Greencoat Renewables (GRP) H1 2025 earnings summary

Executive summary

• Gross cash generation for H1 2025 was €68.7 million, supporting a 1.8x gross dividend cover and €37.7 million in dividends paid, despite historically low wind speeds and moderating power prices.

• Over €100 million of capital was recycled in the last 12 months through disposals at a premium to NAV, including a €156 million sale of six Irish assets at a 4% premium, with proceeds used for debt repayment.

• NAV per share declined to 101.0c, mainly due to asset revaluations, P50 revisions, and lower power prices in mainland Europe.

• The business is strategically focused on capitalising on the European energy transition and emerging AI-driven demand, especially in Ireland.

• Shareholders reaffirmed support for the business model at the May AGM despite short-term share price underperformance.

Financial highlights

• Net cash generation for H1 2025 was €64.9 million, with a resilient EBITDA margin of 56% and revenue of €160.3 million.

• EBITDA fell to €89.9 million from €145.3 million year-over-year, with gross cash generation down 40% and net cash generation down 41% year-over-year.

• NAV per share dropped by 9.5c, primarily due to asset revaluations and power price movements.

• 76% of revenue is contracted through 2029, supporting stable cash flows.

• Asset disposals totaling €156 million are reflected in the fair value of investments, with gearing at 51.8% pro forma for disposals.

Outlook and guidance

• Strong contracted cashflows (76% of 2025–2029 revenues) underpin predictable dividends, with illustrative net dividend cover of 1.5x out to 2029.

• The business is focused on disciplined capital allocation and sees significant growth opportunities in the convergence of digital and power sectors, especially with AI/data center demand.

• On track to meet the 2025 target dividend of 6.81c per share.

• European interest rates are on a downward trajectory, supporting renewables investment.

• EU policy targets and rising demand for renewables, especially from data centers, underpin long-term sector attractiveness.