Voltalia shares sink 16% after 2026 capacity target cut overshadows Q2 growth

Voltalia's shares plummeted 16% on Thursday, marking the company's steepest one-day decline in months. The French renewable energy group had reduced its 2026 capacity target, overshadowing a 35% increase in second-quarter revenue driven by one-off compensation payments in Brazil. Voltalia announced it was reviewing the timing of construction launches for certain projects, cutting its 2026 total capacity target to around 3.6 gigawatts from the previously estimated 3.7 gigawatts.

The company attributed the changes to a stronger commitment to operational and financial discipline as part of its SPRING restructuring plan. Despite the cut in capacity target, Voltalia reaffirmed its full-year financial guidance, projecting EBITDA between €210 million and €230 million and expecting a positive net result. The quarterly turnover rose 35% at constant exchange rates to €198 million and 38% at current rates, propelled by new solar and wind capacity commissioned in South Africa and Uzbekistan.

However, €17 million of the revenue increase was attributed to one-off compensation from historic production curtailment in Brazil. Excluding the Brazil compensation, Energy Sales turnover growth would have been approximately 25% instead of 40%. The company also highlighted ongoing operational challenges in Brazil, the group's largest market by capacity, with wind load factor down 8 percentage points year-on-year and curtailment still accounting for 14% of Brazilian production.

In French Guiana, the Cacao biomass plant, which had been offline since a 2025 incident, only slowly recovered production in May. Voltalia's Chief Executive, Robert Klein, stated that the second quarter of 2026 demonstrated momentum since the start of the year, with turnover surging, and half-year production slightly up, nearing 3 gigawatts.

He also deemed the Brazilian compensation as a significant advancement for the Group, confirming the €29 million EBITDA benefit from this compensation, which was already included in the guidance. Lastly, the European Bank for Reconstruction and Development fully exited its shareholding, while investment firm VMO Invest surpassed the 5% ownership threshold on May 6, holding 5.007% of the share capital.