EDP (EDP) CMD 2025 summary

Strategic vision and market trends

• Plans €12 billion investment through 2028, focusing on US renewables and Iberian networks, with €7 billion net investment after asset rotation and disposals.

• Sees strong demand growth from electrification, data centers, and EVs, driving 2–3% annual demand growth in Iberia and globally, with renewables, wind, solar, and battery storage as key scalable, cost-competitive sources.

• Expects a wave of network modernization in Portugal, Spain, and Brazil, with 25% of transformers over 40 years old and 40–55% investment increase to reinforce reliability.

• Regulatory clarity and incentives in the US, Iberia, Europe, and Brazil underpin confidence in long-term planning and investment returns.

• Maintains commitment to net zero by 2040, with ongoing ESG focus, digitalization, operational efficiency, and coal phase-out by 2025.

Financial guidance and capital allocation

• Targets €5.2 billion EBITDA and €1.3 billion net profit by 2028, with a 4–8% CAGR in earnings since 2019 and a €1 billion net debt reduction.

• Dividend per share floor to rise to €0.21 by 2028, with a payout ratio of 60–70%.

• Net debt to EBITDA to improve from 3.7x (2019) to 3.2x (2028), with net debt reduced from €16 billion to €15 billion.

• 60% of renewables investment allocated to the US, up from 50%, and 30% of total CapEx to networks.

• Asset rotation proceeds of €5 billion (2026–2028), mainly from renewables, plus €1 billion in disposals and €1.5 billion in US tax equity funding.

Portfolio and operational efficiency

• Portfolio is highly resilient, with ~80% of EBITDA from A-rated markets and ~80% from regulated or long-term contracted/hedged activities.

• Operational excellence initiatives aim to keep OPEX flat despite inflation and asset growth, targeting ~26% OPEX/gross profit and leveraging digital and AI capabilities.

• Asset rotation strategy has delivered €13 billion in proceeds over 10 years, with a continued focus on derisking and value crystallization.