EDP (EDP) Q1 2025 earnings summary

Executive summary

• Net profit increased 19% year-over-year to €439 million in 1Q25, driven by strong integrated Iberian business, flexible generation, and efficiency gains.

• Recurring EBITDA rose 6% year-over-year to €1.4 billion, supported by renewables expansion, improved power prices, and resilient networks.

• Integrated Iberian business benefited from high hydro resources (+42% above average), strong reservoir levels (~93% in May), and increased demand for flexibility services.

• OPEX decreased 2% year-over-year, with real terms down 8% versus Q1 2023, despite 11% growth in installed capacity.

• Share buyback program of €100 million completed in April 2025 at an average price of €2.89/share.

Financial highlights

• Recurring EBITDA reached €1.4 billion, up 6% year-over-year, or 8% excluding forex impact.

• Underlying net profit (excluding capital gains) surged 69% year-over-year.

• Organic cash flow was €0.8 billion in Q1 2025, €0.1 billion above Q1 2024.

• Net debt stood at €16.1 billion at Q1 2025, with solid credit ratios (FFO/net debt at 21.3%).

• Dividend of €0.20/share paid in May 2025, up 2.6% year-over-year, with a 60% payout ratio.

Outlook and guidance

• 2025 guidance reaffirmed: recurring EBITDA ~€4.8 billion, net profit ~€1.2 billion, net debt ~€16 billion.

• Integrated Iberian EBITDA guidance raised to €1.1–1.2 billion for 2025, reflecting strong Q1 and high reservoir levels.

• Asset rotation gains expected to be lower in 2025 versus 2024, with proceeds concentrated in 2H25.

• Strategic update for 2026 onwards to be provided at Capital Markets Day in November 2025.

• Capex slowdown aligns with moderated short-term investments and capacity additions for 2025-2026.