FORTUM CORPORATION INVESTOR NEWS 25 NOVEMBER 2025 AT 8:30 EET

Fortum updates its long-term financial targets, strategic targets and strategic KPIs. Fortum adds comparable RONA (return on net assets) of 14% for the Group as a long-term target. Fortum upholds the target of maintaining a credit rating of at least BBB.

Fortum's strategy, launched in 2023, and strategic priorities remain fundamentally unchanged. The strategic priorities are now `deliver reliable energy to customers', `drive decarbonisation in industries', and `transform and develop'.

Long-term financial targets

• Group Comparable RONA 14% (new)
• Credit rating at least BBB (unchanged)

The Group Comparable RONA for the last twelve months (Q3 2025) was 10.3%.

Earnings improvement

Fortum expects its Comparable operating profit to improve by EUR 330 million by 2030 compared to EUR 930 million for the last twelve months (Q3 2025). This improvement is based on own actions, for example improved fleet availabilities, efficiency improvements and organic growth. The improvement does not include capital expenditure, acquisitions or price impacts.

Capital allocation

Balance sheet: To ensure a credit rating of BBB, Financial net debt-to-Comparable EBITDA can be a maximum of 2.5 times (previously 2.0-2.5). The group's balance sheet is currently strong with low leverage of 1.0 times (Q3 2025). Fortum's current credit rating is BBB+.

Capital expenditure: For the period of 2026-2030, Fortum's committed capital expenditure is expected to be approximately EUR 2.0 billion excluding acquisitions. This includes growth capex of approximately EUR 750 million in total and maintenance capex of approximately EUR 250 million per year. In addition, Fortum has potential to invest an additional EUR 2.5 billion until 2030, should attractive investment opportunities arise.

For 2026, the total capital expenditure is expected to be approximately EUR 550 million excluding acquisitions.

To ensure required returns for any potential new investments, Fortum applies previously set investment criteria; project based WACC + 150-400 investment hurdles depending on technology or investment project, as well as its sustainability targets.

Dividend policy: Fortum's dividend policy with a payout ratio of 60-90% of comparable EPS remains unchanged. The upper end of the range of the pay-out ratio is applied in situations with a strong balance sheet and low investments, while the lower end of the range is applied with high leverage and/or significant investments and high capital expenditure. Fortum seeks to continue to pay competitive cash dividends.

Strategic targets and KPIs

Fortum has set new and updated strategic targets to capture long-term opportunities and mitigate business and market risks as well as to measure its strategy implementation. Fortum's strategic focus areas are Operations, Commercialisation and Development.

* Including customer assets (no capital expenditure requirement) and ongoing asset investments (350 MW)

(Previous KPIs: Optimisation premium for outright portfolio 10 EUR/MWh for 2025, 6-8 EUR/MWh for 2026-; Hedged share of rolling 10-year outright generation volume 20% by the end of 2026; Fleet availability: unchanged)

Business portfolio

Fortum's business portfolio consists of hydro power, nuclear power, flexibility and optimisation, demand-driven renewables (with PPAs), heating and cooling and customer business.

Sustainability targets

Fortum's sustainability targets remain unchanged. Fortum remains committed to its SBTi-validated short- and long-term targets and net zero target by 2040, coal exit by the end of 2027, targets for specific emissions, and biodiversity targets updated in November 2025.

Investor Day

Fortum will arrange an Investor Day today, 25 November 2025, to provide an overview on the company's operating environment, development of business operations as well as updates on the progress on Fortum's strategy execution and financial targets. The webcast details can be found at fortum.com/investors. Recordings and presentation materials will be available on Fortum's website.

Fortum Corporation

Ingela Ulfves
Vice President, Investor Relations and Financial Communications
 

Further information:

Investors and analysts:
Ingela Ulfves, Vice President, Investor Relations and Financial Communications, tel. +358 40 515 1531
Rauno Tiihonen, Director, Investor Relations, tel. +358 10 453 6150
Siri Markula, Director, Investor Relations and Financial Communications, tel. +358 40 743 2177

Media:
Fortum News Desk, tel. +358 40 198 2843