Verbund: 1Q26 results beat results in raise of lower end of FY26 guidance

Research evidence excerpt

Verbund: 1Q26 results beat results in raise of lower end of FY26 guidance

Barclays | Verbund

pumped storage, renewables and thermal power plants are valued using capacity multiples in line with typical sector valuations for such assets. We

value Verbund's regulated Austrian electricity transmission network using a multiples-based valuation approach in line with regulated peers (10.0x

2026E EV/EBITDA), reflecting the higher value for these regulated assets.

Risks which May Impede the Achievement of the Barclays Research Valuation and Price Target: The main downside risk is that there are future

windfall taxes for Austrian utilities, which extend beyond 2024 (there are currently no such plans). Other upside or downside risks to our price target

include higher- or lower-than-expected long-term realised power prices (especially in Germany) and lower-than-expected annual load factors for its

Austrian run-of-the-river plants. It is worth noting that, given the significant variation in hydro output levels, Verbund does not forward sell its

generation output to the same extent as other utility peers. Generally, it will only forward sell 60% of its generation output one year in advance, with

20% being forward sold one quarter ahead and the remaining 20% being sold at spot prices. As a result of this forward selling mechanism Verbund is

exposed to changes in power prices considerably earlier than most of its peers.

Disclaimer:

This publication has been produced by Barclays Research Department in the Investment Bank of Barclays Bank PLC and/or one or more of its affiliates

(collectively and each individually, "Barclays").

It has been prepared for institutional investors and not for retail investors. It has been distributed by one or more Barclays affiliated legal entities listed