EDP (EDP) H2 2025 earnings summary

Executive summary

• Recurring EBITDA reached €5.03 billion in 2025, up 1% year-over-year and above guidance, driven by strong Q4 performance in Iberia, record renewables capacity additions, and FlexGen & Clients strength.

• Recurring net profit was €1.3 billion, above guidance but down 8% from 2024 due to higher financial expenses; reported net profit rose 44% year-over-year to €1,150 million.

• Net debt ended at €15.4 billion, outperforming guidance, supported by strong operational cash flow and disciplined balance sheet management.

• Dividend proposal increased to €0.205 per share, up 2.5% versus guidance, to be paid in 2026.

• Severe storms in Portugal caused significant infrastructure damage, requiring €80 million in CapEx for rebuilding, partially covered by insurance, with full customer restoration achieved.

Financial highlights

• Recurring EBITDA up 1% year-over-year; underlying growth 7% excluding asset rotation and FX.

• Recurring net profit down 8% year-over-year, mainly due to higher financial costs; underlying net profit (excluding asset rotation and FX) rose 3% year-over-year.

• Net debt at €15.4 billion, with FFO/net debt at 21%.

• Organic cash flow reached €3.3 billion, up €0.5 billion year-over-year.

• Gross investments totaled €3.9 billion, mainly in renewables and networks.

Outlook and guidance

• 2026 recurring EBITDA guided at €4.9–5.0 billion, with balanced contributions from networks, renewables, and FlexGen & Clients.

• Recurring net profit guidance for 2026 reaffirmed at €1.2–1.3 billion.

• 2028 targets reiterated: €5.2 billion recurring EBITDA and €1.3 billion recurring net profit.

• €12 billion gross investments planned through 2028, funded by €6 billion in asset rotations/disposals.

• Dividend payout ratio targeted at 60–70% for 2026–2028.