year for investors and have been working tirelessly to protect and build shareholder value,” Riches said.
“Net cash generation remained robust at £291 million.”
She added: “Material progress has been made on capital allocation in 2025, having delivered a 12th consecutive year of dividend increases with or ahead of inflation, significant divestments at prevailing NAVs, a sector-leading share buyback programme and a material reduction in debt principal.”
Looking ahead, Riches said the company plans further measures in 2026, including additional disposals, lower gearing, continued buybacks and a disciplined return to reinvestment.
She said the company’s structurally high dividend cover model is expected to generate around £1 billion of excess cashflow over the next five years, supported by further strategic disposals and providing “significant optionality to enhance value for shareholders.”
