Fortum's financial targets
Financial targets give guidance on Fortum's view of the company's long-term value creation potential, its growth strategy and business activities.
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)
- 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) (2024: 0.2 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.
- Fortum targets to reduce its annual fixed costs by EUR 100 million (excluding inflation) gradually until the end of 2025 with a full run-rate from the beginning of 2026. Fortum reports the progress of the cost efficiency programme quarterly on interim reports. Go to the interim reports archive.
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.
- 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
Strategic | Operations | Commercialisation | Development |
|---|---|---|---|
Rationale | Strong competitiveness and optimisation | Stable, scenario-resilient cash flows | Future-proofed portfolio |
Targets | Reach full value creation potential of existing operations | Create customer-centric products and services | Develop customer-driven growth options |
KPIs | Fleet availability | Hedged share of rolling 10-year outright generation volume | Ready-to-build pipeline for solar and onshore wind |
| Optimisation premium for outright portfolio | Customer satisfaction index (CSI) | New ready-to-deploy flexibility* |
Previous KPIs and outcomes in 2024
Strategic target | Strengthen Nordic leadership | Ensure value creation from flexibility | Stabilise income streams | Demand-driven renewables |
|---|---|---|---|---|
KPI target | Fleet availability: >90% for nuclear, >95% for hydro | Annual optimisation premium 6–8 EUR/MWh | Hedged share of rolling 10-year outright generation volume >20% by end of 2026 | Ready-to-build pipeline for solar and onshore wind >800 MW by end of 2026 |
2024 outcome | 84% for nuclear, 97% for hydro | 8.7 EUR/MWh | 18% | 0 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.