"The tripartite initiative may be called 'energy', but we are not in an energy crisis," Encevo’s CEO points out, 
The group ended the 2025 financial year with a net profit of €154m, compared with €193m a year earlier. Revenue fell from €3.8bn to €3.4bn due to lower electricity prices and a decline in gas sales volumes, but Ebitda remained at a high level of €346m.
2025 marks the second-best operating result in the group’s history, following the exceptional year of 2024. “Although the financial results for 2025 do not match the exceptional levels of 2024, 2025 is historically our second-best year, which demonstrates the group’s financial stability in a volatile environment,” the CEO added.
“By acting proactively and with discipline, Encevo is turning the current market volatility into lasting confidence for its customers and for the energy system as a whole,” summarised Jeff Feller, chairman of the board of the energy group.
€1.3bn in investment over the next three years
But the real strategic issue lies in the scale of future investment. Having already invested €311m in 2025 – the second-highest amount ever reached by the group – Encevo is preparing for a further ramp-up that could take annual investment to around €500m this year, then €1.7bn cumulatively over the next three years, according to the figures provided by Jeff Feller during the results presentation.
This represents a significant step up for Luxembourg.
And the 2025 financial statements clearly show that Encevo has methodically prepared for this new phase. Operating cash flow reached €440m in 2025, compared with €258m a year earlier. This cash generation enabled the company to simultaneously finance €311m in capital expenditure whilst maintaining a positive free cash flow of €159m. At the same time, Encevo reduced its net financial debt by €63m to €586m, whilst improving its gearing ratio from 35% to 31%. Shareholders’ equity now stands at nearly €1.9bn. The group has also secured a €200m ten-year green private placement to finance its infrastructure and renewable projects. At the same time, Encevo has extended its €350m revolving credit facility (RCF) until January 2030; this facility remains entirely undrawn.
In other words, Encevo appears to have deliberately strengthened its liquidity and improved its balance sheet before embarking on a new phase of major investment in networks, batteries, hydrogen and the digitalisation of the energy system. A significant proportion of this investment is being channelled into network infrastructure. In 2025 alone, €218m was allocated to electricity networks.
“Secure and resilient networks are a fundamental prerequisite for a successful energy transition,” emphasises Jeff Feller in the annual report. The objective is clear: to prepare the country for the growing electrification of energy use, to integrate more intermittent renewable energy sources, and to strengthen Luxembourg’s energy resilience.
The flagship project remains the 380kV interconnector with Germany, which is regarded as strategic for the country’s security of supply. At the same time, Creos is continuing to strengthen the national grid, notably through the gradual upgrade of the northern part of the country from 65kV to 110kV.
Record level of ‘green’ production in terms of household consumption
The group is also stepping up its expansion into the hydrogen sector. Creos Luxembourg Hydrogen was officially designated as the national operator of Luxembourg’s future hydrogen network at the end of 2025. The mosaHYc, HY4Link and LuxHyVal projects are set to gradually connect Luxembourg to the future ‘European Hydrogen Backbone’. Construction of the infrastructure is still scheduled to begin in September, with the first hydrogen deliveries due a year later.
In terms of renewables, Encevo has also reached a symbolic milestone. Renewable energy production now exceeds 1 TWh, which is roughly equivalent to the annual electricity consumption of all households in Luxembourg. Installed renewable capacity stands at 814MW.
“What matters now is scale. We need to accelerate the transition whilst ensuring energy remains affordable and systems remain reliable,” says Claude Seywert. This transformation now hinges on “energy flexibility”: batteries, smart consumption management, energy sharing and automation. In 2025, Encevo launched its e_productivity solution, designed to coordinate solar panels, batteries, charging points and heat pumps within households. “Our priority is to ensure that tariffs, digital tools and automation work together so that customers can act with confidence,” explains Mr Seywert. The group is also seeking to gradually transform consumers into active participants in the energy system through new tariff offers—Fix, Drive and Dynamic—as well as energy-sharing solutions.
However, this shift is taking place against a backdrop of ongoing geopolitical tensions. Encevo acknowledges that tensions in the Middle East continue to fuel risks in global energy markets. Yet the management believes that Europe is now better prepared than it was in 2022, thanks to the diversification of supply sources and the development of LNG infrastructure.
No price increase
In this context, the group has also issued an important message to consumers. According to Jeff Feller and Claude Seywert, no increase in electricity prices is currently planned for residential customers, either this year or next. This price stability comes at a time when Encevo is entering a phase of extremely heavy industrial investment. The group appears to be using its current financial strength to absorb part of the cost of transforming the energy system.
The company’s financial position remains robust. Net debt fell to €586 million, down from €649m a year earlier, whilst the debt-to-equity ratio decreased from 35% to 31%. Encevo also raised €200m through its first ten-year green private placement to finance its infrastructure and renewable energy projects.
“The group continues to prioritise investment in network infrastructure, renewable energy and digital solutions, whilst maintaining a disciplined approach to capital allocation and rigorous risk management,” summarises the group’s CFO, 
Behind the financial results, Encevo now appears to be taking on a much broader role than that of a mere energy supplier. The group is gradually positioning itself as an operator of critical energy transition infrastructure in the Greater Region, at a time when networks, storage, hydrogen and smart consumption management are becoming just as strategic as electricity generation itself.
And the new dividend policy, which was presented in Esch at the same time as it was published online alongside the response from the Minister for the Economy, 
