Negative Points

• Green generation earnings declined to EUR302 million from EUR420 million, impacted by weak hydro conditions in Germany and the Nordic region, and an unforeseen outage at Oskarshamn 3.

• The prolonged outage at Oskarshamn 3 and additional standstills at minority-owned plants resulted in a mid-double-digit million EBITDA loss.

• Flexible generation adjusted EBITDA fell to EUR286 million from EUR333 million, due to lower generation volumes, weaker UK power spreads, and the disposal of Datteln 4.

• The company faces ongoing drought conditions in Germany and Sweden, which are expected to continue impacting generation volumes into Q3 2026.

• Operating cash flow is expected to normalize in H2 2026, with full-year cash conversion projected below 100% due to gas storage refilling and seasonal working capital increases.

• Economic net cash is expected to decline from the exceptionally high H1 level by year-end, as investments and working capital requirements increase.

• The company's earnings profile remains front-loaded, with H2 2026 expected to be weaker, reflecting seasonal and market factors.

• The re-privatization process remains uncertain, with the government pursuing both private sale and IPO options, creating potential overhang.

• Interest income on cash balances declined due to lower market interest rates, impacting the economic interest result.

• The company's cost savings program is still in progress, with annual savings of EUR100 million only expected from 2027 onwards.

Q & A Highlights

Q: How many gigawatts does Uniper intend to bid into the upcoming German CCGT (StromVKG) tenders, and has the supply chain for the turbines been secured? A: Michael Lewis (CEO) confirmed Uniper will bid 1.7 gigawatts into the auctions, comprising two projects: Scholven in Nordrhein-Westfalen and Staudinger in Hessen. He stated that the company has a strategic relationship with Siemens Energy and has already secured the relevant plant and equipment, including locked-in prices, positioning Uniper competitively for the September 8 auction.

Q: Can you provide any factual updates on the German government's reprivatization process for Uniper, specifically regarding a private sale versus an IPO? A: Michael Lewis (CEO) reiterated the government's official stance, noting they are pursuing two options: a private sale and a potential IPO. He directed any further questions on the process to the German government, declining to speculate on the timeline or potential buyers.

Q: Given the poor hydro conditions across Europe, is it correct that your integrated conventional generation operations are able to offset this weakness, and are there risks of further outages at Oskarshamn 3? A: Christian Barr (CFO) confirmed that the severe hydro conditions in Germany and Sweden are expected to continue into Q3 and are fully incorporated into the company's guidance. Michael Lewis (CEO) added that Oskarshamn 3 has returned to normal operations in July after an extended outage, and no further challenges are expected this year.

Q: You raised the bottom of your 2026 guidance to EUR1.1-1.3 billion EBITDA despite posting EUR711 million in H1. Why does the implied H2 outlook appear cautious? A: Christian Barr (CFO) explained that the guidance reflects the expectation that drought conditions in Germany and Sweden will persist at least through Q3, impacting generation volumes. He emphasized that the financial impact of lower hydro generation has been analyzed and incorporated into the internal forecast, with conditions potentially normalizing later in the year.

Q: Can you provide more details on the three advanced data center projects, including location, capacity, and timing, and could these lead to an increase in the EUR5 billion CapEx envelope? A: Michael Lewis (CEO) stated that two projects are in the UK and one in Germany, but declined to provide further specifics due to ongoing commercial discussions. He noted that business models vary by site (infrastructure provision, land sale, or lease) and expects to announce concrete progress within the next 18 months, which could potentially influence future CapEx plans.

Q: Could you quantify the earnings impact of the unplanned outage at the Oskarshamn 3 nuclear power plant? A: Christian Barr (CFO) quantified the impact, stating that the prolonged maintenance outage at Oskarshamn 3, along with additional standstills at minority-owned plants, resulted in a mid-double-digit million euro reduction in EBITDA.

Q: What elements of the exceptionally strong H1 operating cash flow (EUR2 billion) are expected to reverse in H2, and what is the expected year-end cash position? A: Christian Barr (CFO) explained that the high cash flow was driven by lower gas storage levels (around EUR500 million) and reduced receivables (EUR400-500 million). These effects are expected to unwind in H2 as storage is refilled and receivables increase seasonally, leading to a full-year cash conversion rate slightly below 1x EBITDA.

Q: How is Uniper positioned to benefit from the growing data center demand, and what is the value creation strategy? A: Michael Lewis (CEO) highlighted that Uniper has identified more than 10 brownfield sites with existing infrastructure and grid connections in attractive European locations. The strategy involves offering hyperscalers an integrated proposition, with value creation starting from site development (land sales or leases) and potential future upside through long-term power purchase agreements, with three sites already in advanced development stages.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .