EDF reports lower earnings after fresh Hinkley Point impairment
By Josh White
Date: Friday 20 Feb 2026
(Sharecast News) - Électricité de France reported lower earnings for 2025 on Friday, after weaker power prices and a fresh impairment on its UK Hinkley Point C project, but said strong nuclear output and disciplined cash generation helped cut debt and support investment plans.
In its annual results, EDF said EBITDA fell 19% to €29.3bn from €36.5bn in 2024, while group net income declined 26% to €8.4bn.
Sales slipped to €113.3bn.
The drop in profit reflected lower realised electricity prices and a €2.5bn impairment on Hinkley Point C, as well as adverse movements in financial instruments and commodities.
Net financial debt fell by €2.9bn to €51.5bn, bringing the net debt-to-EBITDA ratio to 1.8 times.
Operating cash flow was €9.6bn and overall cash flow reached €2.9bn.
S&P upgraded EDF's credit rating to BBB+ with a stable outlook in January, and the board said it would propose a €1bn dividend for 2025.
Operationally, EDF generated 515 terawatt-hours of electricity in 2025, including 373TWh of nuclear output in France, the highest level in six years.
Decarbonised output reached 488TWh, according to a Quartr transcript of the company's earnings call.
"2025 was a year of sound operational and financial results," said chairman and chief executive Bernard Fontana.
"These results reflect all the action taken to raise operational performance sustainably, with nuclear output up, record levels of pumped-storage hydropower, and faster deployment of our new commercial policy."
However, EDF pushed back the start-up of Hinkley Point C's first reactor to 2030, citing delays in electromechanical work.
The group booked a €2.5bn impairment on the project.
Bloomberg reported that the writedown, combined with lower electricity prices, drove the decline in earnings, while the Financial Times said the latest delay increased the estimated cost of the Somerset plant to £35bn in 2015 prices, or almost £49bn in today's money.
EDF warned that a further delay to 2031 would add another £1bn.
Fontana described the revised timeline as "more reasonable", according to the FT.
Despite the setback, EDF highlighted progress at Hinkley Point, including delivery of the Unit 2 reactor vessel, and confirmed the final investment decision and financial close of the Sizewell C project in the UK.
The group received a £1.6bn payment from Sizewell C for project expertise and replication benefits.
It reiterated that French nuclear output was expected to be between 350TWh and 370TWh in 2026 and 2027.
In the UK, EBITDA fell to €2.3bn from €3.5bn, reflecting lower nuclear output and weaker market prices.
This Is Money reported that UK EBITDA declined by around a third to £1.9bn, with output affected by extended outages, notably at Hartlepool.
EDF said it invested more than £5bn in Britain in 2025 and planned to invest a further £15bn across its UK nuclear and renewables businesses.
By segment, EBITDA from France's generation and supply activities dropped 30% to €14.6bn as lower forward prices and reduced hydropower output offset higher nuclear volumes.
Regulated activities in France saw EBITDA rise 35% to €7.5bn, supported by tariff changes and lower energy purchase costs for network losses.
EDF Power Solutions' EBITDA declined 36% to €1.4bn, while Dalkia and industry and services businesses posted gains.
Looking ahead, EDF said 2026 EBITDA was expected to "retreat slightly" in a context of falling market prices.
The group confirmed its 2027 leverage targets of net financial debt to EBITDA of 2.5 times or below and adjusted economic debt to adjusted EBITDA of 4 times or below.
Fontana said EDF saw "significant investment - targeted ones abroad - alongside asset rotations, notably in renewables," according to Bloomberg, as the state-backed utility prepares to expand its nuclear fleet in France and pursue selected projects overseas while maintaining financial discipline.
Reporting by Josh White for Sharecast.com.
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