Q2 2026 AB Ignitis Grupe Earnings Call

August 12, 2026

Speaker #1: Yesterday. During today's call, Ignitis group CEO and CFO will present their group's strategic and financial highlights for the period. This will be followed by a question-and-answer session.

Speaker #1: Before we begin, I would like to remind you that today's presentation contains forward-looking statements that are subject to risks and uncertainties. These statements are based on management current beliefs, expectations, and assumptions, and actual results may differ materially from those expressed or implied.

Speaker #1: With that, I will now hand over to Darius to walk you through the key strategic highlights.

Speaker #2: Good afternoon all, and thank you for joining our results call. Over the first 6 months of 2026, we sustained strategic progress and consistent financial performance with key highlights as follows: first, our adjusted EBITDA reached $307 million, representing a 2% year-over-year increase; second, we continued our disciplined green capacity portfolio delivery with $2.1 gigawatts of installed capacity and $0.6 gigawatts of assets under construction; additionally, after reporting a period, we added further $0.1 gigawatts to our portfolio under construction, as we made final investment decisions for two mere battery energy storage systems of $127 megawatts and $215 megawatt-hours in Latvia.

Speaker #2: Third, we preserved a stable balance sheet with net debt to adjusted EBITDA at $3.5 times and reaffirmed BBB+ credit rating from S&P after reporting period.

Darius Maikštėnas: This portfolio delivery with 2.1 gigawatts of installed capacity and 0.6 gigawatts of assets under construction. Additionally, after reporting period, we added further 0.1 gigawatts to our portfolio under construction as we made final investment decision for two new battery energy storage systems of 107 megawatts and 215 megawatt hours in Latvia. Third, we preserved a stable balance sheet with net debt to adjusted EBITDA at 3.5x and reaffirmed BBB+ credit rating from S&P after reporting period. Last, in line with our dividend policy for the H1 2026, we intend to distribute a dividend of EUR 7.4 cents per share, representing 3.1% increase year-over-year. Now let me take to go through the strategic progress over the reporting period. First, the progress of our green capacities projects under construction.

Darius Maikstenas: This portfolio delivery with 2.1 GW of installed capacity and 0.6 GW of assets under construction. Additionally, after reporting period, we added further 0.1 GW to our portfolio under construction as we made final investment decision for two new battery energy storage systems of 107 MW and 215 MW hours in Latvia. Third, we preserved a stable balance sheet with net debt to adjusted EBITDA at 3.5x and reaffirmed BBB+ credit rating from S&P after reporting period. Last, in line with our dividend policy for the H1 2026, we intend to distribute a dividend of EUR 7.4 cents per share, representing 3.1% increase year-over-year. Now let me take to go through the strategic progress over the reporting period. First, the progress of our green capacities projects under construction.

Speaker #2: Last in line, with our dividend policy, for the first half of 2026 we intend to distribute a dividend of $7.4 per share representing $3.1% increase year over year.

Speaker #2: Now let me take to go through the strategic progress over the year reporting period. First, the progress of our green capacities projects under construction.

Speaker #1: As we made final investment decision for TUME Battery Energy Storage System of 107 megawatts and 215 megawatt-hours in Latvia. Third, we preserved a stable balance sheet with net debt to adjusted EBITDA at 3.5 BBB+ credit rating from S&P after reporting period.

Speaker #2: Currently, we have 6 projects under construction with total capacity of $0.7 gigawatts, and investments of $422 million. The portfolio includes 1 solar farm, 1 hydro expansion project, and 4 BES projects.

Speaker #1: Last in line with our dividend policy, for the first half of 2026, we intend to distribute a dividend of 7.4 euro cents per share, representing a 3.1% increase year over year.

Speaker #2: To start with $174 megawatt, 2 mere solar farm in Latvia, we have already invested $87 million out of total $106 million. The project is progressing on track with $134 megawatt of solar panels already installed, once completed the project will be capable of supplying green capacity to up to 85,000 households annually.

Speaker #1: Now let me take you through these strategic progress updates over the year reporting period. First, the progress of our green capacities projects under construction.

Speaker #1: Currently, we have six projects under construction with a total capacity of 0.7 gigawatts and investments of €422 million. The portfolio includes one solar farm, one hydro expansion project, and four BES projects.

Darius Maikštėnas: Currently, we have six projects under construction with total capacity of 0.7 gigawatts and investments of EUR 422 million. The portfolio includes one solar farm, one hydro expansion project, and four BESS projects. To start with 174 megawatt Tume solar farm in Latvia, we have already invested EUR 87 million out of total EUR 106 million. The project is progressing on track with 134 megawatts of solar panels already installed. Once completed, the project will be capable of supplying green capacity to up to 85,000 households annually. Next, Kruonis 110-megawatt pumped storage hydroelectric power plant expansion project. We have already invested EUR 109 million out of total EUR 115 million. The project currently is 82% completed. All penstock segments have been manufactured and delivered to the construction site. The lower plant, the main components, including distributor, stator, and rotor, have been preassembled and their tests successfully completed.

Darius Maikstenas: Currently, we have six projects under construction with total capacity of 0.7 gigawatts and investments of EUR 422 million. The portfolio includes one solar farm, one hydro expansion project, and four BESS projects. To start with 174 megawatt Tume solar farm in Latvia, we have already invested EUR 87 million out of total EUR 106 million. The project is progressing on track with 134 megawatts of solar panels already installed. Once completed, the project will be capable of supplying green capacity to up to 85,000 households annually. Next, Kruonis 110-megawatt pumped storage hydroelectric power plant expansion project. We have already invested EUR 109 million out of total EUR 115 million. The project currently is 82% completed. All penstock segments have been manufactured and delivered to the construction site. The lower plant, the main components, including distributor, stator, and rotor, have been preassembled and their tests successfully completed.

Speaker #2: Next, Krones $110 megawatt pumped storage hydroelectric power plant expansion project. We have already invested $109 million out of total $150 million. The project currently is 82% completed, all penstock segments have been manufactured and delivered to the construction site.

Speaker #1: To start with the 174-megawatt Tume solar farm in Latvia, we have already invested €87 million out of a total of €106 million. The project is progressing on track, with 134 megawatts of solar panels already installed.

Speaker #2: The lower plant, the main components including distributor, stator, and rotor, have been pre-assembled and their tests successfully completed. Concreting works in the site are near completion after which the pre-assemblement components will be installed in the place.

Speaker #1: Once completed, the project will be capable of supplying green capacity to up to 85,000 households annually. Next, Krones 110-megawatt pumped storage hydroelectric power plant expansion project.

Speaker #2: The project will increase the planned total capacity to 1.1 gigawatts and significantly improve the flexibility and reliability of Baltic energy grid. Now, our 4 best projects under construction.

Speaker #1: We have already invested €109 million out of a total €150 million. The project is currently 82% completed; all penstock segments have been manufactured and delivered to the construction site.

Speaker #2: Starting with $147 megawatt and $295 megawatt-hours Kelme BES project, we have invested $18 million out of total $63 million. Supported by $7.5 million capex subsidy for the project, during the second quarter deliveries of all battery units were completed, the project is collocated with 314 megawatt Kelme wind farm, allowing it to benefit from shared high-voltage infrastructure.

Speaker #1: The lower plant, with main components including distributor, stator, and rotor, has been pre-assembled and the test successfully completed. Concreting works at the site are near completion, after which the pre-assembled components will be installed in place.

Darius Maikštėnas: Concreting works in the site are near completion, after which the preassembly components will be installed in the place. The project will increase the plant's total capacity to 1.1 gigawatts and significantly improve the flexibility and reliability of Baltic energy grid. Now our four BESS projects under construction. Starting with 147 megawatt and 295 megawatt hours Kelmė BESS project. We have invested EUR 18 million out of total EUR 63 million, supported by EUR 7.5 million CapEx subsidy for the project. During the Q2, deliveries of all battery units, they are completed. The project is co-located with 314 megawatt Kelmė wind farm, allowing it to benefit from shared high voltage infrastructure. Moving on, 99 megawatt and 199 megawatt hours capacity Kruonis BESS project. We have invested EUR 13 million out of total EUR 47 million, supported by EUR 5 million CapEx subsidy.

Darius Maikstenas: Concreting works in the site are near completion, after which the preassembly components will be installed in the place. The project will increase the plant's total capacity to 1.1 gigawatts and significantly improve the flexibility and reliability of Baltic energy grid. Now our four BESS projects under construction. Starting with 147 megawatt and 295 megawatt hours Kelmė BESS project. We have invested EUR 18 million out of total EUR 63 million, supported by EUR 7.5 million CapEx subsidy for the project. During the Q2, deliveries of all battery units, they are completed. The project is co-located with 314 megawatt Kelmė wind farm, allowing it to benefit from shared high voltage infrastructure. Moving on, 99 megawatt and 199 megawatt hours capacity Kruonis BESS project. We have invested EUR 13 million out of total EUR 47 million, supported by EUR 5 million CapEx subsidy.

Speaker #1: The project will increase the plant's total capacity to 1.1 gigawatts and significantly improve the flexibility and reliability of the Baltic Energy Grid. Now, our four best projects are under construction.

Speaker #2: Moving on, $99 megawatt and $199 megawatt-hours capacity Krones BES project. We have invested $13 million out of total $47 million. Supported by $5 million capex subsidy, during the second quarter deliveries of all battery units were completed, as a standalone project it will unlock up to $1.1 gigawatt of flexibility through operational synergies with Krones pumped storage hydroelectric power plant.

Speaker #1: Starting with the 147-megawatt and 295-megawatt-hour Kelme BES project, we have invested €18 million out of the total €63 million. The project is also supported by a €7.5 million CAPEX subsidy.

Speaker #1: During the second quarter, deliveries of all battery units were completed. The project is co-located with the 314-megawatt Kelme Wind Farm, allowing it to benefit from shared high-voltage infrastructure.

Speaker #2: Next, $45 megawatt and $90 megawatt-hours Mažeikiai BES project. We have invested $6 million out of total $21 million. Supported by $2 million capex subsidy for the project.

Speaker #1: Moving on: 99-megawatt and 199-megawatt-hour capacity Krones BES project. We have invested €13 million out of a total €47 million, supported by a €5 million CAPEX subsidy.

Speaker #2: During the second quarter deliveries of all battery units were completed, and after the reporting period deliveries of all inverter units were also completed. The project is collocated with the 63 megawatt Mažeikiai wind farm, allowing it to benefit from shared high-voltage infrastructure.

Speaker #1: During the second quarter, deliveries of all battery units were completed. As a standalone project, it will unlock up to 1.1 gigawatts of flexibility through operational synergies with Krones pumped storage hydroelectric power plant.

Darius Maikštėnas: During the second quarter, deliveries of all battery units, they are completed. As a standalone project, it will unlock up to 1.1 gigawatt of flexibility through operational synergies with Kruonis pumped storage hydroelectric power plants. Next, 45 megawatts and 90 megawatt hours Mažeikiai BESS project. We have invested EUR 6 million out of total EUR 21 million, supported by EUR 2 million CapEx subsidy for the project. During the second quarter, deliveries of all battery units, they are completed. After the reporting period, deliveries of all inverter units, they are also complete. The project is co-located with the 63 megawatt Mažeikiai wind farm, allowing it to benefit from shared high voltage infrastructure. Finally, 107 megawatt of 215 megawatt hours Tume BESS project. After reporting period, we made a final investment decision for it.

Darius Maikstenas: During the second quarter, deliveries of all battery units, they are completed. As a standalone project, it will unlock up to 1.1 gigawatt of flexibility through operational synergies with Kruonis pumped storage hydroelectric power plants. Next, 45 megawatts and 90 megawatt hours Mažeikiai BESS project. We have invested EUR 6 million out of total EUR 21 million, supported by EUR 2 million CapEx subsidy for the project. During the second quarter, deliveries of all battery units, they are completed. After the reporting period, deliveries of all inverter units, they are also complete. The project is co-located with the 63 megawatt Mažeikiai wind farm, allowing it to benefit from shared high voltage infrastructure. Finally, 107 megawatt of 215 megawatt hours Tume BESS project. After reporting period, we made a final investment decision for it.

Speaker #2: Finally, $107 megawatt of $215 megawatt-hours 2 mere BES project. After reporting period, we made a final investment decision for it. For collocating 2 mere BES with our $174 megawatt 2 mere solar farm, which is also currently under construction, we are maximizing the project's efficiency through shared grid infrastructure and unified connections.

Speaker #1: Next, 45-megawatt and 90-megawatt-hour Mažeikiai BES project. We have invested €6 million out of a total €21 million. Supported by €2 million CAPEX subsidy for the project.

Speaker #1: During the second quarter, deliveries of all battery units were completed. After the reporting period, deliveries of all inverter units were also completed. The project is co-located with the 63 MW Mažeikiai wind farm.

Speaker #2: Together, these assets will deliver the flexibility and stability required to power a resilient, renewable future across the Baltics. As of now, all projects are being implemented on time, and within budget.

Speaker #1: allowing it to benefit from shared high-voltage infrastructure. Finally, the 107-megawatt, 215-megawatt-hour TUME BES project: after the reporting period, we made a final investment decision for it.

Speaker #2: Turning to our sustainability performance, already 6 months of 2026, our net green share of generation increased by 20 percentage points to 84%. However, our electricity generated decreased by 23% to 1.7 terawatt-hours.

Speaker #1: By co-locating TUME BES with our 174-megawatt TUME solar farm, which is also currently under construction, we are maximizing the project's efficiency through shared grid infrastructure and unified connections.

Darius Maikštėnas: For co-locating Tume BESS with our 174 megawatt Tume solar farm, which is also currently under construction. We are maximizing the project's efficiency through shared grid infrastructure and unified connections. Together, these assets will deliver the flexibility and stability required to power a resilient, renewable future across the Baltics. As of now, all projects are being implemented on time and within budget. Turning to our sustainability performance. Over the six months of 2026, our net green share of generation increased by 20 percentage points to 84%. However, our electricity generated decreased by 23% to 1.7 terawatt hours. The decrease was driven by lower generation at the Elektrėnai complex as the total volume of balancing capacity services provided in the first six months of 2026 was lower compared to the first six months of 2025.

Darius Maikstenas: For co-locating Tume BESS with our 174 megawatt Tume solar farm, which is also currently under construction. We are maximizing the project's efficiency through shared grid infrastructure and unified connections. Together, these assets will deliver the flexibility and stability required to power a resilient, renewable future across the Baltics. As of now, all projects are being implemented on time and within budget. Turning to our sustainability performance. Over the six months of 2026, our net green share of generation increased by 20 percentage points to 84%. However, our electricity generated decreased by 23% to 1.7 terawatt hours. The decrease was driven by lower generation at the Elektrėnai complex as the total volume of balancing capacity services provided in the first six months of 2026 was lower compared to the first six months of 2025.

Speaker #2: A decrease was driven by lower ai complex, as the total volume of balancing capacity services provided in the first 6 months of 2026 was lower compared to the first 6 months of 2025.

Speaker #1: Together, these assets will deliver the flexibility and stability required to power a resilient renewable future across the Baltics. As of now, all projects are being implemented on time and within budget.

Speaker #2: Looking at carbon intensity, our scope 1 and 2 decreased by 21%, as a result of lower electricity generation from natural gas at Elektrėnai complex.

Speaker #1: Turning to our sustainability performance. Over the six months of 2026, our net green share of generation increased by 20 percentage points to 84%. However, our electricity generated decreased by 23% to 1.7 terawatt hours.

Speaker #2: Next, our greenhouse gas emissions. It amounted to 2.7 million tons of carbon dioxide equivalent, representing a 4% year-over-year increase. This increase was driven by higher scope 3 emissions, mainly due to increased natural gas sales and higher scope 2 emissions resulting from cold weather and higher grid losses partly offset by lower electricity generation at Elektrėnai complex due to the lower need of balancing capacity service load.

Speaker #1: The decrease was driven by lower generation at the Elektrėnai Complex, as the total volume of balancing capacity services provided in the first six months of 2026 was lower compared to the first six months of 2025.

Speaker #2: Lastly, on our safety, safeguarding the health and safety of our employees and contractors is among the group's highest priorities. However, during the reporting period, we had one fatal contractor incident.

Speaker #1: Looking at carbon intensity, our Scope 1 and 2 decreased by 21% as a result of lower electricity generation from natural gas at Elektrėnai Complex.

Darius Maikštėnas: Looking at carbon intensity, our Scope 1 and 2 decreased by 21% as a result of lower electricity generation from natural gas at Elektrėnai complex. Next, our greenhouse gas emissions. It amounted to 2.7 million tons of carbon dioxide equivalent, representing a 4% year-over-year increase. This increase was driven by higher Scope 3 emissions, mainly due to increased natural gas sales and higher Scope 2 emissions resulting from cold weather and higher grid losses, partly offset by lower electricity generation at Elektrėnai complex due to the lower need of balancing capacity service level. Lastly, on our safety. Safeguarding the health and safety of our employees and contractors is among the group's highest priorities. However, during the reporting period, we had one fatal contractor incident. We are committed to take every possible measure to prevent such tragedies in the future.

Darius Maikstenas: Looking at carbon intensity, our Scope 1 and 2 decreased by 21% as a result of lower electricity generation from natural gas at Elektrėnai complex. Next, our greenhouse gas emissions. It amounted to 2.7 million tons of carbon dioxide equivalent, representing a 4% year-over-year increase. This increase was driven by higher Scope 3 emissions, mainly due to increased natural gas sales and higher Scope 2 emissions resulting from cold weather and higher grid losses, partly offset by lower electricity generation at Elektrėnai complex due to the lower need of balancing capacity service level. Lastly, on our safety. Safeguarding the health and safety of our employees and contractors is among the group's highest priorities. However, during the reporting period, we had one fatal contractor incident. We are committed to take every possible measure to prevent such tragedies in the future.

Speaker #1: Next, our greenhouse gas emissions amounted to 2.7 million tons of carbon dioxide equivalent, representing a 4% year-over-year increase. This increase was driven by higher Scope 3 emissions, mainly due to increased natural gas sales, and higher Scope 2 emissions resulting from cold weather and higher grid losses. This was partly offset by lower electricity generation at the Elektrenai Complex due to reduced need for balancing capacity service load.

Speaker #2: We are committed to take every possible measure to prevent such strategies in the future. Our employee trial has improved, and amounted to 0.48, while contractors' trial increased to 1.

Speaker #2: Therefore, the strategic overview completes. I now hand over to Jonas for financial update.

Speaker #1: Thank you, Darius. Let me start with our financial highlights of the first 6 months of 2026. Adjusted EBITDA grew by 2% year over year and reached $306 million driven by stronger performance in networks and customers and solutions.

Speaker #1: Lastly, on our safety: safeguarding the health and safety of our employees and contractors is among the group’s highest priorities. However, during the reporting period, we had one fatal contractor incident.

Speaker #1: Adjusted net profit decreased by 21%, and amounted to $116 million mainly due to a higher depreciation and amortization and lower financial activity results, which offset the adjusted EBITDA growth.

Speaker #1: We are committed to taking every possible measure to prevent such strategies in the future. Our employee TRIR has improved and amounted to 0.48, as no incidents occurred during the reporting period, while contractors' TRIR increased to 1.

Darius Maikštėnas: Our employee TRIR has improved and amounted to 0.48, as no incidents occurred during the reporting period, while contractor's TRIR increased to one. With the strategic overview complete, I now hand over to Jonas for financial update.

Darius Maikstenas: Our employee TRIR has improved and amounted to 0.48, as no incidents occurred during the reporting period, while contractor's TRIR increased to one. With the strategic overview complete, I now hand over to Jonas for financial update.

Speaker #1: Our investments decreased by 11% year over year and amounted to $306 million with 68% allocated to networks and 26% directed to green capacities. Return on capital employed decreased by 1.9 percentage points, mainly due to the lower adjusted EBIT in green capacities.

Speaker #1: That concludes the strategic overview. I will now hand over to Jonas for the financial update.

Speaker #2: Thank you, Darius. Let me start with our financial highlights of the first six months of 2026. Adjusted EBITDA grew by 2% year-over-year and reached €306 million.

Jonas Rimavičius: Thank you, Darius. Let me start with our financial highlights of the first six months of 2026. Adjusted EBITDA grew by 2% year-over-year and reached EUR 306 million, driven by stronger performance in Networks and Customers and Solutions. Adjusted net profit decreased by 21% and amounted to EUR 116 million, mainly due to higher depreciation and amortization and lower financial activity results, which offset the adjusted EBITDA growth. Our investments decreased by 11% year-over-year and amounted to EUR 306 million, with 68% allocated to Networks and 26% directed to Green Capacity. Return on capital employed decreased by 1.9 percentage points, mainly due to the lower adjusted EBIT in Green Capacity. Our net debt amounted to EUR 1.9 billion, remaining largely unchanged, supported by proceeds from the sale of 49% stake of Vilnius CHP.

Jonas Rimavicius: Thank you, Darius. Let me start with our financial highlights of the first six months of 2026. Adjusted EBITDA grew by 2% year-over-year and reached EUR 306 million, driven by stronger performance in Networks and Customers and Solutions. Adjusted net profit decreased by 21% and amounted to EUR 116 million, mainly due to higher depreciation and amortization and lower financial activity results, which offset the adjusted EBITDA growth. Our investments decreased by 11% year-over-year and amounted to EUR 306 million, with 68% allocated to Networks and 26% directed to Green Capacity. Return on capital employed decreased by 1.9 percentage points, mainly due to the lower adjusted EBIT in Green Capacity. Our net debt amounted to EUR 1.9 billion, remaining largely unchanged, supported by proceeds from the sale of 49% stake of Vilnius CHP.

Speaker #1: Our net debt amounted to $1.9 billion remaining largely unchanged, supported by proceeds from the sale of 49% stake of Vilnius CHP. As a result, net debt to adjusted EBITDA remained stable at 3.5 times, and our FFO to net debt improved to 22.2%.

Speaker #2: Driven by stronger performance in Networks and Customers & Solutions, adjusted net profit decreased by 21% and amounted to €116 million, mainly due to higher depreciation and amortization, and lower financial activity results, which offset the adjusted EBITDA growth.

Speaker #1: Additionally, after the reporting period, S&P Global Ratings reaffirmed our BBB+ credit rating with stable outlook, confirming our strong financial position. Finally, in line with our dividend policy, for the first half of 2026, we intend to distribute a dividend of 70.4 euro cents per share, which is 3.1% higher than last year.

Speaker #2: Our investments decreased by 11% year-over-year and amounted to €306 million, with 68% allocated to networks and 26% directed to green capacities.

Speaker #2: Return on capital employed decreased by 1.9 percentage points, mainly due to the lower adjusted EBIT in green capacities. Our net debt amounted to €1.9 billion, remaining largely unchanged, supported by proceeds from the sale of a 49% stake in Vilnius CHP.

Speaker #1: Let us now review our key performance indicators starting with adjusted EBITDA. Firstly, green capacities decreased by 10% to 149 million euros driven by lower captured price and volume.

Speaker #2: As a result, net debt to adjusted EBITDA remained stable at 3.5 times, and our FFO to net debt improved to 22.2%. Additionally, after the reporting period, S&P Global Ratings reaffirmed our BBB+ credit rating with a stable outlook, confirming our strong financial position.

Jonas Rimavičius: As a result, net debt-adjusted EBITDA remains stable at 3.5x, and our FFO to net debt improved to 22.2%. Additionally, after the reporting period, S&P Global Ratings reaffirmed our BBB+ credit rating with stable outlook, confirming our strong financial position. Finally, in line with our dividend policy for the H1 2026, we intend to distribute a dividend of EUR 0.704 per share, which is 3.1% higher than last year. Let us now review our key performance indicators, starting with adjusted EBITDA. Firstly, Green Capacities decreased by 10% to EUR 149 million, driven by lower captured price and volume. Secondly, Networks grew by 15% and amounted to EUR 147 million, mainly due to higher RAB as a result of continued investments into our electricity network. Thirdly, Reserve Capacities decreased by 11% to EUR 18 million, mainly due to lower results of balancing capacity services.

Jonas Rimavicius: As a result, net debt-adjusted EBITDA remains stable at 3.5x, and our FFO to net debt improved to 22.2%. Additionally, after the reporting period, S&P Global Ratings reaffirmed our BBB+ credit rating with stable outlook, confirming our strong financial position. Finally, in line with our dividend policy for the H1 2026, we intend to distribute a dividend of EUR 0.704 per share, which is 3.1% higher than last year. Let us now review our key performance indicators, starting with adjusted EBITDA. Firstly, Green Capacities decreased by 10% to EUR 149 million, driven by lower captured price and volume. Secondly, Networks grew by 15% and amounted to EUR 147 million, mainly due to higher RAB as a result of continued investments into our electricity network. Thirdly, Reserve Capacities decreased by 11% to EUR 18 million, mainly due to lower results of balancing capacity services.

Speaker #1: Secondly, networks grew by 15% and amounted to 147 million euros, mainly due to higher RAB as a result of continued investments into our electricity network.

Speaker #1: Thirdly, reserve capacities decreased by 11% to 18 million euros, mainly due to lower result of balancing capacity services. And finally, our customers and solutions EBITDA amounted to 0.2 million euros, and the growth was mainly supported by higher volume sold, lower imbalance costs, and profitable one-off natural gas wholesale transactions.

Speaker #2: Finally, in line with our dividend policy, for the first half of 2026, we intend to distribute a dividend of €0.704 per share, which is 3.1% higher than last year.

Speaker #2: Let us now review our key performance indicators, starting with adjusted EBITDA. Firstly, green capacities decreased by 10% to €149 million, driven by lower captured price and volume.

Speaker #1: Turning to segment-level EBITDA performance, and starting with green capacities, the main drivers behind 10% year-over-year decrease were firstly lower price captured by our green generation assets, especially on the hedged part, where as expected, our hedge price decreased from 130 euros last year to 82 euros this year.

Speaker #2: Secondly, networks grew by 15% and amounted to €147 million, mainly due to higher RAB as a result of continued investments into our electricity network.

Speaker #2: Thirdly, reserve capacities decreased by 11% to €18 million, mainly due to lower results from balancing capacity services. And finally, our Customers and Solutions EBITDA amounted to €0.2 million, and the growth was mainly supported by higher volume sold, lower imbalance costs, and profitable one-off natural gas wholesale transactions.

Speaker #1: Secondly, due to a very cold winter, we have had very low wind speeds in the first 6 months of 2026, which resulted in much weaker generation in our wind farms.

Jonas Rimavičius: Finally, our Customers and Solutions EBITDA amounted to EUR 0.2 million, and the growth was mainly supported by higher volume sold, lower imbalance costs, and profitable one-off natural gas wholesale transactions. Turning to segment-level EBITDA performance, and starting with Green Capacities. The main drivers behind 10% year-over-year decrease were, firstly, a lower price captured by our green generation assets, especially on the hedged part, where, as expected, our hedge price decreased from EUR 130 last year to EUR 82 this year. Secondly, due to a very cold winter, we have had very low wind speeds in the first six months of 2026, which resulted in much weaker generation in our wind farms. However, the decrease was partly offset by lower OpEx due to higher spending on development projects in 2025. Now, the Network segment.

Jonas Rimavicius: Finally, our Customers and Solutions EBITDA amounted to EUR 0.2 million, and the growth was mainly supported by higher volume sold, lower imbalance costs, and profitable one-off natural gas wholesale transactions. Turning to segment-level EBITDA performance, and starting with Green Capacities. The main drivers behind 10% year-over-year decrease were, firstly, a lower price captured by our green generation assets, especially on the hedged part, where, as expected, our hedge price decreased from EUR 130 last year to EUR 82 this year. Secondly, due to a very cold winter, we have had very low wind speeds in the first six months of 2026, which resulted in much weaker generation in our wind farms. However, the decrease was partly offset by lower OpEx due to higher spending on development projects in 2025. Now, the Network segment.

Speaker #1: However, the decrease was partly offset by lower OPEX due to higher spending on development projects in 2025. Now, the network segment. 11% growth in networks EBITDA was mainly supported by a higher regulated asset base, which increased from 1.8 to 1.9 billion euros, and was driven by continued investments into electricity network.

Speaker #2: Turning to segment-level EBITDA performance and starting with Green Capacities, the main drivers behind the 10% year-over-year decrease were, firstly, lower prices captured by our green generation assets, especially on the hedged part, where as expected, our hedge price decreased from €130 last year to €82 this year.

Speaker #1: Weighted average cost of capital remained stable, at 5.74%. Next, reserve capacity segment. The segment posted 38% year-over-year decrease, which was mainly driven by lower results of balancing capacity services, as the market matures and plant major overhaul of unit 7 at Elektrėnai complex.

Speaker #2: Secondly, due to a very cold winter, we have had very low wind speeds in the first six months of 2026, which resulted in much weaker generation at our wind farms.

Speaker #2: However, the decrease was partly offset by lower OPEX, due to higher spending on development projects in 2025. Now, the network segment. Eleven percent growth in Networks EBITDA was mainly supported by a higher regulated asset base, which increased from €1.8 billion to €1.9 billion, and was driven by continued investments into the electricity network.

Speaker #1: And finally, customers and solutions. Adjusted EBITDA amounted to 0.2 million euros, driven by both battery results of electricity and natural gas. On the electricity side, results were better due to a higher sales volumes and reduced imbalance costs, on the natural gas side, due to higher volume sold and profitable wholesale transactions.

Jonas Rimavičius: 11% growth in Networks EBITDA was mainly supported by a higher Regulated Asset Base, which increased from EUR 1.8 to EUR 1.9 billion, and was driven by continued investments into electricity network. Weighted average cost of capital remains stable at 5.74%. Next, Reserve Capacity segment. The segment posted 38% year-over-year decrease, which was mainly driven by lower results of balancing capacity services as the market matures and planned major overhaul of unit 7 at Elektrėnai complex. Finally, Customers and Solutions. Adjusted EBITDA amounted to EUR 0.2 million, driven by both better results of electricity and natural gas. On the electricity side, results were better due to higher sales volumes and reduced imbalance costs. On the natural gas side, due to higher volume sold and profitable wholesale transactions. Having reviewed the segment results, let us now turn to our investment activities.

Jonas Rimavicius: 11% growth in Networks EBITDA was mainly supported by a higher Regulated Asset Base, which increased from EUR 1.8 to EUR 1.9 billion, and was driven by continued investments into electricity network. Weighted average cost of capital remains stable at 5.74%. Next, Reserve Capacity segment. The segment posted 38% year-over-year decrease, which was mainly driven by lower results of balancing capacity services as the market matures and planned major overhaul of unit 7 at Elektrėnai complex. Finally, Customers and Solutions. Adjusted EBITDA amounted to EUR 0.2 million, driven by both better results of electricity and natural gas. On the electricity side, results were better due to higher sales volumes and reduced imbalance costs. On the natural gas side, due to higher volume sold and profitable wholesale transactions. Having reviewed the segment results, let us now turn to our investment activities.

Speaker #2: Weighted average cost of capital remained stable at 5.74%. Next, the reserve capacity segment. The segment posted a 38% year-over-year decrease, which was mainly driven by lower results of balancing capacity services as the market matures and the planned major overhaul of Unit Seven at Elektrėnai Complex.

Speaker #1: Having reviewed the segment's results, let us now turn to our investment activities. In the first 6 months of this year, our investments amounted to $306 million and were 11% lower than last year.

Speaker #1: The reason behind this decrease was lower investments in green capacities segment, as 6 projects reached COD in 2025. However, the decrease in investments in the green capacities was offset by higher investments in the networks, where we invested more on electricity distribution maintenance and expansion.

Speaker #2: And finally, customers and solutions. Adjusted EBITDA amounted to €0.2 million, driven by better results in both electricity and natural gas. On the electricity side, results were better due to higher sales volumes and reduced imbalance costs.

Speaker #1: Turning to free cash flow, it amounted to positive $5 million as adjusted EBITDA fully covered our investments. Also, it is worth to mention that asset rotation result is not included in the free cash flow calculation.

Speaker #2: On the natural gas side, this was due to higher volumes sold and profitable wholesale transactions. Having reviewed the segment's results, let us now turn to our investment activities.

Speaker #2: In the first six months of this year, our investments amounted to €306 million and were 11% lower than last year. The reason behind this decrease was lower investments in the green capacity segment, as six projects reached COD in 2025.

Jonas Rimavičius: In the first six months of this year, our investments amounted to EUR 306 million and were 11% lower than last year. The reason behind this decrease was lower investments in green capacity segments as six projects reached COD in 2025. However, the decrease in investments in the green capacities was offset by higher investments in the networks, where we invested more on electricity distribution, maintenance, and expansion. Turning to free cash flow, it amounted to +EUR 5 million as adjusted EBITDA fully covered our investments. Also, it is worth to mention that asset rotation result is not included in the free cash flow calculation. Let us now review our leverage metrics. At the end of the H1 2026, our net debt amounted to EUR 1.9 billion, remaining largely unchanged.

Jonas Rimavicius: In the first six months of this year, our investments amounted to EUR 306 million and were 11% lower than last year. The reason behind this decrease was lower investments in green capacity segments as six projects reached COD in 2025. However, the decrease in investments in the green capacities was offset by higher investments in the networks, where we invested more on electricity distribution, maintenance, and expansion. Turning to free cash flow, it amounted to +EUR 5 million as adjusted EBITDA fully covered our investments. Also, it is worth to mention that asset rotation result is not included in the free cash flow calculation. Let us now review our leverage metrics. At the end of the H1 2026, our net debt amounted to EUR 1.9 billion, remaining largely unchanged.

Speaker #1: Let us now review our leverage metrics. At the end of the first half of 2026, our net debt amounted to 1.9 billion euros, remaining largely unchanged.

Speaker #1: At the same time, our main credit metric, FFO to net debt, improved to 22.2%, supported by an increase in FFO. Net debt to adjusted EBITDA remained stable at 3.5 times.

Speaker #2: However, the decrease in investments in the green capacities was offset by higher investments in the networks, where we invested more in electricity distribution, maintenance, and expansion.

Speaker #1: Finally, let us now look at our guidance for full year 2026. Following the first 6 months performance, which was in line with our expectations, we reiterate our full year 2026 adjusted EBITDA guidance of 550 to 600 million euros, and investment guidance of 590 to 690 million euros.

Speaker #2: Turning to free cash flow, it amounted to a positive €5 million, as adjusted EBITDA fully covered our investments. Also, it is worth mentioning that the asset rotation result is not included in the free cash flow calculation.

Speaker #2: Let us now review our leverage metrics. At the end of the first half of 2026, our net debt amounted to €1.9 billion, remaining largely unchanged.

Speaker #1: With that, I will hand over to Darius for the concluding remarks.

Speaker #2: Thank you, Jonas. Let me briefly summarize Ignitis group's performance during the first 6 months of 2026. Over the first half of 2026, we marked a sustained strategic progress and consistent financial performance, with key highlights as follows: First, our adjusted EBITDA reached 306 million euros, representing a 2% year-over-year increase.

Speaker #2: At the same time, our main credit metric, FFO to net debt, improved to 22.2%, supported by an increase in FFO. Net debt to adjusted EBITDA remained stable at 3.5x.

Jonas Rimavičius: At the same time, our main credit metric, FFO to net debt, improved to 22.2%, supported by an increase in FFO. Net debt-adjusted EBITDA remains stable at 3.5 times. Finally, let us now look at our guidance for full year 2026. Following the first six months' performance, which was in line with our expectations, we reiterate our full year 2026 adjusted EBITDA guidance of EUR 550 to EUR 600 million and investment guidance of EUR 590 to EUR 690 million. With that, I will hand over to Darius for the concluding remarks.

Jonas Rimavicius: At the same time, our main credit metric, FFO to net debt, improved to 22.2%, supported by an increase in FFO. Net debt-adjusted EBITDA remains stable at 3.5 times. Finally, let us now look at our guidance for full year 2026. Following the first six months' performance, which was in line with our expectations, we reiterate our full year 2026 adjusted EBITDA guidance of EUR 550 to EUR 600 million and investment guidance of EUR 590 to EUR 690 million. With that, I will hand over to Darius for the concluding remarks.

Speaker #2: Finally, let us now look at our guidance for full year 2026. Following the first six months' performance, which was in line with our expectations, we reiterate our full year 2026 adjusted EBITDA guidance of €550 to €600 million and investment guidance of €590 to €690 million.

Speaker #2: Second, we continued disciplined green capacities portfolio delivery, with 2.1 gigawatt of installed capacity and 0.6 gigawatt of assets under construction. Additionally, adding 0.1 gigawatt to assets under construction, as we made final investment decision for 2-man man battery energy storage system of 107 megawatt and 215 megawatt hours, after reporting period.

Speaker #2: With that, I will hand over to Darius for the concluding remarks.

Speaker #1: Thank you, Jonas. Let me briefly summarize Ignitis Group's performance during the first six months of 2026. Over the first half of 2026, we marked sustained strategic progress and consistent financial performance, with key highlights as follows.

Darius Maikštėnas: Thank you, Jonas. Let me briefly summarize Ignitis Group's performance during the first six months of 2026. Over the H1 2026, we marked a sustained strategic progress and consistent financial performance with key highlights as follows. First, our adjusted EBITDA reached EUR 306 million, representing a 2% year-over-year increase. Second, we continued to discipline green capacities portfolio delivery with 2.1 gigawatts of installed capacity and 0.6 gigawatts of assets under construction. Additionally, adding 0.1 gigawatts to assets under construction as we made final investment decision for Tume BESS of 107 megawatts and 215 megawatt hours after reporting period. Third, we preserved a stable balance sheet with net debt to adjusted EBITDA at 3.5 times and reaffirmed BBB+ credit rating from S&P after reporting period.

Darius Maikstenas: Thank you, Jonas. Let me briefly summarize Ignitis Group's performance during the first six months of 2026. Over the H1 2026, we marked a sustained strategic progress and consistent financial performance with key highlights as follows. First, our adjusted EBITDA reached EUR 306 million, representing a 2% year-over-year increase. Second, we continued to discipline green capacities portfolio delivery with 2.1 gigawatts of installed capacity and 0.6 gigawatts of assets under construction. Additionally, adding 0.1 gigawatts to assets under construction as we made final investment decision for Tume BESS of 107 megawatts and 215 megawatt hours after reporting period. Third, we preserved a stable balance sheet with net debt to adjusted EBITDA at 3.5 times and reaffirmed BBB+ credit rating from S&P after reporting period.

Speaker #2: Third, we preserved a stable balance sheet with net debt to adjusted EBITDA at 3.5 times, and reaffirmed BBB plus credit rating from S&P after reporting period.

Speaker #1: First, our adjusted EBITDA reached €306 million, representing a 2% year-over-year increase. Second, we continued disciplined green capacities portfolio delivery with 2.1 gigawatts of installed capacity and 0.6 gigawatts of assets under construction.

Speaker #2: Fourth, in line with our dividend policy, for the first half of 2026, we intend to distribute a dividend of 70.4 euro cents per share, representing 3.1% increase year-over-year.

Speaker #2: And lastly, we reiterate our full year guidance for 2026. We expect adjusted EBITDA to be in the range of 550 to 600 million euros, and investments between 590 and 600 million euros.

Speaker #1: Additionally, adding 0.1 gigawatts to assets under construction as we made final investment decision for two main battery energy storage systems of 107 megawatts and 215 megawatt-hours after the reporting period.

Speaker #2: With that, thank you for joining today's call. We appreciate your time, and continued interest in Ignitis group.

Speaker #1: Third, we preserved a stable balance sheet with net debt to adjusted EBITDA at 3.5 times, and reaffirmed our BBB+ credit rating from S&P after the reporting period.

Speaker #3: Thank you to our speakers. We will now open the floor for questions. Our first question is: Could you please provide a bit more color on a sharp drop in balancing capacity service volumes in reserved capacities in Q2?

Darius Maikštėnas: Fourth, in line with our dividend policy for the H1 2026, we intend to distribute a dividend of 70.4 euro cents per share, representing 3.1% increase year-over-year. Lastly, we reiterate our full year guidance for 2026. We expect adjusted EBITDA to be in the range of EUR 550 to EUR 600 million, and investments between EUR 590 and EUR 690 million. With that, thank you for joining today's call. We appreciate your time and continued interest in Ignitis Group.

Darius Maikstenas: Fourth, in line with our dividend policy for the H1 2026, we intend to distribute a dividend of 70.4 euro cents per share, representing 3.1% increase year-over-year. Lastly, we reiterate our full year guidance for 2026. We expect adjusted EBITDA to be in the range of EUR 550 to EUR 600 million, and investments between EUR 590 and EUR 690 million. With that, thank you for joining today's call. We appreciate your time and continued interest in Ignitis Group.

Speaker #1: Fourth, in line with our dividend policy, for the first half of 2026, we intend to distribute a dividend of €0.704 per share, representing a 3.1% increase year over year.

Speaker #3: Was it due to increased competition, unfavorable spark spread, or else?

Speaker #1: Yeah. So in reserved capacities, indeed, we had the worst quarter than a year ago. But we need to remember that last year, we have had just entered into completed the synchronization of continental Europe.

Speaker #1: And lastly, we reiterate our full-year guidance for 2026. We expect adjusted EBITDA to be in the range of €550 to €600 million, and investments between €590 and €690 million.

Speaker #1: With that, thank you for joining today's call. We appreciate your time and continued interest in Ignitis Group.

Speaker #1: So naturally, there was more volatility in the balancing capacity market. Hence, the results of these facilities were better this year. The market has already normalized due to both more market participants entering the market and also existing participants getting more familiar with how the market operates.

Speaker #3: Thank you to our speakers. We will now open the floor for questions. Our first question is: Could you please provide a bit more color on the sharp drop in balancing capacity service volumes in reserved capacities in Q2?

Operator: Thank you to our speakers. We will now open the floor for questions. Our first question is: Could you please provide a bit more color on the sharp drop in balancing capacity service volumes and reserved capacities in Q2? Was it due to increased competition, unfavorable spark spreads, or else?

Speaker #3: Was it due to increased competition, unfavorable spark spread, or something else?

Speaker #2: Yeah. So, in reserved capacities, indeed we had a worse quarter than a year ago. But we need to remember that last year we had just entered synchronization with continental Europe.

Darius Maikštėnas: Yeah. In reserve capacities, indeed, we had a worse quarter than a year ago. But we need to remember that last year, we have had just completed the synchronization of continental Europe, so naturally, there was more volatility in the balancing capacity market. Hence, the results of these facilities were better. This year, the market has already normalized due to both more market participants entering the market and also existing participants getting more familiar with how the market operates. That being said, just a reminder, reserve capacities is essentially the downside-protected option to benefit from volatility in the market. So one quarter doesn't mean that the results will continue on the lower level. But yes, we need to acknowledge that the balancing capacity market is becoming more competitive, and we cannot, and we did not expect prices to remain at last year's levels.

Darius Maikstenas: Yeah. In reserve capacities, indeed, we had a worse quarter than a year ago. But we need to remember that last year, we have had just completed the synchronization of continental Europe, so naturally, there was more volatility in the balancing capacity market. Hence, the results of these facilities were better. This year, the market has already normalized due to both more market participants entering the market and also existing participants getting more familiar with how the market operates. That being said, just a reminder, reserve capacities is essentially the downside-protected option to benefit from volatility in the market. So one quarter doesn't mean that the results will continue on the lower level. But yes, we need to acknowledge that the balancing capacity market is becoming more competitive, and we cannot, and we did not expect prices to remain at last year's levels.

Speaker #1: That being said, just a reminder, reserved capacities is essentially the downside protected option to benefit from volatility in the market. So one quarter doesn't mean that the results will continue on the lower level.

Speaker #2: So, naturally, there was more volatility in the balancing capacity market. Hence, the results of these facilities were better. This year, the market has already normalized due to both more market participants entering the market and also existing participants getting more familiar with how the market operates.

Speaker #1: But yes, we need to acknowledge that balancing capacity market is becoming more competitive, and we cannot and we did not expect prices to remain at last year's levels.

Speaker #3: The second question we received is as following. Could you please give us your take on the legislation changes related to the prosumer regulation model?

Speaker #3: The net metering seemingly winning against the net billing model. How much does the new regime change expectations that losses in that part of customers and solutions business segment will be dramatically cut?

Speaker #2: That being said, just a reminder, reserved capacities are essentially a downside-protected option to benefit from volatility in the market. So, one quarter doesn't mean that the results will continue at a lower level.

Speaker #1: Yeah. So indeed, the decision was to keep the net metering model in place, but at the same time, introduce additional fees for both prosumers and the regular customers to cover the negative impact that prosumers are having.

Speaker #2: But yes, we need to acknowledge that the balancing capacity market is becoming more competitive, and we cannot—and did not—expect prices to remain at last year's levels.

Speaker #1: In terms of our expectations, we think that the legislation, which has been already passed, will cover around 60 to 70 percent of the losses which we are currently suffering.

Operator: The second question we received is as following: Could you please give us your take on the legislation changes related to the prosumer regulation model, the net metering model. How much does the new regime change expectations that losses in that part of customers and solutions business segment will be dramatically cut?

Speaker #3: The second question we received is as follows: Could you please give us your take on the legislative changes related to the prosumer regulation model, that is, the net metering sealing model?

Speaker #3: How much does the new regime change expectations that losses in that part of Customers and Solutions business segment will be dramatically cut?

Speaker #1: So there will still remain some part which we'll try to address through pricing decisions on our side. But the bottom line, we expect around 60 to 70 percent of losses to be covered by the change in the legislation.

Speaker #2: Yes, so indeed the decision was to keep the net metering model in place, but at the same time, introduce additional fees for both prosumers and regular customers to cover the negative impact that prosumers are having.

Darius Maikštėnas: Yeah. Indeed, the decision was to keep the net metering model in place, but at the same time introduce additional fees for both prosumers and the regular customers to cover the negative impact that prosumers are having. In terms of our expectations, we think that the legislation, which has been already passed, will cover around 60% to 70% of the losses which we are currently suffering. So there will still remain some part which we'll try to address through pricing decisions on our side. But the bottom line, we expect around 60% to 70% of losses to be covered by the change in legislation.

Darius Maikstenas: Yeah. Indeed, the decision was to keep the net metering model in place, but at the same time introduce additional fees for both prosumers and the regular customers to cover the negative impact that prosumers are having. In terms of our expectations, we think that the legislation, which has been already passed, will cover around 60% to 70% of the losses which we are currently suffering. So there will still remain some part which we'll try to address through pricing decisions on our side. But the bottom line, we expect around 60% to 70% of losses to be covered by the change in legislation.

Speaker #3: Next question we have is: Could you please elaborate on the relatively muted EBITDA improvement in customers and solutions segment during the Q2 despite visibly higher revenues?

Speaker #3: It would be great to get an approximate EBITDA breakdown between the gas and electricity businesses within this segment.

Speaker #2: In terms of our expectations, we think that the legislation which has already been passed will cover around 60 to 70 percent of the losses which we are currently suffering.

Speaker #1: Yeah. So in Q2, we are starting to see the negative impact of prosumers because that's when the bigger solar generation starts. So that happens every year.

Speaker #2: So, there will still remain some parts, which we'll try to address through pricing decisions on our side. But, in the bottom line, we expect around 60 to 70 percent of losses to be covered by the change in the legislation.

Speaker #1: And in 2026, it's not an exception. Prosumer impact is still at 100% because we are not yet accounting for the positive impact from legislation, which we just discussed.

Speaker #3: Next question we have is: Could you please elaborate on the relatively muted EBITDA improvement in the Customers and Solutions segment during Q2, despite visibly higher revenues?

Operator: Next question we have is: Could you please elaborate on the relatively muted EBITDA improvement in customers and solutions segment during Q2 despite visibly higher revenues? It would be great to get an approximate EBITDA breakdown between the gas and electricity businesses within this segment.

Speaker #1: So in short, prosumers are the main driver of muted EBITDA. Improvement.

Speaker #3: It would be great to get an approximate EBITDA breakdown between the gas and electricity businesses within this segment.

Speaker #3: Next question: Green capacity for adjusted EBITDA increase by 9.8 percentage year over year. To 62.9 million euros in Q2, despite just lower revenues. The increase was mainly related to lower operating expenses for new development projects.

Speaker #2: Yeah. So in Q2, we are starting to see the negative impact of prosumers because that's when the larger solar generation starts. That happens every year.

Darius Maikštėnas: Yeah. So in Q2, we are starting to see the negative impact of prosumers because that is when the bigger solar generation starts. So that happens every year, and in 2026, it is not an exception. Prosumer impact is still at 100% because we are not yet accounting for the positive impact from legislation which we just discussed. In short, prosumers are the main driver of muted EBITDA improvement.

Darius Maikstenas: Yeah. So in Q2, we are starting to see the negative impact of prosumers because that is when the bigger solar generation starts. So that happens every year, and in 2026, it is not an exception. Prosumer impact is still at 100% because we are not yet accounting for the positive impact from legislation which we just discussed. In short, prosumers are the main driver of muted EBITDA improvement.

Speaker #3: I wonder, if this new run rate mostly hidden under other operating expenses in the segment, is something we can extrapolate going forward?

Speaker #2: And in 2026, it's not an exception. Prosumer impact is still at 100% because we are not yet accounting for the positive impact from legislation, which we just discussed.

Speaker #1: Yeah. So we are already starting to see the first results of our operational efficiency program, where we are trying to focus on the best projects that we have and limit our development expenses on less promising projects.

Speaker #2: So in short, prosumers are the main driver of muted EBITDA improvement.

Speaker #1: And indeed, going forward, the current run rate is more accurate than what we've seen last year.

Speaker #3: Next question. Green capacity so adjusted EBITDA increase by 9.8 percentage year over year. To 62.9 million euros in Q2 despite just lower revenues. The increase was mainly related to lower operating expenses for new development projects.

Operator: Next question. Green capacity saw adjusted EBITDA increase by 9.8% year-over-year to EUR 62.9 million in Q2, despite just lower revenues. The increase was mainly related to lower operating expenses for new development projects. I wonder if this new run rate, mostly hidden under other operating expenses in the segment, is something we can extrapolate going forward.

Speaker #3: The following question: Could you please give us a hint about when one can reasonably expect some kind of clarity on the current North Offshore wind farm?

Speaker #3: I wonder if this new run rate, mostly hidden under other operating expenses in the segment, is something we can extrapolate going forward.

Speaker #1: Yeah. So on the current North, we are working towards obtaining the construction permit in 2027. And the further decisions would be expected after that.

Speaker #2: Yes, so we are already starting to see the first results of our operational efficiency program, where we are trying to focus on the best projects that we have and limit our development expenses on less promising projects.

Jonas Rimavičius: Yes. So, we are already starting to see the first results of our operational efficiency program, where we are trying to focus on the best projects that we have and limit our development expenses on less promising projects. Indeed, going forward, the current run rate is more accurate than what we have seen last year.

Jonas Rimavicius: Yes. So, we are already starting to see the first results of our operational efficiency program, where we are trying to focus on the best projects that we have and limit our development expenses on less promising projects. Indeed, going forward, the current run rate is more accurate than what we have seen last year.

Speaker #3: Next question: What were the factors driving low production from wind apart from lower wind speeds in Q1 and Q2?

Speaker #2: And indeed, going forward, the current run rate is more accurate than what we've seen last year.

Speaker #1: Yeah. So in terms of other factors, I mean, the wind speeds are the main one. We did have some maintenance, longer maintenance periods for one of our wind farms in Mažeikiai, but the main driver by far is lower wind speeds.

Operator: The following question: Could you please give us a hint about when one can reasonably expect some kind of clarity on the Curonian Nord offshore wind farm?

Speaker #3: Could you please give us a hint about when one can reasonably expect some kind of clarity on the Curonian North Offshore wind farm?

Speaker #2: Yes, so on Curonian North, we are working towards obtaining the construction permit in 2027, and further decisions would be expected after that.

Jonas Rimavičius: Yes. On Curonian Nord, we are working towards obtaining the construction permit in 2027. The further decisions would be expected after that.

Jonas Rimavicius: Yes. On Curonian Nord, we are working towards obtaining the construction permit in 2027. The further decisions would be expected after that.

Speaker #3: Next question: What was the cost of electricity purchases to cover low production from wind in Q1 and in Q2?

Speaker #3: Next question. What were the factors driving low production from wind, apart from lower wind speeds, in Q1 and Q2?

Operator: Next question. What were the factors driving low production from wind, apart from lower wind speeds in Q1 and Q2?

Speaker #1: So I think on this one, I don't have the details in front of me. We can follow up directly after the call through our industry relations team.

Speaker #2: Yeah, so in terms of other factors, I mean the wind speeds are the main one. We did have some longer maintenance periods for one of our wind farms in Majeje, but the main driver by far is lower wind speeds.

Jonas Rimavičius: Yeah. In terms of other factors, the wind speeds are the main one. We did have some longer maintenance periods for one of our wind farms in Mažeikiai, but the main driver by far is lower wind speeds.

Jonas Rimavicius: Yeah. In terms of other factors, the wind speeds are the main one. We did have some longer maintenance periods for one of our wind farms in Mažeikiai, but the main driver by far is lower wind speeds.

Speaker #3: One more question. What is the situation in the balancing capacity market? Can you share year-over-year profit development in the market?

Speaker #1: Yeah. So on the balancing capacity market, I think we covered that on the reserve capacities part. And just to recap, we do see the decrease in profit from balancing capacities because the prices for the services are lower due to new assets participating in the services and then existing participants being more accurate and more capable to provide their bids.

Speaker #3: Next question: What was the cost of electricity purchases to cover low production from wind in Q1 and in Q2?

Operator: Next question. What was the cost of electricity purchases to cover low production from wind in Q1 and in Q2?

Speaker #2: So, I think on this one, I don't have the details in front of me. We can follow up directly after the call through our Investor Relations team.

Jonas Rimavičius: I think on this one, I do not have the details in front of me. We can follow up directly after the call through our investor relations team.

Jonas Rimavicius: I think on this one, I do not have the details in front of me. We can follow up directly after the call through our investor relations team.

Speaker #1: That being said, we are also benefiting from this situation because on customers and solutions side, we are suffering lower imbalance costs and also on the renewable side, we are also suffering lower balancing costs.

Operator: One more question. What is the situation in the balancing capacity market? Can you share year-over-year profit development in the market?

Speaker #3: One more question. What is the situation in the balancing capacity market? Can you share year-over-year profit development in the market?

Speaker #1: So all in all, it's still a negative for us, the decrease in market prices. But we do have some positives and also this decrease is not unexpected for us, and that was foreseen when we provided the guidance for the year.

Speaker #2: Yeah, so on the balancing capacity market, I think we covered that on the reserve capacity spot. And just to recap, we do see the decrease in profit from balancing capacities because the prices for the services are lower due to new assets participating in the services, and then existing participants being more accurate and more capable to provide their bids.

Jonas Rimavičius: Yeah. On the balancing capacity market, I think we covered that on the reserve capacities part. Just to recap, we do see the decrease in profit from balancing capacities, because the prices for the services are lower due to new assets participating in the services and then the existing participants being more accurate and more capable to provide their bids. That being said, we are also benefiting from this situation because on customers and solutions side, we are suffering lower imbalance costs. Also on the renewable side, we are also suffering lower balancing costs. All in all, it is still a negative for us, the decrease in market prices, but we do have some positives. Also, this decrease is not unexpected for us, and that was foreseen when we provided the guidance for the year.

Jonas Rimavicius: Yeah. On the balancing capacity market, I think we covered that on the reserve capacities part. Just to recap, we do see the decrease in profit from balancing capacities, because the prices for the services are lower due to new assets participating in the services and then the existing participants being more accurate and more capable to provide their bids. That being said, we are also benefiting from this situation because on customers and solutions side, we are suffering lower imbalance costs. Also on the renewable side, we are also suffering lower balancing costs. All in all, it is still a negative for us, the decrease in market prices, but we do have some positives. Also, this decrease is not unexpected for us, and that was foreseen when we provided the guidance for the year.

Speaker #3: The following question: In your fact sheet, Mažeikiai wind farm generated 9.4 gigawatt-hours in Q2 2026 versus 33.3 gigawatt-hours a year earlier. A load factor of 6.9% against 14 to 15 percent at your Kelna parks in the same market and quarter, and at 28% historical average for Mažeikiai itself.

Speaker #2: That being said, we are also benefiting from this situation, because on the customers and solutions side we are suffering lower imbalance costs, and also, on the renewable side, we are also suffering lower balancing costs.

Speaker #3: Wind resource alone doesn't explain the gap. What this an outage or curtailment issue or something else? And is it resolved?

Speaker #1: Yeah. Indeed. So when I mentioned this longer maintenance period for one of the wind farms, that indeed was Mažeikiai. And in that particular wind farm, due to reoccurring cable faults, we have decided to undergo a more substantial maintenance for the cables and replacing parts of them and that was and then we decided to do it during the low wind season and expect to fully complete it by the start of high wind season.

Speaker #2: So, all in all, it's still a negative for us—the decrease in market prices. But we do have some positives, and also, this decrease is not unexpected for us; it was foreseen when we provided the guidance for the year.

Speaker #3: The following question. In your fact sheet, Majejian wind farm generated 9.4 gigawatt hours in Q2 2026 versus 33.3 gigawatt hours a year earlier. A load factor of 6.9% against 14 to 15% at your Kelma parks in the same market and quarter.

Operator: The following question. In your fact sheet, Mažeikiai Wind Farm generated 9.4 gigawatt hours in Q2 2026 versus 33.3 gigawatt hours a year earlier, a load factor of 6.9% against 14% to 15% at your Kelmė parks in the same market and quarter, and a 28% historical average for Mažeikiai itself. Wind resource alone doesn't explain the gap. Was this an outage or a curtailment issue or something else? Is it resolved?

Speaker #1: So essentially, in Q3.

Speaker #3: One more question. Adjusted return on capital employed is 6.7%, down 1.9 percentage points, and the ownership expectations ledger sets a floor of 6.5 percentage.

Speaker #3: And at 28% historical average for Majeji itself. Wind resource alone doesn't explain the gap. Was this an outage, or a curtailment issue, or something else?

Speaker #3: And is it resolved?

Speaker #3: Your own 2026-2029 target is an average of between 6.5 to 7.5 percent. What gets you back above the midpoint and by when?

Speaker #2: Yeah. Indeed. So when I mentioned this longer maintenance period for one of the wind farms that indeed was Majeji and in that particular wind farm due to reoccurring cable faults we have decided to undergo a more substantial maintenance for the cables and replacing parts of them and that was and then we decided to do it during the low wind season and expect to fully complete it by the start of high wind season.

Jonas Rimavičius: Yeah, indeed. When I mentioned this longer maintenance period for one of the wind farms, that indeed was Mažeikiai. In that particular wind farm, due to reoccurring cable faults, we have decided to undergo a more substantial maintenance for the cables, replacing parts of them. We decided to do it during the low wind season, and expect to fully complete it by the start of high wind season, so essentially in Q3.

Jonas Rimavicius: Yeah, indeed. When I mentioned this longer maintenance period for one of the wind farms, that indeed was Mažeikiai. In that particular wind farm, due to reoccurring cable faults, we have decided to undergo a more substantial maintenance for the cables, replacing parts of them. We decided to do it during the low wind season, and expect to fully complete it by the start of high wind season, so essentially in Q3.

Speaker #1: Yeah. So in terms of adjusted ROC being declining, that is, of course, not ideal, but what I can say is that we do intend to stay within our target range of 6.5 and then 7.5.

Speaker #3: One more question. Would it be possible in the future to report separately power and natural gas results within the customers and solution business segment?

Speaker #2: So essentially in Q3.

Speaker #1: Thank you for the remark. We'll take that into consideration and we'll consider your suggestion.

Speaker #3: One more question. Adjusted return on capital employed is 6.7%, down 1.9 percentage points, and the ownership expectations letter sets a floor of 6.5%.

Operator: One more question. Adjusted return on capital employed is 6.7%, down 1.9 percentage points. The ownership expectations letter sets a floor of 6.5 percentage. Your own 2026, 2029 target is an average of between 6.5% to 7.5%. What gets you back above the midpoint and by when?

Speaker #3: The following question: Could you give us some color on refinancing efforts of 2026-2027 bonds? When could investors expect more news and does the company consider hybrid bond issuance?

Speaker #3: Your own 2026–2029 target is an average of between 6.5% to 7.5%. What gets you back above the midpoint, and by when?

Speaker #2: Yeah. So, in terms of adjusted ROC being in decline, that is of course not ideal, but what I can say is that we do intend to stay within our target range of 6.5 to 7.5.

Jonas Rimavičius: Yeah. In terms of adjusted ROCE declining, that is, of course, not ideal, but what I can say is that we do intend to stay within our target range of 6.5% and 7.5%.

Jonas Rimavicius: Yeah. In terms of adjusted ROCE declining, that is, of course, not ideal, but what I can say is that we do intend to stay within our target range of 6.5% and 7.5%.

Speaker #1: Yeah. So you're right. We do have the 300 million bonds maturing in the middle of 2027. I will not comment on the precise plans in terms of specific transactions, but naturally, we do intend to refinance these bonds ahead of their maturity.

Speaker #3: One more question. Would it be possible in the future to report power and natural gas results separately within the Customers and Solution business segment?

Operator: One more question. Would it be possible in the future to report separately power and natural gas results within the Customers and Solution business segment?

Speaker #3: One more question. What loss in prosumers do you expect in 2026? What year-over-year impact do you expect from the updated prosumer regulations in 2027?

Jonas Rimavičius: Thank you for the remark. We will take that into consideration and we will consider the suggestion.

Jonas Rimavicius: Thank you for the remark. We will take that into consideration and we will consider the suggestion.

Speaker #2: Thank you for the remark, and we'll consider your suggestion.

Speaker #1: So in terms of 2026 prosumer impact, so last year we had close to 30 million of negative EBITDA from prosumers. This year, naturally, because number of prosumers has increased, we would expect somewhat higher negative impact from them.

Operator: The following question: Could you give us some color on refinancing efforts of 2026/2027 bonds? When could investors expect more news, and does the company consider hybrid bond issuance?

Speaker #3: The following question: Could you give us some color on refinancing efforts for the 2026 and 2027 bonds? When could investors expect more news, and does the company consider hybrid bond issuance?

Speaker #2: Yeah, so you are right. We do have the €300 million bonds maturing in the middle of 2027. I will not comment on the precise plans in terms of specific transactions, but naturally, we do intend to refinance these bonds ahead of their maturity.

Jonas Rimavičius: Yeah. You are right. We do have the EUR 300 million bonds maturing in the middle of 2027. I will not comment on the precise plans in terms of specific transactions. But naturally, we do intend to refinance these bonds ahead of their maturity.

Jonas Rimavicius: Yeah. You are right. We do have the EUR 300 million bonds maturing in the middle of 2027. I will not comment on the precise plans in terms of specific transactions. But naturally, we do intend to refinance these bonds ahead of their maturity.

Speaker #1: And in terms of going forward, as I mentioned before, we expect due to new legislation around 60 to 70 percent of that negative amount to be covered.

Speaker #3: We have no further questions. Thank you for joining today's call. Our investor relations team remains available for any follow-up questions. We look forward to speaking with you again next quarter.

Operator: One more question. What loss in prosumers do you expect in 2026? What year-over-year impact do you expect from the updated prosumer regulations in 2027?

Speaker #3: One more question: What loss on prosumers do you expect in 2026? What year-over-year impact do you expect from the updated prosumer regulations in 2027?

Speaker #2: So, in terms of 2026 prosumer impact, last year we had close to €30 million of negative EBITDA from prosumers. This year, naturally, because the number of prosumers has increased, we would expect a somewhat higher negative impact from them.

Jonas Rimavičius: In terms of 2026 prosumer impact, last year, we had close to EUR 30 million of negative EBITDA from prosumers. This year, naturally, because number of prosumers has increased, we would expect somewhat higher negative impact from them. And in terms of going forward, as I mentioned before, we expect due to new legislation, around 60% to 70% of that negative amount to be covered.

Jonas Rimavicius: In terms of 2026 prosumer impact, last year, we had close to EUR 30 million of negative EBITDA from prosumers. This year, naturally, because number of prosumers has increased, we would expect somewhat higher negative impact from them. And in terms of going forward, as I mentioned before, we expect due to new legislation, around 60% to 70% of that negative amount to be covered.

Speaker #2: And in terms of going forward, as I mentioned before, we expect, due to new legislation, around 60% to 70% of that negative amount to be covered.

Speaker #3: We have no further questions. Thank you for joining today's call. Our Investor Relations team remains available for any follow-up questions. We look forward to speaking with you again next quarter.

Operator: We have no further questions. Thank you for joining today's call. Our investor relations team remains available for any follow-up questions. We look forward to speaking with you again next quarter. Have a great day.

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Q2 2026 AB Ignitis Grupe Earnings Call

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Ignitis Grupe

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