Greencoat UK Wind (LON:UKW) Releases Quarterly Earnings Results

Greencoat UK Wind (LON:UKW) issued its quarterly earnings results on Thursday. The company reported GBX 5.89 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Greencoat UK Wind had a negative net margin of 99.49% and a negative return on equity of 6.35%.

Here are the key takeaways from Greencoat UK Wind’s conference call:

• Strong first-half performance: Net cash generation rose 36% year over year to £222 million, supported by generation 4.9% above budget and higher realized power prices. Dividend cover was 1.9x, and management expects to reach the top end of full-year cash-generation guidance with at least 1.7x dividend cover.
• UK Wind said its self-funding model leaves roughly £250 million available for investment, including £73 million of additional cash on the balance sheet after dividends, debt repayment, and buybacks. Management forecasts approximately £1 billion of excess cash for reinvestment from 2027–2031 while maintaining CPI-linked dividends.
• The company refinanced £200 million of term debt with six- to eight-year maturities and repaid £54 million during the period, but gearing remained above its self-imposed limit at 41.7%. Management expects natural debt amortization and asset growth to return gearing below 40%, while noting that refinancing support from lenders remains strong.
• Management sees substantial reinvestment opportunities across its 49-asset portfolio, including additional stakes, life extensions, upgrades, repowering, and new construction or late-stage development projects. It expects to allocate roughly £500 million–£600 million over the next three years, while maintaining investment discipline and avoiding a strategic shift into other technologies.
• Power-price volatility and merchant exposure remain important variables; the company hedged about 1.5 TWh year to date and is targeting an approximate 50/50 blend of fixed and floating revenues. Management also flagged uncertainty around long-term wind-resource impacts from climate change and acknowledged that repowering economics will vary significantly by site.

Greencoat UK Wind Stock Up 2.1%

UKW stock traded up GBX 2.22 during midday trading on Thursday, hitting GBX 108.60. The company’s stock had a trading volume of 6,405,636 shares, compared to its average volume of 8,826,681. The firm’s 50-day moving average is GBX 103.41 and its 200-day moving average is GBX 99.87. The company has a current ratio of 0.18, a quick ratio of 14.31 and a debt-to-equity ratio of 59.67. Greencoat UK Wind has a 12 month low of GBX 92.20 and a 12 month high of GBX 122.25. The company has a market cap of £2.34 billion, a PE ratio of -12.47 and a beta of 0.30.

Analysts Set New Price Targets

Separately, Jefferies Financial Group reaffirmed a “buy” rating on shares of Greencoat UK Wind in a research report on Thursday. One research analyst has rated the stock with a Buy rating, According to data from MarketBeat.com, the stock has a consensus rating of “Buy”.

About Greencoat UK Wind

Greencoat UK Wind PLC specializes in renewables infrastructure investments in energy, wind generation assets and onshore and offshore wind farm projects with a capacity of over 10 megawatt. For offshore wind farms, the fund seeks to invest 40% of the Gross Asset Value at acquisition and where a utility company retains an equity interest for a lock-up period. The fund ensures that the total of short-term acquisition financing and long-term debt is between zero and 40% of Gross Asset Value at any time, with average total debt being between 20% and 30% in the longer term.