Earnings Alerts

EDP Renovaveis SA (EDPR) Earnings: 1H Net Income Misses Estimates Despite Strong Recurring Ebitda Performance

  • EDP Renováveis (EDPR) reported a net income of EU93 million for the first half of 2025, a 56% decline year-over-year, missing the estimated EU121 million.
  • Earnings before interest, taxes, depreciation, and amortization (Ebitda) stood at EU948 million, slightly below the estimate of EU935.2 million, indicating a 1.3% year-over-year drop.
  • The recurring Ebitda, exlcuding asset rotation gains, experienced a 20% increase due to higher operational revenues in the US and improved operational efficiency.
  • Asset rotation gains in the first half of 2025 amounted to EU12 million, a significant drop from EU171 million in the same period last year.
  • The company has signed two asset rotation transactions in the US and France/Belgium with planned closure in the latter half of 2025.
  • The capacity under construction as of June 2025 reached 2.3 gigawatts, with an expected capacity addition of about 2 gigawatts in 2025, primarily in the fourth quarter.
  • The average electricity selling price fell by 9% year-over-year due to price declines in Europe and Brazil.
  • Reported net income was adversely affected by non-recurring items totaling EU44 million, mainly from the US, including accelerated depreciation of the Meadow Lake IV wind project and costs at Ocean Wind’s US platform.
  • Net debt increased to EU9 billion as of June 2025, up from EU8.3 billion in December 2024.
  • EDPR maintains its financial targets for 2025, expecting recurring Ebitda of EU1.9 billion with EU100 million from asset rotation gains, and net debt of about EU8 billion.
  • The company anticipates positive cash inflows in the second half of 2025 from asset rotation deals and tax equity transactions totaling about EU3 billion.
  • Investment analysts’ recommendations include 15 buys, 10 holds, and 2 sells.

A look at EDP Renovaveis SA Smart Scores

FactorScoreMagnitude
Value5
Dividend2
Growth2
Resilience2
Momentum5
OVERALL SMART SCORE3.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, EDP Renovaveis SA shows a promising long-term outlook. With top scores in Value and Momentum, the company is positioned well for future growth and performance in the renewable energy sector. EDP Renovaveis SA focuses on designing, developing, managing, and operating power plants that generate electricity primarily from wind energy, showcasing a commitment to sustainable energy practices.

Although the company’s scores in Dividend, Growth, and Resilience are not as high as Value and Momentum, EDP Renovaveis SA still maintains a solid overall outlook. Investors looking for a company with strong value and momentum factors in the renewable energy industry may find EDP Renovaveis SA an attractive option for their investment portfolio based on the provided Smart Scores.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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