EDP (EDP) H2 2025 earnings summary

Executive summary

• Recurring EBITDA reached €5.03 billion in 2025, up 1% year-over-year and above guidance, driven by strong Q4 performance in Iberia, record renewables capacity additions, and FlexGen & Clients strength.

• Recurring net profit was €1.3 billion, above guidance but down 8% from 2024 due to higher financial expenses.

• Net debt ended at €15.4 billion, outperforming guidance, supported by strong operational cash flow and disciplined capital allocation.

• Dividend per share proposed at €0.205, a 2.5% increase, to be paid in 2026 subject to shareholder approval.

• 2025 marked by extreme weather in Portugal, causing significant infrastructure damage but rapid recovery and community support.

Financial highlights

• Recurring EBITDA up 1% year-over-year; underlying growth of 7% excluding asset rotation and FX.

• Recurring net profit down 8% year-over-year, mainly due to higher financial costs.

• Reported net profit at €1.15 billion, up 44% year-over-year, reflecting non-recurring items and EDPR rebound.

• Recurring OpEx decreased 2% year-over-year, with efficiency gains offsetting inflation.

• Net financial costs rose to €989 million, mainly from higher debt costs in Brazil and lower capitalizations.

Outlook and guidance

• 2026 recurring EBITDA guided at €4.9–5.0 billion, with balanced contributions from networks, EDPR, and FlexGen & Clients.

• Recurring net profit guidance for 2026 reaffirmed at €1.2–1.3 billion.

• 2028 targets reiterated: €5.2 billion recurring EBITDA and €1.3 billion recurring net profit.

• Gross investments of €12 billion planned for 2026–2028, funded by €6 billion in asset rotations and disposals.

• Dividend payout ratio targeted at 60–70% for 2026–2028.