EDP (EDP) H2 2024 earnings summary

Executive summary

• 2024 results exceeded guidance, with recurring EBITDA at €5 billion and recurring net profit up 8% to €1.4 billion, driven by strong performance in Iberia and Brazil, efficiency gains, and portfolio diversification.

• Full ownership of EDP Brasil post-buyout contributed positively, with Brazil showing record results and 7% electricity demand growth.

• Efficiency measures led to a 4% reduction in OPEX despite record capacity additions.

• Investment pace moderated for 2025–2026, with a 22% reduction in annual investment and focus on maximizing returns and capital allocation to networks.

• Shareholder remuneration improved with a proposed €0.20/share dividend, a 60% payout ratio, and a €100 million share buyback program.

Financial highlights

• Recurring EBITDA stable at €5 billion (-1% YoY); recurring net profit up 8% to €1.4 billion; net debt at €15.6 billion (+2% YoY); FFO/net debt at 21.5%.

• OPEX down 4% YoY to €1.92 billion; installed capacity up 9% to 29.1 GW.

• Electricity networks EBITDA grew 6–7% YoY, now 33–40% of group EBITDA, driven by Brazil and regulatory updates.

• Wind & Solar EBITDA down 9–16% YoY due to lower asset rotation gains; underlying EBITDA up 9% on higher output.

• Hydro generation up 16–21% YoY, with reservoirs above average.

Outlook and guidance

• 2026 guidance reiterated: EBITDA €4.9–5 billion, net income €1.2–1.3 billion, net debt ~€16 billion, FFO/net debt ~20%.

• Capacity additions to slow: ~2 GW in 2025, ~1.5 GW in 2026, prioritizing high-return, low-risk projects.

• Dividend per share to increase to €0.20 in 2025, with a €100 million share buyback program.

• Commitment to maintain BBB credit rating and financial discipline.