Ignitis Group’s ambitious Strategic Plan 2025–2028: paving the way towards 100% green and secure energy ecosystem
- Investments: EUR 3.0–4.0 billion over the 2025–2028 period.
- 59% of the investments will be directed towards further development of the Green Capacities portfolio and 36% to the electricity distribution network.
- 3M 2025 results showed strong performance and strategic execution, marked by the launch of Kelmė wind farm I.
- The Group has announced that it will share around EUR 50 million with Lithuanian consumers because of additional profit earned from AB “Ignitis gamyba” activities in the Baltic states.
AB “Ignitis grupė” (Ignitis Group or Group), a renewables-focused integrated utility, is continuing to implement its strategy and invest in its Green Capacities and Networks business segments, thus strengthening the energy security and contributing to the surplus green energy production in the region.
The Group announced a Strategic Plan 2025–2028 with an emphasis on further investment growth, focused on development of green capacities as well as expansion and resilience of the distribution network.
“The Group is keeping a strong focus on the execution of its ambitious strategy, with a purpose to create a 100% green and secure energy ecosystem. With successful finish of the construction works of our new assets, we are significantly contributing to the decarbonisation and energy security in our region. We aim to create an abundant green energy ecosystem in the region, thereby creating a globally competitive price environment and increasing the region's investment attractiveness,” says Darius Maikštėnas, CEO of Ignitis Group.
In 2025–2028, the Group plans to invest EUR 3.0–4.0 billion with over 85–90% of the investments to be aligned with the EU Taxonomy. Around 59% of the investments (EUR 1.7–2.4 billion) will be directed to further development of Green Capacities. More than half of the Green Capacities investments over the 2025–2028 period relate to new installed green capacities additions after 2028.
The second largest portion of around 36% of investments (EUR 1.2–1.3 billion) will be directed towards the expansion and maintenance of a resilient and efficient electricity distribution network, which is one of key elements of a successful energy transition.
The Group is targeting to double the installed green capacities, reaching a total of 2.6–3.0 GW in 2028 compared to 1.4 GW in 2024. Currently, the Group’s Green Capacities portfolio amounts to 8.4 GW, 3.1 GW of it is secured capacity. The Group keeps its focus on the development of green generation and green flexibility technologies – onshore and offshore wind, batteries, pumped-storage hydro and power-to-x.
To enable the Green Capacities build-out, Ignitis Group is utilising and further expanding its customer base. The company is expanding its electricity supply portfolio in the countries it is active in, which should lead to a significant increase in the amount of electricity supplied by the Group, from 6.7 TWh in 2024 to 9.0–11.0 TWh by 2028. Also, the Group continues to build a leading EV fast-charging network, being the first-choice provider of charging solutions in the Baltics for home and business customers.
Ignitis Group is maximising sustainable value by directing its investments toward a decarbonisation pathway that is aligned with business ambitions and reaching net zero emissions by 2040–2050. The Group’s sustainability-related priority is reducing the carbon intensity of scope 1 & 2 GHG emissions (to 190 g CO2-eq/kWh in 2028 or reducing by 5% vs. 2024) by growing installed green capacities and increasing the share of green electricity used for operations.
According to its strategic plan, the Group’s investments should translate into EUR 600–680 million of the Group’s adjusted EBITDA in 2028, up from EUR 527.9 million in 2024. The Group aims to achieve a sustainable share of Adjusted EBITDA of at least 70–75% by 2028. The average Adjusted ROCE is expected to be within 6.5–7.5% over 2025–2028. The Group targets to maintain its credit rating of ‘BBB’ and above over the 2025–2028 period, supported by disciplined financial management.
In line with its Dividend Policy, Ignitis Group is committed to a minimum of 3% annual dividend growth, implying a 6.4%–7.0% dividend yield for the 2025–2028 period.
In 3M 2025, Ignitis Group reported strong performance and strategic plan execution marked by the launch of Kelmė wind farm I
Ignitis Group published its First three months 2025 interim report and announced that its adjusted EBITDA amounted to EUR 188.5 million (+3.7% YoY). The growth was driven by the stronger performance of the two largest segments: Green Capacities and Networks.
The Green Capacities segment remains the largest contributor with a 58.0% share of the total adjusted EBITDA. The Group completed the construction of Kelmė wind farm I (114.1 MW) in Lithuania, achieving commercial operation in April. The Group also made a significant progress on the largest solar portfolio under construction in the Baltics, which includes Stelpe SF (145 MW), Varme SF (94 MW), and Tume SF (174 MW) in Latvia.
The total Group’s Green Capacities portfolio increased to 8.4 GW (from 8.0 GW), secured capacity stands at 3.1 GW, installed capacity at 1.4 GW.
The Networks segment's adjusted EBITDA rose by EUR 8.6 million due to a higher regulated asset base (RAB), driven by ongoing investments in the distribution network, and an increased WACC set by the regulator. Also, 3.5 EURb (+40%) Investments set in the 10-year (2024–2033) Investment Plan was aligned with the regulator (NERC). Finally, installed smart meters exceeded 1.1 million.
The Customers & Solutions segment saw a EUR 31.6 million decrease in adjusted EBITDA, driven by lower natural gas supply margins. The lower electricity supply result was driven by higher loss effect (EUR -6.2 million) of prosumers under the current net-metering scheme. Meanwhile, the Group successfully expanded the EV charging network, with 1,286 EV charging points (+195 since 31 December 2024) now installed across the Baltics.
In the Reserve Capacities segment, the Group has won a Polish auction. It will provide services for ensuring 381 MW capacity availability in the market during the first quarter of 2026 and 484 MW during the fourth quarter of 2026. The segment's result slightly decreased due to lower captured gross profit margin in relation to lower captured electricity prices and higher natural gas prices.
In the first quarter of 2025, the Group's investments amounted to EUR 146.5 million and were 30.1% lower than last year as projects reached COD or are nearing completion. Nearly half of all investments were allocated to the Green Capacities segment, primarily for new solar and onshore wind farms. Country-wise, EUR 112.2 million (76.6% of the total investments) were directed to Lithuania.
The Group has also announced that from 2025, it will share with Lithuanian consumers the additional profit earned in the Baltics from the new manual frequency restoration reserve services whose market was launched this year provided by Kruonis PSHP and Kaunas HPP and the isolated system operation services provided by Elektrėnai Complex. Currently, the amount to be shared by reducing the regulated electricity tariff amounts to around EUR 50 million.
The Group reiterates it’s full-year 2025 adjusted EBITDA guidance of EUR 500–540 million and investments guidance of EUR 700–900 million.
Key financial indicators (APM1)
| EUR, millions | 3M 2025 | 3M 2024 | Change |
| Adjusted EBITDA | 188.5 | 181.7 | 3.7% |
| Green Capacities | 109.3 | 77.1 | 41.8% |
| Networks | 74.1 | 65.5 | 13.1% |
| Reserve Capacities | 17.4 | 20.0 | (13.0%) |
| Customers & Solutions | (14.2) | 17.4 | n/a |
| Other activities and eliminations2 | 1.9 | 1.7 | 11.8% |
| Adjusted EBITDA margin | 23.5% | 28.1% | (4.6 pp) |
| EBITDA | 160.1 | 188.9 | (15.2%) |
| Adjusted EBIT | 138.4 | 140.3 | (1.4%) |
| Operating profit (EBIT) | 110.0 | 147.5 | (25.4%) |
| Adjusted net profit | 107.8 | 112.6 | (4.3%) |
| Net profit | 83.9 | 118.7 | (29.3%) |
| Investments | 146.5 | 209.5 | (30.1%) |
| Green Capacities | 71.4 | 138.9 | (48.6%) |
| Networks | 65.5 | 63.7 | 2.8% |
| Reserve Capacities | 0.5 | 0.2 | 150.0% |
| Customers & Solutions | 5.2 | 2.6 | 100.0% |
| Other activities and eliminations2 | 3.9 | 4.1 | (4.9%) |
| FFO | 149.2 | 169.5 | (12.0%) |
| FCF | 16.7 | 5.0 | 234.0% |
| Adjusted ROE LTM | 11.3% | 14.2% | (2.9 pp) |
| ROE LTM | 10.0% | 14.2% | (4.2 pp) |
| Adjusted ROCE LTM | 8.9% | 11.1% | (2.2 pp) |
| ROCE LTM | 8.1% | 10.7% | (2.6 pp) |
| EPS | 1.16 | 1.64 | (29.3%) |
31 Mar2025 | 31 Dec 2024 | Change | |
| Net debt | 1,593.3 | 1,612.3 | (1.2%) |
| Net working capital | 97.5 | 102.6 | (5.0%) |
| Net debt/Adjusted EBITDA LTM, times | 2.98 | 3.05 | (2.3%) |
| FFO LTM/Net debt | 28.8% | 29.7% | (0.9 pp) |
1 All, except ‘Net profit’, are Alternative Performance Measures (APMs). Definitions and formulas of the financial indicators are available onour website.
2 ‘Other activities and eliminations’ includes consolidation adjustments,related-party transactions and financial results of the parent company.
Earnings call
In relation to the announcement of the First three months 2025 interim report and Strategic Plan 2025–2028, an earnings call for investors and analysts will be held on Wednesday, 14 May 2025, at 1:00 pm Vilnius / 11:00 am London time.
To join the earnings call, please register at:
https://edge.media-server.com/mmc/go/Ignitis3M2025resultsandStrategicPlan2025-2028
It will be also possible to join the earnings call by phone. To access the dial-in details, please register here. After completing the registration, you will receive dial-in details on screen and via email. You will be able to dial in using the provided numbers and a unique pin or by selecting ‘Call me’ option and providing your phone details for the system to connect you automatically as the earnings call starts.
All questions of interest can be directed to the Group’s Investor Relations team in advance, after registration or live during the earnings call.
Presentation slides will be available for download prior the call at:
https://ignitisgrupe.lt/en/reports-presentations-and-fact-sheets
The First three months 2025 interim report, fact sheet (in Excel) and other published documents will be available for download at:
https://ignitisgrupe.lt/en/reports-presentations-and-fact-sheets
Strategic Plan 2025–2028 will be available for download at:
https://ignitisgrupe.lt/en/about-us/strategy
