EDP Renováveis (EDPR) Q4 2025 earnings summary

Executive summary

• Achieved a strong recovery in 2025, with recurring EBITDA of €2.0bn, up 17% year-on-year and above guidance, and recurring net profit of €330m, up 50% year-on-year.

• Net debt reduced to €8.1bn, improving leverage with net debt to recurring EBITDA ratio down to 4.1 from 4.9.

• Delivered 2 GW of gross capacity additions, mainly in North America and Europe, with generation up 11% to 40.6 TWh.

• Asset rotation proceeds reached €1.7bn, reflecting robust investor demand for high-quality assets.

• Maintained disciplined execution, cost efficiency, and set a constructive base for 2026.

Financial highlights

• Underlying recurring EBITDA reached €1.9bn, up 23% year-on-year.

• Recurring net profit rose fourfold to €330m, excluding capital gains.

• Electricity sales increased 1% to €2.15bn, with higher volumes offsetting lower prices.

• Core OpEx per average MW decreased 12% year-on-year, reflecting efficiency gains.

• Asset rotation gains totaled €119m, with €1.5bn proceeds from U.S. transactions.

Outlook and guidance

• 2026 guidance: recurring EBITDA of ~€2.1bn, supported by high single-digit generation growth and average selling price of €52/MWh.

• 1.5 GW of capacity additions for 2026 already secured, with >90% under construction by April.

• On track for 2028 targets: €2.2bn recurring EBITDA, €0.6bn recurring net profit, and 5 GW gross additions.

• 85% of 2026-2028 generation secured through long-term contracts or hedges, limiting merchant exposure.

• 2026-28 gross investments expected at ~€7.5bn.