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 was offset by lower electricity prices in Iberia.

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

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

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

• Net debt rose 2% from 4Q25 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 to €438 million, with Iberia up 16% to €265 million.

• FlexGen & Clients EBITDA down 15% year-over-year to €445 million, mainly due to lower electricity prices and higher ancillary service costs.

• EDPR (renewables) EBITDA up 2% year-over-year (10% excluding FX), driven by U.S. capacity additions and efficiency.

• Net operating costs fell 4% year-over-year, reflecting efficiency focus.

Outlook and guidance

• 2026 EBITDA guidance increased to €5.2 billion; net profit guidance raised to €1.3 billion (+5% vs. previous guidance).

• Annual targets for 2026 fully secured; 2027 80% secured at attractive risk/return metrics.

• Asset rotation and tax equity proceeds expected to be concentrated in 2H26.

• Maintaining 2028 net profit guidance with limited sensitivity to energy market fluctuations.

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