Market sentiment toward Danish energy giant Ørsted is shifting positively, buoyed by the completion of its divestment strategy and a return to profitability. This renewed optimism was underscored this week by a significant price target upgrade from the investment bank Berenberg. The move highlights growing analyst conviction in the company’s ongoing strategic realignment.
A Vote of Confidence from Berenberg
In a notable endorsement, Berenberg has raised its price target for Ørsted shares from 140 to 180 Danish kroner, reiterating its ‘Buy’ recommendation. Reported yesterday, this adjustment reflects the bank’s increased confidence in the tangible progress of Ørsted’s corporate restructuring. Furthermore, Berenberg has now included Ørsted among its preferred utility sector picks, signaling a broader renewed focus on the offshore wind industry.
2025 Results: A Return to Profitability
The foundation for this reassessment was laid by Ørsted’s full-year 2025 figures, released in early February. The company reported an adjusted EBITDA (excluding new partnership agreements and cancellation fees) of DKK 25.1 billion, landing within its guided range of DKK 24 to 27 billion. Crucially, Ørsted posted an annual net profit of DKK 3.2 billion, marking a definitive return to the black following a loss-making 2024.
Performance in the offshore segment demonstrated resilience. Despite less favorable wind conditions compared to the previous year, earnings from offshore assets climbed to DKK 24.3 billion, an increase of approximately DKK 0.5 billion. The company cited several contributing factors, including higher asset availability, the ramp-up of the Gode Wind 3 site, and compensation payments related to a grid connection delay for the Borkum Riffgrund 3 project in Germany.
Looking ahead to 2026, Ørsted has provided an adjusted EBITDA forecast (also excluding new partnerships and cancellation fees) exceeding DKK 28 billion. Gross investments are projected to be between DKK 50 and 55 billion. In a significant move for shareholders, the group announced its intention to resume capital returns to investors in 2026—the first such distribution since 2023.
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Strategic Execution and Legal Headway
A core element of Ørsted’s strategy, its divestment program, was concluded ahead of schedule. The company has agreed to sell its entire European onshore business to Copenhagen Infrastructure Partners (CIP) for a transaction value of €1.44 billion (DKK 10.7 billion). Pending regulatory approvals, the deal is expected to close in the second quarter of 2026.
Cumulatively, from 2025 to 2026, Ørsted has signed transactions generating proceeds of around DKK 46 billion, surpassing its target of more than DKK 35 billion for the period. The company’s capital structure was further bolstered by a rights issue.
Positive developments have also emerged in the United States. Following suspension orders issued by the Bureau of Ocean Energy Management (BOEM) for the Revolution Wind and Sunrise Wind projects in late December, the project companies pursued legal action. The U.S. District Court in Washington, D.C., granted preliminary injunctions in January and early February, respectively. Consequently, both projects have resumed affected work while legal proceedings continue.
Ørsted’s share price has responded to these developments, advancing approximately 17.1% since the start of the year to reach DKK 155.05 as of yesterday. The market now looks toward the anticipated closure of the European onshore business sale in Q2 2026 as the next key milestone, alongside the 2026 financial guidance and the promised reinstatement of investor capital returns.
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