EDP Renováveis (EDPR) Q1 2026 earnings summary

Executive summary

• Recurring EBITDA for Q1 2026 reached €489 million, up 2% year-on-year or 10% excluding FX, with recurring net profit at €71 million, up 9% year-on-year or 21% excluding FX, driven by portfolio expansion and efficiency gains.

• 2 GW of gross capacity added over the last 12 months, bringing total installed capacity to 20.5 GW, with over 90% of 2026 target already installed or under construction.

• Generation increased to 11.3 TWh, with 80–82% of output long-term contracted or hedged, supporting a low-risk earnings profile.

• Operational efficiency improved, with recurring core OpEx down 11% year-on-year and OpEx per MWh and OpEx/gross profit ratios improving.

• Asset rotation proceeds from Greece and new US institutional partnerships contributed to cash flow and portfolio optimization.

Financial highlights

• Electricity sales decreased 5% year-on-year to €591 million, mainly due to lower prices in Europe and US dollar depreciation; excluding FX, revenues were stable.

• Average selling price declined 9–14% year-on-year to €52–52.3/MWh, mainly due to European price normalization.

• Recurring EBITDA reached €489 million, up 2% year-on-year or 10% excluding FX; recurring net profit was €71 million, up 9% year-on-year or 21% excluding FX.

• Financial costs improved by €13 million year-on-year, with average cost of debt reduced from 4.8% to 4.5%.

• Organic cash flow reached €142 million, up 1% year-on-year; net debt increased to €8.4 billion, up €0.3 billion since December, mainly due to expansion investments.

Outlook and guidance

• 2026 EBITDA guidance upgraded by 5% to €2.2 billion, driven by improved asset rotation gains, operational efficiency, and favorable macro context.

• Over 60% of the 2026–28 capacity additions target (5 GW) already secured, with annual targets for 2026 fully secured and 2027 80% secured.

• Comfortable with recurring net profit consensus for 2026 in the €400–450 million range.

• Net debt expected to be below December 2025 level (€8.1 billion) by year-end 2026, with further deleveraging projected through 2028.

• Improving visibility on asset rotation and disposals execution for 2026–28, with a strong development pipeline in the US and Europe.