Helen’s half-year report 2026: Strong foundation for the first half of the year through customer growth and investment progress

The figures presented in this half-year report are for January–June 2026, unless otherwise stated. The comparison figures in brackets refer to the corresponding period of the previous year.

April–June 2026, IFRS

• Consolidated net sales increased compared with the corresponding period of the previous year and amounted to EUR 231 million (EUR 208 million).
• Operating profit remained at the previous year’s level and amounted to EUR 37 million (EUR 38 million).
• Electricity sales increased by 3% to 1,152 GWh (1,114 GWh).
• Electricity distribution in Helsinki decreased by 1% to 1,213 GWh (1,220 GWh).
• Heat sales decreased by 10% to 923 GWh (1,021 GWh).
• Cooling sales increased by 20% to 53 GWh (44 GWh).

January–June 2026, IFRS

• Consolidated net sales increased compared with the corresponding period of the previous year and amounted to EUR 914 million (EUR 638 million).
• Operating profit increased to EUR 141 million (EUR 122 million).
• Electricity sales increased by 8% to 3,136 GWh (2,891 GWh).
• Electricity distribution in Helsinki increased by 6% to 2,841 GWh (2,673 GWh).
• Heat sales increased by 12% to 3,610 GWh (3,235 GWh).
• Cooling sales increased by 1% to 81 GWh (80 GWh).

Consolidated key figures, IFRS

*Key figures have not been calculated, as the IFRS transition commenced on 1 January 2025 and the comparative period extends to 2024.

Financial performance in January–June

Helen’s net sales increased by 43% compared with the corresponding period of the previous year, driven by higher electricity market prices and growth in the customer base following the integration of Väre Ltd into the Group. Net sales amounted to EUR 914 million (EUR 638 million). The average spot price of electricity during the first quarter of the year was EUR 72 (39) per MWh, which is significantly higher than in the previous year. The impacts of electricity price fluctuations were mitigated through price hedging using derivatives, which helped smooth price volatility in both wholesale electricity sales and procurement.

Net sales from power generation increased compared with the previous year. Net sales from retail electricity sales increased significantly due to the integration of Väre Ltd into the Group and the resulting increase in the customer base, as well as the high market price of electricity at the beginning of the year. Net sales from district heating also increased significantly due to strong demand driven by the cold weather conditions early in the year. Net sales from electricity distribution increased slightly compared with the corresponding period of the previous year. At Group level, the presentation of net sales has been revised to comply with the requirements of IFRS 15.

The profitability of Helen’s businesses was affected in particular by weaker performance in the district heating business and higher emissions-related costs. During the first quarter, cold weather increased heating demand, while fuel and emission allowance costs also rose significantly. During the second quarter, warmer-than-normal weather reduced demand for heat, resulting in lower sales volumes. The profitability of power generation remained at the previous year’s level. Depreciation and amortisation amounted to EUR 64 million (EUR 52 million).

Changes in fair value included in items excluded from comparable operating profit had a positive impact of EUR 25 million on earnings. This was mainly attributable to changes in the fair value of derivative instruments outside the scope of hedge accounting, such as natural gas and emission allowance derivatives.

Comparable operating profit, excluding non-recurring items, amounted to EUR 139 million (EUR 141 million), and comparable relative profitability decreased to 15% (22%). Operating profit improved compared with the previous year and amounted to EUR 141 million (EUR 122 million). However, relative profitability declined to 15% (19%). Return on capital employed was 8.0% (comparative figure not applicable).

Comments by CEO Olli Sirkka

The first half of the year was a period of steady progress and disciplined execution for Helen. Net sales and operating profit increased, supported in particular by the integration of Väre Ltd into the Group and by electricity market prices that were higher than in the previous year. We demonstrated that district heating remains a reliable and stable heating solution even under the demanding weather conditions experienced at the beginning of the year. Although fuel costs driven by exceptionally cold weather and higher heating demand had a negative impact on earnings, overall profitability developed positively.

During the review period, we transitioned to IFRS reporting, representing a natural step in Helen’s development towards becoming an even stronger Nordic energy company. At the same time, we continued to make significant investments in low-emission energy production. This investment phase is reflected in a higher level of debt, but our financial indicators remain on a sustainable footing also under IFRS accounting principles.

The merger of Helen Ltd and Väre Ltd, completed in June, marked a new chapter in the Finnish retail electricity market. Following the transaction, Helen became the market leader in retail electricity sales, which enhances opportunities to realise economies of scale, develop innovative services for customers and capture the opportunities created by the energy transition. The integration has progressed as planned, and the first months have reinforced our view that developing a competitive retail business requires a broad customer base, as it entails substantial investments in areas such as the digital customer experience.

Another significant milestone relates to our new nuclear energy company. Helen Nuclear Ltd commenced operations at the turn of the year and has since strengthened the Group’s ability to evaluate the role of nuclear energy within the energy systems of Helsinki and Finland. The company’s first six months have focused on building the organisation, strengthening capabilities and assessing future options. We are increasingly convinced that the use of small-scale nuclear energy for heat production or combined heat and power generation represents the most effective way to ensure that the heat produced by nuclear energy can be fully utilised.

At the same time, our projects aimed at replacing fossil-based heat production continued to advance steadily. The heat pump plant nearing completion in Eiranranta and the electric boiler plant under construction in Hanasaari are key elements in achieving Helen’s updated climate targets. In May, these targets were validated by the Science Based Targets initiative. During the spring, all four electric boilers were delivered to the construction site of the Hanasaari plant, which will be the largest electric boiler facility in Europe. The progress of these projects provides a tangible demonstration of how the transformation of the energy system is being built step by step – or in this case, boiler by boiler.

During the review period, we also continued to develop the electricity network to meet the needs of a growing and increasingly electrified Helsinki. Helen Electricity Network Ltd made the largest single investment decision in its history by approving the construction of a 400 kV high-voltage transmission network in Helsinki. In addition, a new substation was completed in Kruununhaka, strengthening the security of supply in the city centre for decades to come. As society becomes increasingly electrified, the importance of flexible generation, demand response and energy storage continues to grow. Developing solutions in these areas will be a key driver of Helen’s competitiveness in the years ahead.

Significant events in April–June

• The electricity retail company Väre Ltd, which joined the Group at the turn of the year, was integrated into the parent company. Väre Ltd’s electricity contracts, microgeneration agreements and energy services were incorporated into the parent company’s service offering.
• Helen Electricity Network Ltd made an investment decision to construct a 400 kV high-voltage transmission network in Helsinki. The project will significantly increase the electricity transmission capacity of the Helsinki metropolitan area. It is the largest single investment in the history of Helen Electricity Network Ltd.
• The parent company published district heating energy charges for July–December 2026 and a price forecast for January–June 2027. District heating prices were reduced for the third consecutive year and are, on average, 2.3% lower than in the previous year.
• Helen updated its science-based climate targets and received validation from the Science Based Targets initiative (SBTi). In connection with the update, the company committed to achieving net zero emissions by 2040.
• Helen implemented changes to the structure and areas of responsibility of its Group Executive Management Team. Juha Keski-Karhu was appointed SVP, Customers and services, and member of the Group Executive Management Team following the departure of the previous head of the business function, Anu-Elina Hintsa, to new responsibilities outside the company. Pekka Tolonen, CEO of Helen Nuclear Ltd, also joined the Group Executive Management Team. Tuukka Hartikka was appointed VP, Power generation. Sari Mannonen, SVP, New business and hydrogen, left the company. The New business function was integrated into the Strategy and M&A function, while Hydrogen was incorporated into the Power generation function. The Sustainability and public affairs function was merged into the Communications and brand function, which was renamed Communications and sustainability. The function is headed by Susan Patronen.

Significant events after the review period

• The parent company entered into an agreement to sell its electric vehicle charging business to Plugit Finland Ltd. The transaction supports Helen’s strategic objective of achieving a combustion-free energy system, as the company focuses on the production and sale of electricity, heat and cooling, and on increasing the flexibility of the energy system.

Outlook

Geopolitical uncertainty and the resulting lack of predictability continue to have a significant impact on the outlook for energy markets. Developments in the Middle East and in the supply chains of the international LNG trade are key factors influencing energy production and price developments in Europe. Any further disruptions to oil and natural gas supplies could quickly drive up energy prices and increase market volatility.

In the Nordic countries, market stability is supported by growing renewable electricity generation and seasonally lower electricity demand during the summer period. However, the market remains highly sensitive to weather conditions, as the large share of wind and hydropower in the generation mix increases price volatility, particularly during periods of low wind. Uncertainty related to geopolitical risks, fuel price developments and the adequacy of energy storage levels ahead of the coming winter season may lead to significant changes in market conditions at short notice.

Helen operates in the electricity market in diverse roles as a producer, seller and consumer, which reduces the impacts of market fluctuations on the company. In addition, Helen seeks to take advantage of the opportunities provided by electricity price fluctuations in its business operations. By acting in line with its strategy, the company will increasingly be able to balance price volatility by increasing electricity consumption when supply is abundant and reducing consumption when supply is limited.

The profit outlook for 2026 is expected to weaken compared with the previous year. The decline in average electricity prices challenges the profitability of power generation, while the change in the cost structure of district heating has strengthened the long-term financial position of heat production. The increased customer base resulting from Helen’s acquisitions provides an opportunity to benefit from economies of scale. In an uncertain market environment, the company’s diversified business portfolio provides greater financial stability than a narrowly focused strategy.

Helen’s heat production is largely electrified and primarily consists of heat pumps, electric boilers and sustainable bioenergy. The long-term assessment work to replace combustion-based energy production with small-scale nuclear energy is progressing steadily. Low-emission electricity accounts for more than 90% of Helen’s power generation capacity, comprising hydropower, nuclear power, wind power and solar power. Hydrogen will emerge as a new addition to Helen’s production portfolio, and the prerequisites for large-scale production are being explored through a pilot plant.

It is important for Finland to maintain its position as a stable and predictable investment environment with sufficient availability of low-emission electricity also in the future. Helen’s long-term work to develop the flexibility and security of supply of the energy system supports this objective. Open and efficiently functioning electricity markets are the most effective way to ensure that investments are directed, at the right time, towards solutions that support the competitiveness and security of supply of the energy system. Renewable energy production, the development of small-scale nuclear energy, the piloting of hydrogen solutions and smart control solutions strengthen Finland’s energy infrastructure and improve its resilience.

Helen's interim report for January–September will be published on 29 October 2026.