EDP (EDP) Q1 2026 earnings summary

Executive summary

• Q1 2026 performance was supported by new regulatory periods in Iberian networks and continued renewables growth, especially in the U.S., but offset by lower electricity prices in Iberia.

• Recurring EBITDA reached €1.4 billion, down 3% year-over-year, with recurring net profit at €399 million, down 9% year-over-year, reflecting challenging comparisons and lower prices.

• Strong cost discipline was maintained, with recurring OpEx down 4% year-over-year and 8% over two years.

• Upgraded 2026 guidance: EBITDA to €5.2 billion and net profit to €1.3 billion, a 5% increase, driven by broad-based improvements.

• Net debt rose to €15.7 billion, reflecting investment execution, organic cash flow, and FX impacts.

Financial highlights

• Recurring EBITDA: €1.4 billion, down 3% year-over-year; recurring net profit: €399 million, down 9% year-over-year; reported net profit: €378 million, down 12% year-over-year.

• Electricity networks EBITDA up 9% year-over-year, driven by Iberia (+16%) due to new regulatory periods.

• EDPR EBITDA up 2% year-over-year (10% excluding FX), mainly from U.S. capacity additions.

• FlexGen & Clients EBITDA down 15%–18% year-over-year, impacted by lower prices and higher ancillary costs in Iberia.

• Net financial costs increased to €253 million, with average cost of debt rising to 5.1%.

Outlook and guidance

• 2026 EBITDA guidance raised to €5.2 billion and net profit to €1.3 billion (+5% vs. previous guidance), reflecting improved fundamentals and visibility.

• Asset rotation and tax equity proceeds expected to be concentrated in H2 2026.

• Annual cash dividend payment of €0.85–0.9 billion scheduled for 2Q26.

• Liquidity position of €11.3 billion covers refinancing needs until 2028.

• Confident in delivering 2028 business plan targets, with strong demand growth and regulatory visibility.