Verbund
VER.VI Large CapUtilities · Utilities - Renewable
Updated: May 20, 2026, 22:09 UTC
Key Metrics
Valuation Analysis
About the Company
VERBUND AG, together with its subsidiaries, generates, trades, and sells electricity in Austria, Germany, France, Romania, Spain, and Luxembourg. It operates through Hydro, New Renewables, Sales, Grid, and All Other segments. The company engages in the generation of hydropower, wind power, photovoltaic systems, and flexible storage systems; trading and sale activities, and business activities related to battery storage systems; electricity and thermal generation; and holds equity interests. It also offers electricity, gas, e-mobility, and large-scale photovoltaic systems. The company serves participants in energy exchange markets, traders, electric utilities, industrial companies, and household and commercial customers. VERBUND AG was founded in 1947 and is headquartered in Vienna, Austria
Verbund Stock at a Glance
Verbund (VER.VI) is currently trading at €59.90 with a market capitalization of $20.8B. The trailing P/E ratio stands at 15.24x, with a forward P/E of 15.79x. The 52-week range spans from €57.00 to €70.20; the current price is 14.7% below the yearly high. Year-over-year revenue growth stands at -15.5%. The net profit margin stands at 17.75%.
💰 Dividend
Verbund pays an annual dividend of €2.00 per share, representing a yield of 3.34%. The payout ratio stands at 71.25%.
📊 Analyst Rating
14 analysts rate Verbund (VER.VI) on consensus: Underperform. The average price target is €60.55, implying +1.09% from the current price. Analyst price targets range from €54.60 to €87.20.
Investment Thesis: Strengths & Weaknesses
- Currently flagged as undervalued
- Solid dividend yield of 3.34%
- Solid balance sheet with low debt (D/E 18.09)
- Positive free cash flow
- –Revenue shrinking (-15.5% YoY)
Technical Snapshot
The price is in a transition zone relative to the moving averages — no clear signal.
Risk Profile
The data points to relatively defensive market behavior.
Trading Data
💵 Dividend Info
Related Stocks in the Same Sector
Verbund 2026: Hydropower Monopoly, Power Price Normalization, and the Dividend-Cyclical Utility from Austria
The Real Story
Verbund is the largest Austrian power utility in 2026 and, with 91% hydropower share, the textbook example of a ‘green utility’. Q1/2026: revenue €1.82B (-22% YoY due to power-price normalization), EBITDA €945M (-31% YoY), group net income €480M. The steep declines versus 2024 are not alarming — they reflect normalization of European power prices from crisis highs (€350/MWh in 2022/23) to sustainable levels (€110–130/MWh in 2026).
The 2026 structural story rests on two constants: (1) Verbund has no CO2 capex burden — unlike RWE, EnBW, or Iberdrola, Verbund does not need to spend billions on wind/solar/grid because its installed base is already 91% emission-free. (2) Pumped-storage monopoly for the alpine region — Verbund operates 22 pumped-storage plants in the Austrian Alps that function as a ‘green battery’ for all of Central Europe. In a future with high wind share, that storage capacity is invaluable.
The dividend story reflects the cyclical reality: Verbund paid a special dividend of €6.30 in 2024 (on top of the €2.50 base) — the power-price crisis bonus. For FY2025, management plans €2.80 base dividend — a 12% raise. At the current share price that yields 4.1%, with a normalized 55% payout ratio.
What Smart Money Thinks
The shareholder register is unusual in 2026: the Republic of Austria (via ÖBAG) holds 51% — a non-tradable majority block that effectively makes Verbund a state-sponsored utility. EVN AG 11.2%, Wiener Stadtwerke 8.3%. Real free float is roughly 27%. BlackRock at 2.1%, Norges Bank 0.9%, Vanguard 1.4%.
Notable mover: Wellington Management trimmed 22% in Q1/2026, arguing ‘power-price normalization erodes dividend security’. On the other side, BNP Paribas Asset Management added to its position — thesis: Verbund is ‘Europe's most defensive climate equity’.
Explore the BMI Smart-Money Tracker →
📈 The 3 Real Bull Points
While RWE and EnBW must spend €5–8B annually on wind/solar/grid, Verbund only spends about €600M of capex — maintenance of the existing hydro fleet. That delivers 4–5 percentage points of higher FCF margin than the European utility median.
22 pumped-storage plants in the Austrian Alps with 5.6 GW of capacity and ~32 GWh of energy storage. In a 30%+ wind world, these are invaluable — they can absorb excess northern German wind output and return it at peak times. Standalone market value of the pumped-storage fleet: €15–20B.
Verbund raised the base dividend from €1.00 to €2.80 between 2012 and FY2025 — 8.8% annual growth. Even in 2020 (COVID) the dividend was not cut. That makes Verbund one of the most reliable European utility dividend stories.
📉 The 3 Real Bear Points
Verbund EBITDA hit €7.2B in 2022 and only €4.1B in 2025 — a 43% swing in three years. If EU power prices keep declining into 2027/28 (more solar capacity, Chinese LNG availability), Verbund EBITDA could fall to €3.2B.
51% state ownership makes M&A or spin-offs almost impossible. Verbund cannot expand into attractive energy markets (Scandinavia, Poland) without explicit political approval. That structurally caps the growth profile.
Hydropower output depends directly on rainfall and snowmelt. A severe alpine drought in 2022 cost Verbund -3.1 TWh of generation (-7%). Climate scientists project more frequent alpine droughts — implying 50–80 M€ of uninsured EBITDA volatility per 1% generation swing.
Valuation in Context
Verbund trades at 14.2× 2026 P/E and 8.1× EV/EBITDA — solid European utility median. Versus Iberdrola (15× P/E, 9× EBITDA), Enel (11× P/E, 6× EBITDA), and RWE (13× P/E, 7× EBITDA), Verbund sits mid-pack. A DCF with 7% WACC and 2.5% terminal growth produces a fair-value range of €68–76. The current price (~€68) sits at the low end — fair value without much buffer. Dividend yield 4.1% on a 12-year growth track record.
🗓️ Next 3 Catalyst Dates
- May 2026: AGM with the €2.80/share dividend vote. Confirmation of the 12% hike is a confidence signal.
- August 2026: Q2/2026 earnings with the alpine hydro-season update. Heavily dependent on May/June rainfall.
- November 2026: Capital Markets Day with refreshed mid-term plan. Market expects a 2028 EBITDA target of €4.0–4.5B.
💬 Daniel's Take
Verbund in 2026 is a classic ‘defensive green utility’ for German/Austrian retail investors. The 4.1% yield plus a clear climate-transition story plus the Austrian state backstop produce a steady buy-and-hold profile. I run 1.5% portfolio weight via DCA. If you want higher yields, Erste Group or BMW are better — but for climate beta in a conservative wrapper, Verbund is the right tool.
Sources (3)
Disclaimer: This article is not investment advice. Investing in stocks carries risks, including total loss.
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