Earnings call transcript: Romande Energie lifts H1 2026 profit as stock rises

Romande Energie reported a significant improvement in its first-half 2026 financial results, with EBITDA rising 38% to CHF 98 million and EBIT doubling to CHF 46 million. The company's net income increased 19% to CHF 47 million, while operating revenues grew 5% to CHF 407 million. The stock price rose 3.13% to $49.4, near the top of its 52-week range, indicating investor confidence in the company's stronger operating trend and long-term growth plan.

The improved results came from stronger margins in its energy and markets units, as weaker hydroelectric conditions were offset by better contributions from these business segments. Management expects H2 results to be more moderate due to seasonality, but the company remains confident in its full-year and beyond growth prospects.

Romande Energie continued to expand its renewable energy portfolio and infrastructure, adding wind assets in France, solar projects in Switzerland, and enhancing district heating and cooling systems. This diversification helped mitigate the impact of drought on hydroelectric production. The company's capital expenditure decreased slightly to CHF 83 million, while electricity generation increased by 6% despite low rainfall.

The earnings improvement indicates a robust business rather than a one-off gain, as the company highlighted EBITDA rising 38% and net income increasing 19% year-over-year. The strong cash flow from operations of CHF 109 million suggests the earnings quality is solid, not just accounting-driven. The stock's price-to-book ratio of 0.58 suggests the shares are trading at a discount to book value.