This article first appeared on GuruFocus .
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Recurring Net Profit:EUR974 million, up 5% year-on-year.
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EBITDA:EUR3.7 billion, a 2% increase year-on-year, or 4% excluding FX effects.
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Wind and Solar EBITDA Growth:21% year-on-year.
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Installed Capacity:Nearly 20 gigawatts, with generation up 14% year-on-year.
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Asset Rotation Gains:EUR55 million, down from EUR250 million last year.
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Net Debt:EUR17.3 billion, expected to reach EUR16 billion by year-end.
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Recurring EBITDA for EDPR:EUR1.4 billion, up 9% year-on-year.
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EDPR Installed Capacity:19.8 gigawatts, with generation up 14%.
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Average Selling Price:EUR54 per megawatt hour, down 9% year-on-year.
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Recurring Net Profit for EDPR:EUR189 million, a significant increase from the previous year.
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Organic Cash Flow:EUR2.1 billion, reflecting improved working capital performance.
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Cost of Debt:Increased to 4.9% from 4.5% last year.
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Release Date: November 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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EDP Renovaveis SA ( EDRVF ) reported a recurring net profit of EUR974 million for the first nine months of 2025, marking a 5% increase year-on-year.
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The company achieved a 21% year-on-year growth in underlying EBITDA for wind and solar, supported by nearly 20 gigawatts of installed capacity.
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EDP Renovaveis SA ( EDRVF ) demonstrated strong operational performance with a 14% increase in generation capacity.
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The company maintained efficiency improvements, with lower costs and better productivity metrics, such as reduced OpEx per megawatt.
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EDP Renovaveis SA ( EDRVF ) is on track to meet its 2025 guidance, with a recurring EBITDA expected to reach EUR4.9 billion, supported by strong performance across all business segments.
Negative Points
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Asset rotation gains were significantly lower at EUR55 million compared to EUR250 million in the same period last year, impacting overall financial performance.
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The hydro, clients, and energy management segment saw a EUR99 million decrease year-on-year due to lower hydro volumes, lower contracted prices, and higher sourcing costs.
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EBITDA from the network side declined by EUR91 million, primarily due to the absence of asset rotation gains and the loss of EBITDA from sold transmission lots.
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The company faced challenges with lower renewable resources in Q3, particularly in North America, which was one of the worst quarters since 1989.
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Net debt increased to EUR17.3 billion from EUR15.6 billion at year-end 2024, reflecting the execution of the investment plan and annual dividend payments.
Q & A Highlights
Q: Can you clarify if the capital gain at EDPR in the first quarter relates only to the sale of the 121 megawatts wind portfolio in France and Belgium, and what is the capital gain per megawatt? A: Yes, the capital gain in the third quarter is mostly related to the French and Belgium portfolio, with a capital gain of around EUR0.4 million per megawatt. The transaction had an EV per megawatt of around EUR1.6 million, implying approximately 28% capital gains on invested capital. This reflects strong demand and attractive multiples for our portfolios in Europe.
Q: What impact did the extra cost with ancillary services in Iberia have on the nine months '25 accounts? A: The ancillary services costs increased significantly post-blackout, with an estimated value of around EUR150 million. While revenues on the generation side are passed on to customers, some contracts are fixed, allowing us to benefit from our FlexGen portfolio, though partially offset by customer pass-throughs over the next few years.
Q: Can you comment on the guidance for 2025, particularly the EBITDA and net income projections? A: We are confident in delivering the guidance across all business segments, including the integrated segment in Iberia. Despite a weaker October, we expect EBITDA to be at the top end of the range. However, higher financial costs in Brazil and a tax rate of around 25%-26% are expected, bringing net income close to EUR1.2 billion.
Q: What is the current exposure regarding offshore projects in the US, and any comments on recent permitting news? A: Offshore projects in the US are currently in hibernation mode. Our total exposure at the EDPR level is around EUR300 million, with EUR200 million at the EDP level. We have partially impaired this, assuming a four-year project delay. We are focused on building a legal case to defend project permits and value.
Q: How is the hedging for 2026 progressing in terms of volume and prices in Iberia? A: For 2026, we are already around 85% hedged at a price north of EUR64 per megawatt hour. This is done on a rolling basis, and we typically hedge 12 to 18 months ahead. We aim to avoid overhedging, so 85% is the desired level for 2026.
Q: How is the execution of the 2025 target of 2 gigawatts in EDPR progressing? A: We are on track, on time, and even slightly under budget for some projects. Overall, the execution is within budget, with no supply chain issues, and we expect to wrap up by the end of the year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
