Greencoat Renewables PLC (LSE:GRP) (H1 2026) Earnings Call Highlights: Strong Dividend Cover, ...

Release Date: September 14, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Greencoat Renewables PLC ( LSE:GRP ) reported strong net cash generation of EUR60 million in H1 2026, underpinning a net dividend cover of 1.6x, well above the 1.2x guidance for the full year.

• The company has completed its initial EUR25 million buyback and announced a second EUR25 million tranche, funded from existing cash and accretive to shareholders at an average discount of 23%.

• Greencoat Renewables PLC ( LSE:GRP ) has a solid debt structure with 89% fixed-rate debt, a low weighted average cost of 3.5%, and no maturities until March 2027, with strong lender engagement for refinancing.

• The company's portfolio is highly contracted, with 91% of revenue from Ireland, Germany, and France contracted at an average price above EUR95 per megawatt hour, providing revenue resilience.

• Greencoat Renewables PLC ( LSE:GRP ) has established a Green Digital Infrastructure platform, with the Drogheda Energy Park progressing well and targeting a cash-on-cash return of more than 3x, supported by strong customer and partner engagement.

Negative Points

• Greencoat Renewables PLC ( LSE:GRP ) experienced weaker wind resource in Q1 2026, with production 6% below budget for H1, impacting overall revenue and cash generation.

• The company's gearing stood at 53%, above the target of mid-40s, requiring a disposal program to reduce leverage by the end of 2027.

• NAV decreased by 4% to EUR1.1 billion, primarily due to a reduction in the German power price curve by close to 10%, reflecting lower long-term power price expectations.

• Revenue was down 2% on a reported basis versus last year, although like-for-like revenue increased by 4%, indicating some pressure from disposals and market conditions.

• The company faces uncertainty around the timing of ECJ and Supreme Court proceedings related to compensation for curtailment, with no clear visibility on when final decisions will be made, delaying potential NAV increases.

Q & A Highlights

Q: Given the recent strength in power prices, do you see upside risk to your H2 cash generation guidance and how are you looking to take advantage of those power prices? A: Bernard Byrne, Non-Executive Chairman, said the company is not a trader and has no crystal ball, but power price risk is very limited. A bulk of merchant exposure has been contracted via the Borkum PPA, and NAV projections are underpinned by pricing known at the end of June, which has since strengthened. With low gas storage levels, power prices are expected to remain elevated through the upcoming winter period regardless of geopolitical developments.

Q: Can you give any market colour on your sales processes in terms of demand and timing, and has there been any meaningful change in buyer appetite over the course of the current year, particularly around what's going on in the Middle East? A: Paul O'Donnell, Investment Manager, said the market remains very strong for long-term renewable assets, particularly wind, with a scarcity factor and good competitive dynamics across markets. The short-term Middle East situation is beneficial given more attractive power prices across Europe. The company intends to sell at and/or around NAV, a key criteria, and remains confident that will be the case, though no specific timing guidance was given.

Q: On the court case around compensation and curtailment, can you update on the likely timetable of the ECJ and Supreme Court proceedings, and what's the scope for further NAV increases from historic compensation or higher future curtailment revenues? A: Paul O'Donnell, Investment Manager, said the company has been successful at every stage in the Irish courts, on appeal in Ireland, and at the European Court of Justice. There is no visibility yet on when the final ECJ decision will be written up, which will then allow engagement with the regulator on historical compensation and future dispatch-down payment mechanisms. There is scope for NAV upside, and the company has not yet reflected anywhere near the long-term compensation it feels entitled to into NAV.

Q: On hybridisation, you give the Killala case study at a 10% unlevered IRR and 15% cash yield on slide 25. How does this relate to the projects you're looking to initiate, and can you break down those returns between contracted and merchant style returns? A: Bernard Byrne, Non-Executive Chairman, explained the 10% Killala unlevered IRR differs from the 13% indicated in capital allocation because the battery revenue market in Ireland was nascent when established in 2021-2022, and EBITDA has since doubled. The 13% is what the company is confident the market is now set up to deliver. On the mix, the contracted portion is anticipated to sit around two-thirds plus of revenue, with the residual merchant-driven, noting contracts are around 5-7 years rather than 15 years.

Q: On Drogheda Energy Park, if final planning is secured later this year, what time on then do you expect the final grid connection offer? A: Paul O'Donnell, Investment Manager, outlined three milestones: a final planning decision expected in H2 of this year; a grid offer expected to follow within months, not years, given the existing 38 KV grid connection; and access to backup capacity plant under the new large energy user action plan. Combined, this means final development phases through 2027, moving toward FID/construction phase in 2028.

Q: On the Drogheda Energy Park and the new platform, has anything changed on the opportunity since it was first announced, and beyond that pilot project, are there additional sites you could acquire and when? A: Paul O'Donnell, Investment Manager, said the view of the platform is unchanged it is best positioned to develop sites by unlocking planning, grid, and customer engagement milestones. The capital invested is development capital designed to create value uplift from de-risking projects, with active access to longer-term capital to step in at FID. Bernard Byrne, Non-Executive Chairman, added that the strategy has transformed engagement with Big Tech companies in Ireland, and the Drogheda site has capacity to scale from 32 megawatts up to 100 megawatts, with neighboring land enabling a much larger campus.

Q: On policy momentum, you highlight good policy momentum at the EU level. Is there anything else within the geographies you operate in that you're looking for in terms of policy, or do you now see that most of the investment targets and necessary policies are in place? A: Paul O'Donnell, Investment Manager, said the company feels comfortable with the current policy backdrop, viewing Europe as a very good long-term market to invest into. Policy is seen as stable in the countries where they invest, with a growth outlook. Future increased investment will be led by the returns that can be secured on incremental investments, and the backdrop looks really interesting.

Q: On partnering with utilities and potentially the services it can offer, can you elaborate slightly on how that may look in the future if that was an avenue you ultimately decided to go down? A: Paul O'Donnell, Investment Manager, said large energy parks will require increased investment into renewables, backup flexibility and storage, and likely thermal generation for long-term stability. Greencoat Renewables' capability is more led toward renewables and energy storage such as batteries, while utilities are more focused on a mix including building power plants and backup gas. This lends itself well to partnerships, and the company's platform can fast-track development and unlock new sites in a partnership model.

Q: Is the Drogheda asset still held at cost and how should we think about valuation over the coming months as you progress, and when do you expect the first meaningful value creation from Drogheda? A: Bernard Byrne, Non-Executive Chairman, confirmed all assets are held at cost. The company is considering when it is appropriate to record value creation into reported value, having gone through a number of milestones that underpin those values. The company will be transparent on the basis of valuation and associated milestones so investors can factor probability and value creation potential into NAV, noting these are not operating assets and require a refined approach.

Q: Looking at slide 27 and the valuation framework of about EUR2 million to EUR4 million per megawatt at FID, can you talk about the evidence underpinning these ranges, in particular whether there are transactions, benchmarks or discussions that support them? A: Paul O'Donnell, Investment Manager, said the benchmarks are clear, with a lot of work done understanding the long-term finance

For the complete transcript of the earnings call, please refer to the full earnings call transcript .