Orsted (D2G1) AI Stock Analysis

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Orsted

(Frankfurt:D2G1)

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Positive Factors

Offshore construction executionProgress across a large offshore construction portfolio supports Ørsted’s ability to convert committed investment into operating renewable capacity. On-time, on-budget delivery can improve future generation earnings, reinforce execution credibility, and support continued participation in large-scale projects.

Negative Factors

Persistent negative free cash flowPersistent negative free cash flow shows that Ørsted’s investment programme currently consumes more cash than operations generate after capital spending. If sustained, the gap requires continued reliance on debt, asset sales, or other funding and can constrain financial flexibility.

Orsted (D2G1) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 8.50B
Dividend Yield: ―
Average Volume (3M): 459
Price to Earnings (P/E): -25.8
Beta (1Y): 1.40
Revenue Growth: 14.52%
EPS Growth: -166.98%
Country: Germany
Employees: 7,896
Sector: Utilities
Sector Strength: 66
Industry: Renewable Utilities

Orsted Business Overview & Revenue Model

Company Description

Ørsted A/S, along with its associated entities, is a prominent energy company that specializes in the comprehensive lifecycle of renewable power assets. This encompasses the conceptualization, building, ownership, and active management of various sus...

Orsted Earnings Call Summary

Earnings Call Date:Aug 12, 2026(Q2-2026)|% Change Since:-9.24%|Next Earnings Date:Nov 04, 2026

Earnings Call SentimentPositive

The call highlights substantial operational progress across Ørsted's major offshore construction projects, solid H1 earnings growth (DKK 15bn EBITDA ex-partnerships), strong liquidity (>DKK 115bn) and healthy credit metrics (FFO/adjusted net debt ~45%), together with a disciplined capital allocation framework and reinstatement of a modest dividend. Offsetting these positives are a DKK 1.2bn non-cash impairment (U.S.), lower adjusted quarterly profit (DKK 1.9bn vs DKK 2.1bn), softer onshore/bioenergy contributions, some project-specific commissioning dependencies (export cable repair, grid works) and U.S. policy/regulatory uncertainties. Overall, the operational momentum, guidance maintenance, and balance sheet strength outweigh the setbacks, but investors should monitor execution risks and U.S. regulatory developments.

Positive Updates

Strong H1 EBITDA and Q2 Operational Earnings

EBITDA (ex. new partnerships and cancellation fees) for H1 2026 was DKK 15 billion, an increase of more than DKK 1 billion versus H1 2025. Q2 2026 EBITDA (ex. new partnerships and cancellation fees) was DKK 5.4 billion. Earnings from offshore sites (excluding trading) were approximately 5% higher year-over-year in the quarter.

Negative Updates

Non-cash impairment on U.S. offshore project

Incurred a non-cash impairment loss of DKK 1.2 billion in Q2 2026 relating to a U.S. offshore project due to an increase in long-dated U.S. interest rates, reducing net profit and adjusted profitability metrics.

Company Guidance

Ørsted reaffirmed full‑year EBITDA guidance (excluding new partnerships and cancellation fees) of >DKK 28 billion (H1 EBITDA DKK 15 billion, up >DKK 1 billion y/y; Q2 EBITDA DKK 5.4 billion), Q2 net profit DKK 700 million (adjusted DKK 1.9 billion vs DKK 2.1 billion LY) after a DKK 1.2 billion non‑cash impairment; gross CapEx guidance for 2026 is maintained at DKK 50–55 billion (Q2 gross investments DKK 10.1 billion) and DKK 90 billion of capital is committed through 2026–27 to fund an 8.1 GW offshore construction portfolio (3 projects / 2.5 GW expected to commission in 2026). Net interest‑bearing debt was DKK 22 billion (up DKK 0.7 billion q/q), FFO to adjusted net debt ≈45% (target >30%), liquidity reserve >DKK 115 billion, adjusted ROCE 6.6% (reported 3.1%); operationally offshore is expected higher than 2025, onshore in line, bioenergy & other now guided lower, and management intends to reinstate a dividend for FY2026 with first payout in 2027 (anticipating a starting level in the lower part of the DKK 2–5 per share analyst range).

Orsted Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

DE:D2G1 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MWH	66Neutral	$4.86B	62.35	19.16%	―	―	―
Sector *	66Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CWEN	65Neutral	$6.96B	45.30	1.96%	5.39%	7.99%	22.73%
BEPC	62Neutral	$5.67B	-1.18	243.54%	5.04%	-2.38%	-301.98%
RNW	60Neutral	$2.50B	20.97	9.00%	―	11.33%	30.86%
XIFR	41Neutral	$1.86B	5.09	4.68%	―	-1.14%	―

* Utilities Sector Average

Performance Comparison

DE:D2G1 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:D2G1	Orsted OTC	5.40	0.40	8.00%
CWEN	Clearway Energy	34.43	1.49	4.54%
XIFR	Xplr Infrastructure, Lp	8.15	-0.90	-9.94%
BEPC	Brookfield Renewable Corporation	30.75	-10.47	-25.40%
RNW	Renew Energy Global Plc	6.89	-0.62	-8.26%
MWH	Solv Energy	26.81	-3.86	-12.59%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Orsted AI Stock Analysis