Landsnet Powers Up for the Future: A Landmark Year of Investment and Stability in 2025!

Today, February 24th, Landsnet’s Board of Directors proudly approved the company’s Annual Financial Statements for 2025, revealing a truly exceptional year. Despite navigating various challenges, Landsnet delivered stable operations and achieved significant milestones, marking it as one of the largest investment years in the development of Iceland’s critical electricity transmission system.

Key Highlights from a Record-Breaking Year:

• A monumental investment year, with approximately USD 118 million poured into strengthening the transmission system across the country.
• Profit from core operations reaching USD 44.9 million, a solid increase of USD 1.8 million year-on-year.
• Demonstrated stable operations and a robust financial position, crucial for sustained future growth.
• A proposal for dividend payments of USD 22.5 million to owners, reflecting the company’s strong performance.

Strategic Investments for a Stronger Grid

Ragna Árnadóttir, CEO of Landsnet, eloquently captured the essence of 2025:

“The year 2025 was one of the company’s largest investment years in the development of the transmission system. Emphasis was placed on strengthening the transmission system alongside necessary maintenance work across the country. The largest construction project of the year was the connection of Vestmannaeyjar to the grid through the installation of two new submarine cables, and the project was successfully completed. An important step was also taken to enhance security of supply and delivery capacity in Northeast Iceland with the signing of a letter of intent on measures to strengthen the power system in the region. Electricity demand is expected to increase in the long term, and the energy transition calls for a more robust and flexible grid. Our role is to ensure that the transmission system supports this development through reliable infrastructure. With stable operations and clear project prioritisation, Landsnet is well positioned to strengthen the grid and create value for society and the economy.”

This commitment to infrastructure development is vividly demonstrated by projects such as the successful connection of Vestmannaeyjar to the main grid with two new submarine cables and crucial steps taken to enhance supply security in Northeast Iceland. These initiatives are fundamental to meeting Iceland’s escalating electricity demand and facilitating the ongoing energy transition.

Prioritizing Security and Resilience

Given Iceland’s isolated power system, its security and resilience are paramount. In 2025, Landsnet intensified its focus on reinforcing critical infrastructure and implementing systematic maintenance programs. The overarching goal? To guarantee robust security of supply under a diverse range of circumstances.

Ragna Árnadóttir further emphasized the broader implications:

“When assessing Iceland’s competitiveness, it is essential to consider the total cost of electricity, security of supply and the resilience of the system. The transmission system must be capable of withstanding shocks without external support. Its secure and stable operation is a prerequisite for the development of society and the economy.”

Maintaining a delicate balance between essential system development, ensuring security of supply, and upholding economic competitiveness remains a core challenge, particularly in light of future investment requirements under the regulatory framework.

A Strong Financial Footing for Future Growth

Landsnet’s financial performance in 2025 was robust, providing a solid foundation for continued development:

• Profit for the year: USD 44.9 million (a healthy increase from USD 43.1 million in 2024).
• Total assets at year-end: USD 1,371.6 million.
• Equity: USD 665.5 million, reflecting a strong and healthy balance sheet.
• Cash generated from operating activities: USD 97.7 million.
• Equity ratio: Improved to 48.5% at year-end (up from 46.5% in 2024).

Operating revenues experienced a healthy increase to USD 208.3 million (from USD 189.0 million in the previous year), reflecting strong performance across its four main revenue streams. Despite the appreciation of the Icelandic króna, Earnings Before Interest and Taxes (EBIT) rose to USD 76.9 million, an increase of USD 6.4 million.

The proposed dividend payment of USD 22.5 million further underscores the company’s financial health and its commitment to delivering value to its owners.

Looking Ahead: Powering Iceland’s Future

Landsnet’s 2025 performance reaffirms its crucial role in Iceland’s infrastructure and economy. With stable operations, strategic investments, and a strong financial position, the company is exceptionally well-prepared to navigate future challenges and continue strengthening the transmission system to support Iceland’s energy transition and socio-economic development for years to come.

For a comprehensive understanding of the year’s performance, including the full Annual and Sustainability Report, please visit www.landsnet.is.

Source: Original Article