EDP Renováveis returns to profit with €216 million in 2025

After heavy extraordinary losses in 2024, with the exit from operations in Colombia and offshore in the US leading to losses of €556 million, EDP Renováveis returned to profit last year, with a net result of €216 million.

In recurring terms, the result was €330 million in 2025, 50% more than in the same period last year, an improvement “supported by the strategy of concentrating growth in low-risk markets, particularly the US and Europe”, the company said in a statement.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to €1.97 billion on a recurring basis, up 17% on 2024.

Electricity generation increased by 11% to 40.6 TWh, as a result of a 14% increase in average installed capacity. The average selling price fell by 10% to €53/MWh, impacted by price normalisation in Europe. Revenues rose by 16% to €2.68 billion.

Operating costs, which include external supplies and personnel costs, increased by 8% to €1.061 billion. Financial expenses increased by 29% to €482 million — a development that the company justifies with the higher average amount of debt, which was €1.5 billion higher than the previous year. “The average cost of debt remained stable at 4.5%”, it notes.

EDP Renováveis’ total investment fell by 35% last year to €2.225 billion. The largest share (58%) went to North America, followed by Europe (27%), South America (7%) and Asia-Pacific (7%).

Net financial debt fell by €169 million during the past year to €8,109 million, equivalent to 4.1 times recurring EBITDA for the last 12 months.

Looking ahead to this year, EDPR states that “the successful execution in 2025 of the strategy of focusing on low-risk markets and improving debt ratios supports the expectation of recurring EBITDA of around €2.1 billion in 2026, as well as increased visibility of the execution of the 2026-28 Business Plan targets”.

Shareholders receive a dividend of 13 cents with new shares

The electricity company will propose to the general meeting the distribution of 40% of the net profit obtained in 2025. The €132 million in dividends, equivalent to 13 cents per share, will be paid through the delivery of new securities. Shareholders may, however, choose to resell the shares received to EDP Renováveis itself, at a guaranteed fixed price.

“The optional dividend replaces the ordinary dividend for the 2025 financial year, through the issue of new fully paid-up shares, while maintaining the option for shareholders to receive the amount in cash”, EDP Renováveis said in a statement.

In practice, EDP Renováveis (EDPR) shareholders will receive rights to incorporate the new shares to be allocated in the form of a cash dividend, with one right for each share held. They then have three options, which they can use individually or in combination:

→ Not to sell all or part of their incorporation rights to EDPR or on the Euronext Lisbon market. In this case, at the end of the trading period, shareholders will receive the corresponding number of new fully paid-up shares, in accordance with the incorporation rights held.

→ Sell all or part of the incorporation rights initially allocated to EDPR at a guaranteed fixed price. Shareholders who choose this alternative will receive cash remuneration for the rights sold, instead of new shares. Merger rights acquired on the Euronext Lisbon market may not be sold to EDPR.

→ Sell all or part of their incorporation rights on the Euronext Lisbon market. Shareholders who choose this option may also monetise their rights, receiving cash compensation corresponding to the respective market price.

The shareholder remuneration programme and its terms are subject to approval at the general meeting. The launch must take place within a maximum of one year after receiving the green light from shareholders.

On Tuesday, EDP, which holds 71.3% of EDPR’s capital, informed the market that it “intends to opt to receive EDPR shares under this programme and, as such, not to sell the incorporation rights allocated to it”.

“This intention reflects the strategic importance that EDPR continues to have for EDP and for the execution of its business plan, giving priority to reinvesting cash flow in profitable growth”, it adds.