EDP Renovaveis Beats H1 Earnings Estimates on US Growth, Asset Sales

EDP Renovaveis (EDPR) reported first-half 2026 earnings that surpassed analyst expectations, driven by strong operational growth in North America and gains from asset sales, which helped offset weaker performance in its European markets.

Key Financials Exceed Forecasts

The renewable energy company announced that its earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first half of the year rose 11% year-over-year to €1.057 billion, beating market consensus by 4%.

Recurring net profit reached €183 million, a figure that came in approximately 14% ahead of analyst forecasts. The company noted that lower tax payments also contributed to the strong bottom-line results.

US Expansion Offsets European Weakness

A key driver of the earnings beat was the performance of EDPR's North American operations, where EBITDA grew by 9% year-over-year, fueled by an expansion of its asset portfolio. In contrast, European operations saw EBITDA decline by 7%, a result attributed to lower average selling prices and adverse foreign exchange impacts.

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The company's overall average selling price fell 6% year-over-year to €52 per megawatt-hour (MWh), pressured by an 11% drop in European electricity prices, particularly in Iberia. This was partially mitigated by price increases of 3% in North America and 14% in South America.

Balance Sheet and Asset Management

EDPR's net debt increased by €573 million from the prior year to €8.68 billion, which the company attributed to net investments in its growth pipeline. The increase was partially offset by €200 million in organic cash flow and €500 million from asset rotation and tax equity proceeds.

Asset rotation gains, primarily from the Italian market, totaled €66 million, a substantial increase from €5 million in the first half of 2025. The company also demonstrated operational efficiency, reducing its recurring core operating expenses by 2% to €376 million.