Hidroelectrica SA: Off The 1Q26 Call

Research evidence excerpt

Hidroelectrica SA: Off The 1Q26 Call

Update

May 18, 2026 03:27 PM GMT

Morgan Stanley & Co. International plc+MHidroelectrica SA | Europe Ricardo Rezende, CFA

Equity Analyst

Off The 1Q26 Call Ricardo.Rezende@morganstanley.comGiulia Faro +44 20 7677-9886

Research Associate

Giulia.Faro@morganstanley.com +44 20 7425-7581

Bottom line: mixed. Management sounded constructive on the strategic shift

Sylvia C Richards

toward a larger supply business and broader RES/storage portfolio. The earnings Research Associate

profile should gradually become less hydro-dependent, but volatility remains high Sylvia.Richards@morganstanley.com +44 20 7677-3354

until new RES capacity and supply growth become more material. Hidroelectrica is Hidroelectrica SA (ROH2O.BX, H2O RO)

becoming more aggressive in supply and intends to use its integrated production Utilities | Romania

base to manage volatility and capture market opportunities. However, management Stock Rating Underweight

Industry View Attractive

repeatedly stressed that forecasting remains challenging, especially for hydro

Price target RON 100.00

volumes and power prices, and that regulatory constraints are affecting execution. Shr price, close (May 15, 2026) RON 183.40

52-Week Range -

Supply growth. Management indicated that supply remains a key growth area, with Mkt cap, curr (mn) RON 82,494

Net debt (12/25e) (mn)* RON (1,069)

the 2026 budget now at 9.6TWh and a potential market share target around 20%, EV, curr (mn)* RON 81,292

but stressed this depends on market conditions and strategy updates. * = GAAP or approximated based on GAAP

Volume visibility. On Danube flows, management noted that 2026 looks broadly

normal so far but hydro visibility is weak beyond roughly three months.

Regulation and execution constraints.