EDP Renováveis (EDPR) Investor presentation summary

Portfolio and growth strategy

• Operating a diversified 20.4 GW portfolio in wind, solar, and BESS, with 85% in the US and Europe and about 70% long-term contracted.

• Plans to add 5 GW of capacity between 2026-28, mainly solar and BESS, with flexible pipeline for further growth post-2028.

• Over 60% of 2026-28 capacity additions already secured, with a strong focus on US, Europe, and low-risk APAC markets.

• Gross investments of ~€7.5bn planned for 2026-28, with ~60% allocated to the US and a target net debt reduction of €1.5bn.

• Asset rotation and disposals in non-core markets optimize capital and reinforce focus on A-rated countries.

Financial performance and guidance

• Upgraded 2026 EBITDA guidance by 5% to ~€2.2bn, driven by improved asset rotation gains and efficiency.

• Recurring net profit expected to double from €0.3bn in 2025 to ~€0.6bn in 2028, with a payout ratio of 30-50%.

• Core OPEX per MW targeted to remain flat through 2028, despite inflation and asset growth.

• Net debt expected to decrease from €8.1bn in 2025 to ~€6.5bn in 2028, supported by strong cash flow and disciplined investment.

• Enhanced returns with equity IRR of 13-15% in the US and 12-13% in Europe for 2026-28 projects.

Market context and regional outlook

• US and Europe represent ~95% of 2026 target capacity additions and investments, focusing on low-risk, high-growth markets.

• US electricity demand expected to grow 2-3% CAGR (2025-35), with renewables making up 80% of new capacity additions.

• Over 20 GW pipeline in the US and 15 GW in core European markets, with strong demand from data centers and electrification trends.

• APAC and offshore strategy centers on disciplined growth in low-risk markets, leveraging partnerships and limited short-term capital needs.

• Renewables now form the backbone of Europe’s energy independence, with supportive regulation and high penetration in the generation mix.