EDP (EDP) Q1 2026 earnings summary

Executive summary

• Q1 2026 performance was resilient, driven by new regulatory periods in Iberian networks and continued renewables growth in the U.S., but partially offset by lower electricity prices in Iberia.

• Recurring EBITDA reached €1.4 billion, down 3% year-over-year, and recurring net profit was €399 million, down 9% year-over-year, reflecting challenging price conditions and a strong prior-year comparison.

• Strong cost discipline was maintained, with recurring/adjusted OpEx down 4% year-over-year.

• Upgraded 2026 guidance: EBITDA to €5.2 billion and net profit to €1.3 billion, a 5% increase, driven by broad-based improvements.

• Net debt rose to €15.7 billion, reflecting investment execution, organic cash flow, and FX impacts.

Financial highlights

• Recurring EBITDA: €1.4 billion, down 3% year-over-year; recurring net profit: €399 million, down 9% year-over-year; reported net profit: €378 million, down 12% year-over-year.

• Net financial costs increased to €253 million, with average cost of debt rising to 5.1%.

• Net debt at €15.7 billion, with Net Debt/EBITDA at 3.4x and FFO/Net Debt at 20.5%.

• Recurring OpEx down 4% year-over-year, reflecting efficiency focus.

• Capex was €653 million, down 26% year-over-year, with networks capex up 70% and renewables capex down 47%.

Outlook and guidance

• 2026 EBITDA guidance raised to €5.2 billion and net profit to €1.3 billion (+5% vs. previous guidance), reflecting improved fundamentals across businesses and geographies.

• Asset rotation and tax equity proceeds expected to be concentrated in H2 2026.

• Annual targets for 2026 fully secured; 2027 80% secured at attractive risk/return metrics.

• Liquidity position of €11.3 billion covers refinancing needs until 2028.

• Maintaining 2028 net profit guidance with limited sensitivity to energy market fluctuations.