EDP Renováveis (EDPR) Q3 2025 earnings summary

Executive summary

• Recurring net profit rose 5% year-over-year to EUR 974 million, driven by strong wind and solar capacity, increased generation, and resilient electricity networks.

• Wind and solar underlying EBITDA increased 21% year-over-year, with 19.8 GW installed capacity and 14% generation growth.

• Integrated Iberian business faced higher sourcing costs and lower contracted prices, impacting year-over-year comparisons.

• Efficiency improvements continued, with lower costs and better productivity metrics.

• Revenues rose 16% year-over-year to €2bn, mainly from capacity additions and operational efficiencies.

Financial highlights

• EBITDA reached EUR 3.7 billion, up 2% year-over-year (4% excluding FX), with strong wind and solar performance offsetting declines in hydro and network segments.

• Asset rotation gains were EUR 55 million versus EUR 250 million last year at EBITDA level, highlighting robust underlying performance.

• Net debt stood at EUR 17.3 billion, up from EUR 15.6 billion at year-end 2024, reflecting investment execution and dividend payments.

• Recurring net profit was EUR 974 million, a 5% increase year-over-year, with reported net profit at EUR 952 million after negative impacts of EUR 22 million.

• Recurring EBITDA increased 9% YoY to €1,405m, and recurring net profit was €189m, reflecting improved underlying business despite lower asset rotation gains.

Outlook and guidance

• Recurring EBITDA for 2025 expected around EUR 4.9 billion, with segment contributions: integrated generation supply EUR 1.4 billion, wind and solar EUR 1.9 billion, and electricity networks EUR 1.5 billion.

• Recurring net profit guidance at approximately EUR 1.2 billion, impacted by higher cost of debt and timing of asset rotation and tax equity proceeds.

• Net debt forecasted near EUR 16 billion by year-end, assuming EUR 2 billion in asset rotation and EUR 1 billion in tax equity proceeds.

• Capacity under construction at 2.3 GW supports ~2 GW of expected additions in 2025, on track and on budget.

• Asset rotation and tax equity proceeds expected to be concentrated in Q4.