Greencoat UK wind reports solid cash generation, negative shareholder return

(Sharecast News) - Greencoat UK Wind reported robust cash generation in 2025 but a lower net asset value and negative total shareholder return, as the renewable infrastructure fund continued asset disposals, share buybacks and debt reduction in a bid to rebuild shareholder value. For the year ended 31 December, net cash generation at group and wind farm SPV level was £291m, while the portfolio generated 5,403GWh of renewable electricity.

The FTSE 250 company delivered its 12th consecutive annual dividend increase in line with or ahead of RPI, declaring dividends of 10.35p per share for the year, up from 10p, equating to £226.8m in aggregate.

Net asset value fell to £2.88bn from £3.41bn, with NAV per share declining to 133.5p from 151.2p.

The share price ended the year at 98.1p, down from 127.7p, leaving market capitalisation at £2.12bn compared with £2.88bn a year earlier.

Total shareholder return was negative 15.7%, compared with negative 8.6% in 2024.

Its gross asset value reduced to £5.01bn from £5.65bn.

During the year, the company completed £181m of divestments, all at prevailing NAV, taking total disposal proceeds to £222m over the previous 14 months.

It also repurchased £109m of shares at an average 23% discount to NAV, bringing total buybacks since October 2023 to £199m.

Debt principal was reduced by £168m.

Asset optimisation initiatives added £5m to NAV in 2025, taking the cumulative benefit since 2016 to £148m.

The portfolio continued to support around two million homes annually and reduce carbon emissions by 2.2 million tonnes per year, while £6.7m was invested in community projects during the period.

"The board and the investment manager recognise that this has been a further challenging year for investors and have been working tirelessly to protect and build shareholder value," said chair Lucinda Riches.

"Net cash generation remained robust at £291m."

She added that material progress had been made on capital allocation, citing dividend growth, divestments at NAV, a "sector-leading share buyback programme" and a "material reduction in debt principal".

Riches said the board had clear capital allocation priorities for 2026, including further divestments, reducing gearing, continuing share buybacks and a disciplined return to reinvestment.

She added that the company's "structurally high dividend cover model is expected to deliver around £1 billion of excess cashflow over the next five years", providing "significant optionality to enhance value for shareholders".

At 0940 GMT, shares in Greencoat UK Wind were up 0.31% at 93.74p.

Reporting by Josh White for Sharecast.com.