EPS of Serbia posts €330 million net profit in 2025 as weak hydrology hits exports

Serbia’s state-owned power utility Elektroprivreda Srbije (EPS) improved its earnings in 2025 even as key operating headwinds persisted, highlighting how pricing and tariff design can offset—at least temporarily—pressures from generation and export performance. The company reported a net profit of €330 million, up from €208 million in the prior year.

Revenue rises on electricity prices, but exports weaken

Total operating revenue reached €3.9 billion, increasing by roughly €130 million year-on-year. EPS said the majority of income came from electricity sales, generating about €3.6 billion, with additional revenue from sales to the transmission system operator EMS. Smaller contributions were recorded from coal, thermal energy, gas and technological steam.

Higher electricity prices provided part of the lift. During 2025, electricity prices rose by 6.6%, while the threshold for the highest consumption tariff was lowered from 1,600 kWh to 1,200 kWh. That change effectively accelerated the movement of households into more expensive billing categories.

Domestic revenues increased from €3.7 billion to €3.85 billion, but export results deteriorated sharply. Export income fell from €54 million in 2024 to €28 million in 2025—down nearly 48%—a decline EPS attributed to reduced competitiveness and lower external trading activity.

Poor water inflows reduce hydro output for a second year

EPS’s business performance report pointed to unfavorable hydrological conditions as a major factor behind weaker generation and export capacity. River inflows were about 30% below long-term averages, leading hydroelectric production to fall for the second consecutive year, by around 20% compared with 2024.

Total electricity production in 2025 was 30,556 GWh. Coal-fired thermal power plants remained the backbone of the generation mix, accounting for 71.4% of total output.

Profit recovery continues after the crisis years

While EPS faced operational pressures tied to weaker exports and less favorable water conditions, the company’s 2025 results also reflect progress since the major operational and financial crisis of 2021–2022. In that earlier period, disruptions in coal production and electricity generation led to large-scale imports and significant financial losses for EPS.

For investors watching Serbia’s power sector, EPS’s latest figures underscore a central trade-off: improved profitability can coexist with asset- and weather-driven constraints that still weigh on output flexibility and external sales when hydrology turns unfavorable.