BKW AG: Another dry year

Research evidence excerpt

BKW AG: Another dry year

Global Research

1 July 2026ab

BKW AG Equities

SwitzerlandAnother dry year

Electric Utilities

12-month rating Neutral

Trending toward lower end of guidance range

We cut our EBIT estimates for FY26-28 by around 2% on average, mostly driven by 12m price target CHF145.00

FY26. For the Infrastructure and Buildings division we continue to expect solid growth Prior : CHF160.00

rates, both on top line and further progress on margin improvements. However, we

Price (30 Jun 2026) CHF135.90

push out the large part of the improvement into FY27. Also, we pencil in higher cost for

cyber security investments, and cut our expected regulated WACC for the Grid division RIC: BKWB.S BBG: BKW SW

from 3.43 to 3.28% in FY27. The biggest impact however stems from negative

Trading data and key metrics

indications for the energy Solutions division, amid a negative cross read on trading

52-wk range CHF184.20-135.40

profits, and another year of muted hydro electricity production so far. Overall, we now

expect FY26 EBIT to come in at the lower end of the FY guidance of CHF650m-750m, Market cap. CHF7.17b/US$8.86b

pencilling in CHF678m from prev. 704. Our PT comes down to CHF145 from prev. 160. Shares o/s 52.8m (ORD)

Free float 37%

Low hydro electricity changing the EBIT bridge Avg. daily volume ('000) 62.7

As we see continued low levels of hydro electricity production and a negative cross read Avg. daily value (m) CHF9.3

for the company's trading profits, we expect the Energy Solutions EBIT to be down by Common s/h equity (12/26E) CHF5.70b

4% (adjusted for last year's impairment). Management had noted earlier this year, that a P/BV (12/26E) 1.3x

normalisation of the load factors for hydro electricity would add around CHF40m to EBIT Net debt to EBITDA (12/26E) 0.9x