Should Lower Q3 Profits at VERBUND (WBAG:VER) Require Action From Investors?

• VERBUND AG released its third quarter and nine-month results for 2025, reporting quarterly sales of €1.78 billion and net income of €409.5 million, both lower than the prior year's figures.
• While nine-month sales remained stable year-on-year, the drop in net income and earnings per share highlights recent profitability pressures for the company.
• Given the decline in net income reported in the latest results, we'll explore how these figures may influence VERBUND's investment narrative.

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VERBUND Investment Narrative Recap

For investors to remain confident in VERBUND, the core belief is in the company’s ability to drive long-term value through major renewable and grid projects, despite short-term earnings volatility. The Q3 2025 results, with lower net income and earnings per share, underline ongoing profitability challenges but do not materially alter the immediate focus on project completions and electricity price trends as the key catalyst, while earnings volatility from regulatory and market dynamics remains the main risk.

The most relevant recent announcement is VERBUND’s Q3 2025 earnings release, showing that while nine-month sales held steady year-on-year, net income dropped, reflecting the influence of weaker electricity prices and ongoing investment-driven margin pressure. This reinforces the importance of the company’s execution on new projects and the future regulatory environment in shaping the outlook for both revenue growth and earnings stability.

Yet, investors should also be aware that, in contrast to VERBUND’s expansion plans, short-term profitability could remain under pressure if electricity price fluctuations persist...

Read the full narrative on VERBUND (it's free!)

VERBUND's outlook anticipates €5.8 billion in revenue and €1.1 billion in earnings by 2028. This assumes an annual revenue decline of 11.8% and a €0.7 billion decrease in earnings from the current €1.8 billion level.

Uncover how VERBUND's forecasts yield a €63.90 fair value, a 6% downside to its current price.

Exploring Other Perspectives

Simply Wall St Community members published fair value estimates for VERBUND ranging widely from €60 to €87.60, drawing on four diverse forecasts. Persistent regulatory uncertainties remain a key factor as you compare these perspectives and consider the impact on long-term performance.

Explore 4 other fair value estimates on VERBUND - why the stock might be worth as much as 29% more than the current price!

Build Your Own VERBUND Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your VERBUND research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free VERBUND research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate VERBUND's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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