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.

Strong financial foundation

  • Stable credit rating of at least BBB
  • Leverage guidance: financial net debt/comparable EBITDA of 2.0-2.5 times in the longer term (2022: 0,4 times for Fortum Group, continuing operations and 0,6 times for Fortum Group excluding Russia)
  • Fortum's dividend policy is based on a payout ratio of 60-90% of comparable EPS – reflecting the potential earnings fluctuations of Fortum’s power generation portfolio. (The earlier policy to pay a stable, sustainable, and over time increasing dividend.)

Financial discipline

  • For the years 2023-2025 total CAPEX of EUR 2.4 bn, of which EUR 0.9 bn maintenance, and up to EUR 1.5 bn growth 
  • Hurdle rates for new investments of project WACC +150 bps to +400 bps (depending on project and technology)

For the year 2022, Fortum’s Board of Directors proposes a dividend of EUR 0.91 per share which corresponds to 75% of the Groups comparable EPS of EUR 1.21/ share excluding impact from the Russian operations. The Board proposes that the dividend is paid in two instalments, in the second and fourth quarter of 2023.

In addition, Fortum uses the GRI Sustainability Reporting Standards disclosures to measure compliance with human rights principles, labour standards, the environment, and anti-corruption.

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. In the short-term, the energy sector continues to be impacted by geopolitical tensions, a generally weaker economic outlook with higher inflation and interest rates, and tightening and unclear regulation in combination with volatile commodity markets. This is addressed by a phased strategy execution to manage the uncertainty.

In the first step, the focus will be on optimising the best-in-class operations, focusing on earnings and cash flow, as well as returning to the bond markets to refinance the group’s debt portfolio. This requires a balance between capital allocation, balance sheet and dividends. We will simultaneously build capabilities for future growth by exploring opportunities and developing a project pipeline together with industrial customers.

In a second step - and this might be in the mid of this decade - we will consider larger scale growth decisions which might require increased capital expenditure

In March 2023, Fortum updated the strategy for the whole Fortum Group to drive the clean energy transition and deliver sustainable financial performance. Aligned with the goals of the Paris Agreement, Fortum targets carbon neutrality latest by 2030 with ambitious mid-term targets.


Financial net debt/EBITDA development
Dividend history