Helen’s interim report January–March 2026: Good financial performance – district heating demonstrated high supply reliability in challenging weather conditions
January–March 2026
- Consolidated net sales increased compared with the corresponding period of the previous year and amounted to EUR 874 million (EUR 528 million).
- Operating profit increased to EUR 92 million (EUR 84 million).
- Electricity sales increased by 12% to 1,984 GWh (1,777 GWh).
- Electricity distribution in Helsinki increased by 12% to 1,630 GWh (1,453 GWh).
- Heat sales increased by 21% to 2,687 GWh (2,214 GWh).
- Cooling sales decreased by 24% to 28 GWh (37 GWh).
Consolidated key figures
| EUR million unless otherwise noted | Q1/2026 | Q1/2025 | Change | 2025 |
|---|---|---|---|---|
| Net sales | 874 | 528 | 66% | 1,373 |
| Operating profit before depreciations (EBITDA) | 135 | 118 | 14% | 340 |
| Operating profit (EBIT) | 92 | 84 | 10% | 193 |
| % of net sales | 10% | 16% | -38% | 14% |
| Profit before taxes | 87 | 80 | 9% | 167 |
| % of net sales | 10% | 15% | -33% | 12% |
| Gross capital expenditure | 63 | 70 | -10% | 424 |
| Cash flow from operating activities | 275 | 197 | 40% | 358 |
| Net debt* | 1,078 | 1,038 | 4% | 1,309 |
| Net debt/EBITDA LTM* | 3.1 | 3.3 | -6% | 3.9 |
| Gearing, %* | 39% | 40% | -3% | 50% |
| Equity ratio, % | 56% | 59% | -5% | 56% |
| Return on capital employed (ROCE) LTM, %* | 5% | 5% | 0% | 5% |
| Balance sheet total | 4,912 | 4,438 | 11% | 4,699 |
| Personnel, average | 681 | 701 | -3% | 706 |
*Without leasing liabilities
Financial performance in January–March
Helen’s net sales increased by 66% compared with the corresponding period of the previous year due to the increase in the market price of electricity and the growth in the customer base following the inclusion of Väre Ltd in the Group. Net sales amounted to EUR 874 million (EUR 528 million). The average spot price of electricity during the first quarter of the year was EUR 93 (EUR 49) per MWh, which is significantly higher than the average price in the corresponding period of the previous year. The impacts of electricity price fluctuations were anticipated through price hedging using derivatives, which smoothed price volatility in both wholesale electricity sales and purchases.
Net sales from power generation were lower than in the corresponding period of the previous year. Net sales from electricity retail increased significantly due to the high market price of electricity. In addition, electricity retail net sales were boosted by the inclusion of Väre Ltd in the Group, as a result of which the number of Helen’s retail customers increased significantly. District heating net sales also increased significantly due to strong demand caused by the cold weather at the beginning of the year. Net sales from electricity distribution increased slightly compared with the corresponding period of the previous year.
A key factor affecting the profitability of Helen’s operations was the significant drop in the profitability of district heating and the increase in emissions. Missing production had to be compensated for through expensive purchases. The company’s profitability was also weakened by the higher use of emission allowances compared with the corresponding period of the previous year. The profitability of power generation remained good and in line with the previous year. Wind power generation was lower than in the previous year due to low wind conditions in January–February and blade icing at wind turbines. Depreciation amounted to EUR 43 million (EUR 34 million).
Operating profit improved compared with the previous year and amounted to EUR 92 million (EUR 84 million). However, relative profitability weakened compared with the corresponding period of the previous year and amounted to 11% (16%). Return on capital employed remained unchanged from the previous year at 5% (5%).
Comments by CEO Olli Sirkka
Helen’s nuclear energy project advanced at the beginning of the year with the establishment of the Group’s new subsidiary, Helen Ydinvoima Ltd. The European energy policy environment has changed rapidly in recent months, and geopolitical tensions have highlighted the risks related to dependence on natural gas. As a result, discussion on the role of nuclear energy in supporting Europe’s competitiveness has increased, and in Finland the role of nuclear power is also being examined more openly. A nuclear energy review prepared by the consulting company AFRY for the Ministry of Economic Affairs and Employment recommends focusing in particular on solutions that produce heat or combined heat and power instead of traditional nuclear power plants. These types of solutions are currently under review by Helen Ydinvoima Ltd.
The beginning of the year was colder than usual and characterised by low wind conditions, which had a clear impact on the result of energy production and sales. High electricity prices combined with increased heat production costs weakened the profitability of district heating, and the use of natural gas and oil was required to complement production. This led to an increase in greenhouse gas emissions during the early part of the year. In electricity retail, the cold weather resulted in consumption exceeding forecasts, which weakened result development as electricity exceeding the forecast had to be procured from the day-ahead market at a higher price. Part of the cost pressure was, however, mitigated by higher market prices in power generation.
Despite the higher costs, district heating continued to demonstrate its reliability as a heating solution also in demanding operating conditions. Small-scale nuclear energy planned for heat production would further strengthen the reliability of the district heating system and support the transition away from combustion-based energy production. In addition, the flexibility between business units, in line with our strategy, functioned at a reasonable level overall, and the steering of production and consumption supported maintaining balance in the energy system. The systematic development of flexibility remains a key part of our strategic objective to build Helen into a company that performs well in all operating conditions.
The integration of Väre Ltd, which joined the Group at the turn of the year, is progressing according to plan. A key focus for the current year is to ensure that new operating models and organisational structures function seamlessly together and create a solid foundation for long-term, profitable growth across all business units. Economies of scale and efficient operations strengthen our ability to serve customers and support them in a changing energy market.
The international situation has been tense in recent weeks, and the role of the Strait of Hormuz as a global energy transport route has received increased attention. We are closely monitoring developments and assessing their potential impacts on Helen. In the short term, our position remains stable due to a diversified production structure based on hydropower, nuclear power, wind power and solar power. As a result, fluctuations in oil and gas prices are not immediately reflected in our energy production. Finland’s production structure has changed significantly in recent years, which has also reduced the country’s dependence on fossil fuels. If geopolitical uncertainty persists, challenges faced by gas-dependent countries may also have broader impacts, including in Finland. We are preparing for this proactively as part of our risk management.
Significant events in January–March
- Helen established a separate company for the development of its nuclear energy project. The wholly owned subsidiary, Helen Ydinvoima Ltd, is tasked with assessing the conditions for constructing nuclear energy in Helsinki and preparing the project for an investment decision.
- The parent company commissioned a new electricity storage facility located in connection with the Lohja solar farm. The storage facility has a maximum output of 5 MW and an energy capacity of 10 MWh.
- The parent company entered into a new heat trading agreement with Fortum Corporation, enabling the transfer of heat between Helsinki and Espoo. The renewed heat transfer station has a transfer capacity of 50 MW, enabling the transfer of approximately 400 GWh of heat annually.
- Change negotiations were conducted at Helen with the aim of responding to the requirements of the changing business environment through Group reorganisation, the development of operating models and the reduction of overlapping functions. As part of the process, planning was initiated regarding the integration of the subsidiary Väre Ltd into the parent company.
- Helen adopted accounting policies in accordance with IFRS 16 Leases and IFRS 9 Financial Instruments in its financial reporting. The transition date for the adoption of the standards was 1 January 2025. The interim report for January–March 2026 has been prepared in accordance with these standards.
Outlook
Geopolitical uncertainty continues to weigh on the near-term outlook for energy markets. The continuation of the war in Ukraine and the ongoing crisis in the Middle East maintain uncertainties related to the prices and availability of fossil fuels. This is reflected in increased electricity price volatility in Europe, which, through transmission interconnections, also affects the Nordic markets.
In the Nordic countries, the normalisation of weather conditions as spring and summer progress may curb upward pressure on market prices in the short term, particularly if the hydrological balance improves and wind power production increases. However, the weak starting level of the hydrological situation makes the market sensitive to further weather deviations. Combined with elevated fuel prices, this may lead to price spikes during periods of low wind, even if the average price level remains lower than at the beginning of the year.
Helen operates in the electricity market in diverse roles as a producer, seller and consumer, which reduces the impacts of market volatility 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 and electric boilers, complemented by 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. Green 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. Renewable energy production, the development of small-scale nuclear energy, piloting hydrogen solutions and smart control solutions strengthen Finland’s energy infrastructure and improve its resilience.
Helen's half-year report will be published on 28 July 2026.