EDP Renováveis (EDPR) Q4 2024 earnings summary

Executive summary

• Achieved record annual capacity addition of 3.8 GW in 2024, bringing total installed capacity to 19.3 GW (+17% YoY), mainly in solar and storage, with 85% of new capacity in Europe and the US.

• Renewable generation rose 6% year-on-year to 36.6 TWh, slightly above target, despite renewable resources 2pp below long-term average.

• Recurring EBITDA reached €1.7 billion, up 9% year-on-year, but recurring net profit was €221 million, impacted by lower asset rotation gains and higher financial costs.

• Ongoing efficiency programs reduced adjusted core OpEx per average MW by 9% year-on-year.

• Strategic focus for 2025–2026 on efficiency, cost optimization, and selective growth.

Financial highlights

• Revenues increased 4% year-on-year to €2,320 million, with electricity sales at €2.2 billion; average selling price declined 3% to €58.9/MWh, mitigated by hedging and stable U.S. pricing.

• Net debt rose to €8.3 billion, mainly due to €2.8 billion net expansion investments and €4 billion expansion CapEx.

• Asset rotation proceeds totaled €1.5 billion from 1 GW rotated; tax equity proceeds reached $1.2 billion.

• Non-recurring items totaled €777 million at net profit level, mainly from Colombia and U.S. offshore impairments.

• Operating costs decreased 2% year-on-year to €981 million; recurring EBITDA margin was 73–77%.

Outlook and guidance

• Moderating investment pace to 3.5 GW of new capacity over 2025–2026, prioritizing returns over volume, with over 90% of 2025 additions under construction.

• Targeting 2.5 GW of asset rotation in 2025–2026, expecting over €3 billion in proceeds.

• Focus on high profitability projects, hybrid initiatives, and battery storage investments.

• Scrip dividend program to continue with a 40% payout ratio (€0.08/share max).