EDP Renováveis (EDPR) Q1 2026 earnings summary

Executive summary

• Recurring EBITDA for Q1 2026 reached €489 million, up 2% year-on-year or 10% excluding FX, with recurring net profit at €71 million, up 9% year-on-year or 21% excluding FX, driven by capacity growth and efficiency gains.

• 2 GW of gross capacity added over the last 12 months, bringing installed capacity to 20.5 GW, with over 90% of 2026 target already installed or under construction.

• Generation increased to 11.3 TWh, with 80–82% of output long-term contracted or hedged, supporting a low-risk earnings profile.

• Strong operational efficiency with recurring core OpEx down 11% year-on-year and improved productivity metrics.

• Upgraded 2026 EBITDA guidance by 5% to €2.2 billion, driven by higher asset rotation gains, efficiency, and favorable macro context.

Financial highlights

• Electricity sales decreased 5% year-on-year to €591 million, mainly due to lower prices in Europe and USD devaluation.

• Average selling price declined 9–14% year-on-year to €52–52.3/MWh, primarily in Europe.

• Recurring EBITDA reached €489 million, up 2% year-on-year or 10% excluding FX.

• Organic cash flow was €142 million, up 1% year-on-year; net debt increased to €8.4 billion due to expansion investments.

• Financial results improved by €13 million year-on-year due to lower average net debt and interest rates.

Outlook and guidance

• 2026 EBITDA guidance upgraded to €2.2 billion, reflecting improved asset rotation gains and operational efficiency.

• Over 60% of 2026–28 capacity additions target (5 GW) already secured, with annual targets for 2026 fully secured and 2027 80% secured.

• Net debt expected to trend down, with 2028 projected €1.5 billion below 2025, subject to asset rotation and portfolio optimization.

• No plans for equity raise; asset rotation and disposals to optimize balance sheet.

• Improving visibility on asset rotation and disposals execution for 2026–28, with strong development pipeline in the US and Europe.