Repower, Switzerland’s largest independent power producer, reported a first-half 2026 decline in earnings, driven by weaker hydropower output and the expiration of price hedges from the Ukraine war’s energy market surge. The company’s total output fell 13% year-over-year to 939 million Swiss francs, while its operating earnings (EBIT) dropped 22% to 51 million francs, leaving a net group profit of 34 million francs—down 28% from the same period last year.
The downturn stemmed primarily from reduced hydropower generation, exacerbated by a snow-poor winter and low spring rainfall, which fell below expectations. While higher Swiss and French energy prices, along with robust trading operations, partially offset losses, the fading impact of hedging contracts signed during the Ukraine war’s high-energy price phase further eroded margins. These contracts, struck at elevated prices, were set to expire, reducing the company’s earnings cushion.
For the second half of 2026, Repower anticipates continued challenging conditions, with energy prices, water availability, and the operational status of its plants remaining key variables. Despite these risks, the company reiterated its expectation of a ‘solid’ overall result for the year.
Repower’s performance highlights the volatility faced by hydropower-dependent utilities in a climate-sensitive region, where water scarcity and shifting energy market dynamics continue to shape profitability.
