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.

• 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, with €119m in gains, mainly in Europe, reflecting robust investor demand.

• Maintained financial discipline, reducing net debt to €8.1bn and improving net debt/EBITDA ratio from 4.9x to 4.1x.

• Electricity generation growth offset a 10% decline in average selling price, with efficiency gains and a proposed 40% payout scrip dividend.

Financial highlights

• Underlying recurring EBITDA reached €1.9bn, up 23% year-on-year, and recurring EBITDA margin improved to 73%.

• Electricity sales increased 1% to €2.15bn, with installed capacity up 6% to 20.4 GW.

• Tax equity revenues rose to €421m, driven by solar additions and US institutional partnerships.

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

• Gross investments totaled €2.4bn, with 55-58% in North America and 25-27% in Europe.

Outlook and guidance

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

• 1.5 GW of capacity additions for 2026 already secured, with over 80% under construction.

• Asset rotation gains for 2026 guided at €0.2bn, with proceeds around €1.5bn.

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

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