NEXTENERGY SOLAR FUND LIMITED - FY Results

NextEnergy Solar Fund (NESF) reported resilient full-year financial results for FY2026, highlighting a year of strategic transformation aimed at enhancing long-term shareholder value. The investor update outlined a strategic reset including a sustainable 75% cash flow-based dividend policy, an expanded capital recycling programme, and a clear capital allocation framework focused on debt reduction and portfolio optimisation. Total income increased to £141.3 million, while portfolio and Holdco EBITDA rose to £104.5 million, supported by strong operational performance, cost efficiencies, and portfolio generation of 844 GWh, exceeding budget by 2%. NESF completed disposals of 245MW of solar assets, raising £119 million and delivering a 2.44p NAV uplift, while reducing borrowings by £31 million. Despite NAV pressure from lower long-term power price forecasts, subsidy indexation changes, and higher discount rates, the company maintained robust cash generation, achieving dividend cover of 1.2x and declaring 8.43p per share for FY2026. Management expects further value creation through repowering initiatives, energy storage investments, lease extensions, and continued deleveraging, targeting long-term total returns of 9–11%. With 99 operating renewable assets, inflation-linked revenues, active hedging strategies, and exposure to growing demand for clean energy, AI-related power consumption, and energy security, NESF believes its growth strategy positions the company to narrow its share price discount, strengthen margins, and deliver sustainable income and capital appreciation for investors.