Orsted reported strong Q1 2026 financial performance driven by higher offshore wind generation, large-scale construction activity, and improving renewable energy output across Europe, the US, and Asia-Pacific. Revenue increased 33 percent to DKK 27.6 billion from DKK 20.7 billion in Q1 2025, supported by higher power prices, stronger wind speeds, and increased activity on offshore construction contracts.
EBITDA rose 8 percent to DKK 9.5 billion, while EBITDA excluding new partnerships and cancellation fees increased 11 percent. Offshore wind remained the largest earnings contributor with EBITDA of DKK 7.5 billion, up 20 percent year-on-year.
Rasmus Errboe, Group President and CEO of Orsted, said: “During the first quarter of 2026, we produced more renewable energy than ever before, delivering secure, affordable, and green power to millions of households and businesses.”
Orsted maintained its 2026 guidance, forecasting EBITDA excluding new partnerships and cancellation fees above DKK 28 billion. Gross investments are expected to range between DKK 50 billion and DKK 55 billion in 2026, reflecting the company’s aggressive offshore wind expansion strategy.
The company is prioritizing offshore wind investments in Europe and selected Asia-Pacific markets while strengthening its capital structure following the completion of a rights issue and multiple divestment transactions. Orsted recently closed the divestment of its European onshore business and expects to complete the sale of a 55 percent stake in Greater Changhua 2 during Q3 2026.
Offshore wind operations generated 6.9 TWh during Q1 2026, a 27 percent increase compared to Q1 2025, driven by higher wind speeds and ramp-up generation at Borkum Riffgrund 3 in Germany and Greater Changhua 4 in Taiwan. Offshore revenue climbed 45 percent to DKK 21.3 billion.
Major offshore construction milestones included first power generation from Revolution Wind in the US, first turbine installation at Sunrise Wind, monopile installation at Baltica 2 in Poland, and offshore converter station installation at Hornsea 3 in the UK. Orsted said its offshore construction portfolio totals 8.1 GW globally.
The Onshore division generated 4.4 TWh of power, up 3 percent, mainly due to commissioning of Badger Wind in the US and Bahren West 1 in Germany. Revenue rose 5 percent to DKK 886 million, while EBITDA declined 8 percent to DKK 1.37 billion.
Bioenergy & Other revenue increased 3 percent to DKK 5.5 billion, driven by higher heat generation and gas sales. However, EBITDA dropped 43 percent to DKK 430 million due to lower ancillary service earnings and higher competition in energy markets.
Orsted’s gross investments during Q1 2026 totaled DKK 8.2 billion. Offshore wind projects accounted for DKK 7.4 billion, primarily related to Greater Changhua 2b and 4 in Taiwan, Hornsea 3 and Baltica 2 in Europe, and Sunrise Wind and Revolution Wind in the US. Onshore investments reached DKK 0.6 billion, while bioenergy and carbon capture projects represented DKK 0.2 billion.
Operating expenses remained significant as cost of sales increased to DKK 15.9 billion from DKK 10 billion, while external expenses totaled DKK 2.1 billion. Employee costs declined slightly to DKK 1.55 billion. Depreciation and amortization reached DKK 2.47 billion.
Orsted recorded impairment losses of DKK 1.37 billion in Q1 2026 due to higher long-term US interest rates. Net profit fell 46 percent to DKK 2.6 billion because of higher tax expenses and impairments despite stronger EBITDA performance.
Cash flow from operating activities surged to DKK 6.5 billion from DKK 634 million in Q1 2025, while free cash flow improved significantly to negative DKK 890 million from negative DKK 10.2 billion. Interest-bearing net debt stood at DKK 21.3 billion compared with DKK 68.4 billion a year earlier, reflecting improved balance sheet strength after capital raising initiatives.
Orsted highlighted increasing demand for renewable energy security in Europe and continues advocating for offshore wind expansion through supportive regulatory frameworks, contract-for-difference auctions, and long-term electrification strategies.
BABURAJAN KIZHAKEDATH
