Vattenfall’s operating profit fell sharply in 2025 as very low electricity prices in northern Sweden offset stronger hedging performance and higher nuclear generation, the utility said in its year-end report.
The company posted EBIT of €2.6bn for the year, down from €3.7bn in 2024. Vattenfall said the decline was driven in part by depressed spot prices in the north of the Nordic region, where a strong hydrological balance pushed power prices to low levels.
Chief executive Anna Borg said electricity prices in northern Sweden “were at low levels due to a strong hydrological balance”, negatively affecting results despite higher average prices in southern Sweden, Denmark and continental Europe.
Underlying EBIT, however, improved to €2.9bn from €1.6bn, supported by stronger hedging in continental markets and increased contributions from nuclear generation.
Total electricity generation rose to 102.1TWh from 99.6TWh, driven by higher hydro and nuclear output, while wind production remained broadly stable at 17.3TWh. Vattenfall reported turbine availability of 93.5% offshore and 95.8% onshore.
“The underlying operating profit for the full year 2025 increased, primarily driven by an improved development of price hedging in Vattenfall’s continental markets and a higher contribution from nuclear operations,” Borg said, adding that lower hydro output in the Nordics and weaker sales operations partially offset these gains.
Borg also highlighted the company’s continued pivot toward clean energy, pointing to its 2026–2030 investment programme, with 56% allocated to growth projects including the Nordlicht I and II offshore wind farms in Germany and the Zeevonk project in the Netherlands.
“In 2025, we invested more than ever in strengthening and extending the Swedish electricity grid,” she said, adding that Vattenfall will continue its “journey towards fossil freedom” through profitable investments and closer collaboration with customers and partners.
