Gore Street Energy Storage Fund: Revenue pressures persist

Research evidence excerpt

Gore Street Energy Storage Fund: Revenue pressures persist

Equity Research

European Investment Companies

15 July 2026

Gore Street Energy Storage Fund

Revenue pressures persist

First LookGore Street Energy Storage Fund remains challenged by

falling revenues and weaker power market dynamics, driving

a -24% NAV return. While the shares trade at a 39% discount, GSF.L/GSF LN EQUAL WEIGHT European Investment

Companieslimited scale and weak cash generation constrain upside. We NEUTRAL

Price Target GBp 62

maintain EW. Price (14-Jul-26) GBp 49

Potential Upside/Downside +25.8%

Source: Bloomberg, Barclays Research

Texas and GB drive YoY revenue/MW/hr decline:Portfolio revenue and operational EBITDA (pre

fund-level costs) for FY2026 were £36.3m and £18.0m respectively (FY25: £32.8m and £18.5m).

The revenue increase was due to a 44% increase in average operational capacity to 566MW over European Investment Companies

the period which has been partially offset by weak revenues in Texas and GB. Average Conor Finn, CFA

revenue/MW/hr has fallen 23% to £7.32 (FY25: £9.56), reflecting market saturation and lower +44 (0)20 7116 6066

power price spreads in particularly ERCOT (-55% YoY) and a weaker performance in GB (see conor.finn@barclays.com

Barclays, UKFigure 1). Fund earnings during the period totalled £6.0m (FY25: £9.8m excluding one-offs),

equivalent to FCFe/ share of 1.2p per share. FY26 numbers reflect only partial income for the Big

Rock asset in California which became operational during the period.

-24% NAV TR driven by lower revenue curves and higher opex assumptions: NAV per share

at 31 March 2026 declined to 74.9p per share (March 2025: 102.8p), reflecting a -24% NAV total

return for the year. Movement was primarily driven by three factors - 1) a reduction in forward