George Ciubotaru, vice president of the Board of Directors of Electro-Alfa International
Electro-Alfa’s recent stock offering was oversubscribed, and the money obtained through the public offering (IPO) will be used for an unprecedented expansion.”As a strategic priority, we will continue to consolidate our position in the energy infrastructure in Romania, where we are already one of the main manufacturers of electrical equipment, with an estimated market share of over 32%. The funds raised through the IPO will be used primarily for strategic acquisitions such as Elcomex and Spiact Craiova and Electro Alfa CM. We will continue to expand on foreign markets. We are looking with interest at Ukraine and the Republic of Moldova,” said George Ciubotaru, vice president of the Board of Directors of Electro-Alfa International for Energynomics.
What will be the main growth directions of Electro-Alfa in the coming period? How do you comment on the oversubscription and what will be the main investments? What funds will you attract from banks? But through European projects?
In the coming period, our growth directions are very clear and are built on a strategic plan with objectives set until 2030. We are in a sector undergoing accelerated transformation, and for us growth means both consolidation in markets where we already have a strong position, and expansion into new, geographical and technological areas.
As a strategic priority, we will continue to strengthen our position in the energy infrastructure in Romania, where we are already one of the main manufacturers of electrical equipment, with an estimated market share of over 32%. Our business model is integrated, from design and production to installation and maintenance, which allows us to manage complex projects and deliver complete solutions. We will invest in expanding production capacities, in digitalization, in automation and in developing internal skills, because the pace of modernization of the energy infrastructure and integration of renewable sources will continue to increase.
Another important direction is the area of mergers and acquisitions. The funds raised through the IPO will be used primarily for strategic acquisitions such as Elcomex and Spiact Craiova and Electro Alfa CM. By integrating Elcomex, we are strengthening our presence in the area of maintenance and electrical installations, including in the nuclear field, which is a strategic segment for Romania. Through Spiact, we are expanding our presence in the railway infrastructure, a sector that will benefit from substantial investments in the coming years. These acquisitions increase our technical capabilities, diversify our portfolio and give us access to projects of regional scope.
We will continue to expand on foreign markets. We are looking with interest at Ukraine and the Republic of Moldova, where the modernization and reconstruction of the energy infrastructure will create important opportunities. At the same time, we are analyzing concrete opportunities to strengthen our position on these markets. Exports currently represent approximately 22–23% of revenues and we want to increase this share in a sustainable way.
Regarding the oversubscription, it represented for us a very strong signal of confidence from investors. The fact that we chose to list the company exclusively through a capital increase, without an exit for existing shareholders, shows that we are going to the market with a clear objective, which is to secure new financial resources to support growth plans. It is not a liquidity exercise for shareholders, but one of growth.
The main investments will therefore go in three directions: the integration and development of acquired companies, the expansion of production capacities and the launch of new projects.
Regarding bank financing, we already collaborate with financial institutions and will continue to use credit instruments for working capital and for co-financing large projects. Therefore, we maintain strict financial discipline, limit exposure to a single client to a maximum of 10% and use the optimal mix between equity and bank financing.
Regarding European funds, they have had and will continue to have an important role in the modernization of energy infrastructure. We do not view them as an end in themselves, but as an accelerator. Many distribution projects, stations, renewables integration or railway infrastructure are supported by European funding, and we are well positioned to participate in these programs thanks to our certifications, execution capacity and accumulated experience. In addition, in possible programs dedicated to regional reconstruction, our skills can be leveraged on a larger scale. Listing on the stock exchange is a natural step in a stage of maturity of the company and gives us the necessary tools to accelerate this growth in a responsible and sustainable way.
What were the main results of 2025? What are the targets for 2026?
In 2025, for us it was a year of consolidation and acceleration. We estimate revenues of over 800 million lei, an EBITDA of over 100 million lei and a gross profit of approximately 100 million lei, specifying that these represent estimated, unaudited and unrevised financial information. We grew both in the electrical equipment production segment and in the EPC services area, including in foreign markets, and we maintained a market share of over 32% in the main segment in Romania.
The main KPIs pursued and achieved in 2025 were the growth of revenues and EBITDA, the improvement of operating margins, financial discipline and working capital control and the diversification of the customer portfolio.
For 2026, our goal is sustainable growth, based on the integration of acquisitions, maintaining a solid EBITDA margin, optimizing cashflow and increasing external presence.
How did the EPC segment for the green sector evolve in 2025? What about the large energy infrastructure works? How do you see the future of these two segments in 2026?
In 2025, the EPC segment for the green sector continued to grow, but at a steadier pace compared to previous years, when the photovoltaic market had a very accelerated expansion. We saw a maturation of projects, more well-structured investments, with clear financing and a focus on grid integration. For us, this meant more complex projects, which included not only the installation of production capacities, but also automation solutions, connection and, increasingly, storage components.
In parallel, the segment of large energy infrastructure works, transformer stations, network modernizations, medium and low voltage equipment, had a very solid evolution in 2025. Investments by distributors and transmission operators continued, supported both by own sources and by European funds. For us, this segment remains a strategic pillar, because here our integrated model, from production to execution and maintenance, generates real added value and healthy margins.
For 2026, I believe that both segments will remain relevant, but with different dynamics. The green zone will be increasingly linked to flexibility and balancing, so we will see an increase in projects that include storage and hybrid solutions. The number of installed megawatts will no longer be enough; the difference will be made by their efficient integration into the system.
Regarding large infrastructure, I expect a sustained pace of investments. Modernizing networks is no longer optional, but necessary for energy security and the integration of renewables. Here we see continuity and perhaps even acceleration, especially in a regional context.
What are the main problems in the electricity market? Why do we have high prices, despite the entry of new capacities into the market?
The electricity market is going through a period of profound transformation, and the main problems are less related to the lack of installed capacities and more to the way the system works as a whole.
First, we have a problem of volatility. The entry of new capacities into the market, especially renewable ones, does not automatically mean energy available at all times. Solar and wind production is variable, and without sufficient storage capacities or flexible plants to balance the system, imbalances appear. During hours of high production, prices may fall, but at times when the wind is not blowing or the sun is not shining, the system becomes dependent on more expensive sources, and prices rise.
Second, the transmission and distribution infrastructure has not been modernized everywhere at the same pace as new investments in production. If the networks are not sufficiently robust or interconnected, energy cannot be transported efficiently from surplus areas to deficit areas. This generates congestion and additional costs that are reflected in the price.
Another important factor is the structure of the European market. Romania does not operate in isolation, but in a single market, where prices are influenced by regional developments, from the cost of gas to geopolitical situations or imbalances in other states. Even though we have a diversified energy mix domestically, nuclear, hydro, gas, renewables, the price is influenced by the European context.
Also, financing costs and balancing costs have increased. New capacities require large investments, and capital is no longer as cheap as it was a few years ago. In addition, the more the share of renewables increases, the more relevant the costs for system and balancing services become.
Therefore, the fact that new capacities are entering the market is a positive and necessary thing, but it is not enough. To see a real stabilization of prices, coherent investments in networks, including storage and plants capable of reacting quickly, and legislative predictability are needed. The energy system must be viewed as a whole. If we invest only in one segment without consolidating the others, imbalances appear that are inevitably reflected in the price.
What were the biggest challenges of the managerial process within the company?
One of the biggest challenges was managing very rapid growth. At a time when the volume of projects is increasing rapidly, the pressure on working capital, teams and processes becomes significant. We had to find the balance between market opportunities and financial discipline, so as to maintain long-term stability.
Another important challenge was the development of human resources. In a technical sector, where skills are essential and specialized labor is limited, investment in training and team strengthening was critical. We have focused on standardization, streamlining processes and building clear control and reporting mechanisms to support growth in a sustainable way.
In parallel, the complexity of projects has increased, and the integration of new activities and preparation for regional expansion have brought an additional level of responsibility. The constant challenge is to grow at an ambitious but controlled pace, while maintaining strategic coherence and financial stability.
