Orsted Q1 EBITDA Beats Expectations Despite U.S. Impairments

Orsted A/S (CPH: ORSTED) reported stronger-than-expected first-quarter 2026 earnings, driven by solid offshore wind performance, although the company’s shares slipped 2.4% after non-cash U.S. impairments weighed on net income.

The Danish renewable energy giant posted EBITDA of DKK 9.5 billion for the quarter, slightly ahead of analyst expectations of DKK 9.47 billion. Growth was largely fueled by Orsted’s offshore wind division, which delivered EBITDA of DKK 7.55 billion, outperforming forecasts of DKK 7.44 billion. The improved performance came after the successful commissioning of major offshore wind projects, including Borkum Riffgrund 3 and Greater Changua 4, alongside stronger wind speeds across operations.

Despite the earnings beat, Orsted’s net profit missed expectations due to DKK 1.4 billion in impairments tied mainly to rising long-term U.S. interest rates. The write-downs highlighted ongoing challenges in the U.S. renewable energy market, where higher financing costs continue to pressure clean energy developers.

The company’s onshore business generated EBITDA of DKK 1.37 billion, slightly above market expectations. However, the bioenergy segment underperformed significantly, reporting DKK 430 million compared with analyst estimates of DKK 775 million. Lower ancillary service revenue and weaker gas market conditions contributed to the decline.

Orsted maintained a strong financial position, with its funds-from-operations-to-net-debt ratio reaching 42.2%, comfortably above the company’s long-term target of 30%. Management reiterated its strategy of prioritizing profitability and disciplined investment rather than aggressive expansion as it prepares for upcoming 2026 renewable energy auctions.

Investors appeared cautiously optimistic following the results. While operational improvements in offshore wind supported earnings growth, concerns remain over U.S. market conditions and weaker bioenergy performance. Still, Orsted’s resilient balance sheet and focus on high-return renewable energy projects continue to position the company as a major player in the global clean energy sector.