Scatec Shares Fall After Results – Global Group Advances Ipp Strategy Shift

Oslo (Norway) – Norwegian renewable energy company Scatec reported lower revenue and earnings in Q1 2026 while expanding its international project pipeline and advancing its business model shift. The RENIXX-listed stock initially fell by over 10 percent after the results, but recovered almost all losses by the end of trading. The company continues its transition towards a more integrated IPP model.

The earnings development should primarily be seen in the context of the ongoing strategic transition. Scatec is shifting its focus from project-based asset sales towards a more integrated independent power producer (IPP) model with long-term operated assets. One-off effects from project sales in the previous year are increasingly falling away, while the company continues to expand both its project pipeline and its own power generation assets. Scatec confirmed its 2026 outlook.

Revenue and earnings decline – power generation rises amid strategic repositioning

Scatec’s shift towards a lower share of one-off project sales significantly affects year-on-year comparisons.

As a result, proportional revenue fell to NOK 1,640 million in Q1 2026 (Q1 2025: NOK 2,387 million). EBITDA amounted to NOK 774 million (Q1 2025: NOK 1,379 million). Electricity production increased over the same period to 1,046 GWh (Q1 2025: 979 GWh).

In the Development & Construction (D&C) segment, Scatec generated revenue of NOK 695 million (Q1 2025: NOK 751 million), while EBITDA rose to NOK 100 million (Q1 2025: NOK 26 million). This was partly driven by the reversal of a provision related to the Obelisk project.

Adjusted net income for the group was NOK -192 million (Q1 2025: NOK 764 million).

Project pipeline reaches record level

Scatec reported several operational milestones in its international portfolio during the quarter. In Tunisia, the Sidi Bouzid and Tozeur projects were commissioned, as well as the first phase of the Obelisk project in Egypt.

In addition, construction started on five new projects in the Philippines, Romania, Colombia and South Africa, comprising a total of 575 MW of solar capacity and 80 MWh of battery storage. The 900 MW Shadwan wind project in Egypt was transferred into the project backlog.

CEO Terje Pilskog pointed to a record-high development pipeline, which forms the basis for future growth across project development, construction activities and long-term ownership of power assets.

Strategic partnership for large-scale project in Egypt

In parallel with the quarterly results, Scatec announced a new equity partnership for the Obelisk project in Egypt. The National Bank of Egypt is acquiring a 20 percent stake. The hybrid project comprises 1.1 GW of solar capacity and 100 MW/200 MWh of battery storage. Following completion of the transaction, Scatec will hold an economic stake of 40 percent and remain the controlling partner through a tiered ownership structure. EDF Power Solutions and Norfund also hold stakes.

Scatec views the transaction as another step towards optimising its capital structure while scaling its portfolio within the IPP model.

Scatec outlook: focus on stabilising cash flows

For the full year 2026, Scatec confirms its guidance of proportional power production of 5.05 to 5.45 TWh and EBITDA from power generation of NOK 3.6 to 3.9 billion.

The remaining construction backlog amounts to NOK 4.2 billion. The company expects gross margins of 10 to 12 percent for ongoing projects.

With the continued transition towards a more earnings-stable IPP model, long-term cash flow generation from owned assets is increasingly becoming the core focus of the company’s strategy.

Source: IWR Online, 08 May 2026