Fortum's financial targets

Fortum updated its long-term financial targets, strategic targets and strategic KPIsin connection with Fortum Investor Day 2025 in November. Comparable RONA (return on net assets) of 14% was added for the Group as a long-term target. The target of maintaining a credit rating of at least BBB.

Fortum’s strategy, launched in 2023, and strategic priorities remain fundamentally unchanged. The strategic priorities are now ‘deliver reliable energy to customers’, ‘drive decarbonisation in industries’, and ‘transform and develop’.

Long-term financial targets

• Group Comparable RONA 14% (new from November 2025), (2025: 10.9%)
• Stable credit rating of at least BBB. Read more about the credit rating of Fortum.
• Leverage guidance: financial net debt/comparable EBITDA can be a maximum of 2.5 times (previously 2.0–2.5)  (2025: 1.2 times for continuing operations). Read more about the financial performance of Fortum.
• Fortum's dividend policy is based on a payout ratio of 60-90% of comparable EPS . The payout ratio will be used so that the upper end of the range of the pay-out ratio is applied in situations with a strong balance sheet and low investments, while the lower end of the range would be applied with high leverage and/or significant investments and high capital expenditure. The dividend payment history is presented as graph below. More information about Fortum's dividend.

Financial discipline

• For the period of 2026–2030, Fortum’s committed capital expenditure is expected to be approximately EUR 2.0 billion excluding acquisitions. This includes growth capex of approximately EUR 750 million in total and maintenance capex of approximately EUR 250 million per year. In addition, Fortum has potential to invest an additional EUR 2.5 billion until 2030, should attractive investment opportunities arise. For 2026, the total committed capital expenditure is expected to be approximately EUR 550 million excluding acquisitions.
• Hurdle rates for new investments of project WACC +150 bps to +400 bps hurdles depending on technology or investment project, as well as environmental targets.

In addition, Fortum has set ambitious environmental and decarbonisation goals with SBTi-validated climate targets, including net-zero greenhouse gas emissions across the value chain by 2040, coal exit by the end of 2027, targets for specific emissions and biodiversity targets updated in November 2025.

Strategic targets and KPIs

* Including customer assets (no capital expenditure requirement) and ongoing asset investments (350 MW).

How to reach the targets

Fortum is well-positioned to capture opportunities resulting from the energy transition. In the mid- to long-term, electricity is expected to continue to gain a significantly higher share of total energy consumption bringing decades of demand growth for the Nordics. Fortum will phase the implementation of its strategy to enable successful strategy execution and manage the market uncertainty and weaker investment sentiment. The Group's business portfolio is built on its core operations – hydro and nuclear generation, flexibility and optimisation, as well as its customer business and heating and cooling operations. Fortum's objective is to strengthen and selectively grow these core businesses and competence areas, while capitalising on the volatile markets. Simultaneously, to build preparedness for future growth, Fortum is developing a ready-to-build pipeline of onshore wind and solar projects to serve customer demand growth with long-term power purchase agreements. In addition, the Group is exploring future development opportunities for, among others, clean hydrogen. As the operating environment shows increased uncertainty, reduced visibility and postponement of industrial investments, the company specified its business portfolio, clarified capital allocation and set new strategic targets with measurable key performance indicators (KPIs). 

With these actions, Fortum will be prepared for growth longer term, which will be driven by decarbonisation through electrification of other sectors. With its already decarbonised production portfolio and hardly any fossil assets to replace, Fortum can partner and over time grow with industrial customers in clean energy while focusing on efficient capital allocation, attractive returns, balanced risk exposure, and sustainability.

Fortum reduced its annual fixed costs by EUR 100 million (excluding inflation) by the end of 2025 with full run-rate from the beginning of 2026. The reduction of EUR 100 million corresponds to some 10% of the Group’s fixed cost base for the year 2022. Fortum estimates that the new run-rate for its fixed cost base in 2026 will be approximately EUR 870 million, including the fixed cost increase of EUR 20 million in the Swedish property tax from 2025.

As part of the programme, total cost synergies materialising from the Consumer Solutions segment's 2024 brand mergers were approximately EUR 13 million in 2025. In addition, actions related to change negotiations in the Finance and the Sustainability and Corporate Relations functions earlier in the year contributed to the cost reductions. The negotiations resulted in the reduction of 62 job positions in these functions, comprising retirements, transfers to other positions at Fortum, as well as lay-offs.