Brookfield Renewable Q2 2025 slides: FFO up 10% YOY, targets 8,000 MW new capacity

Published 01/08/2025, 12:52
Brookfield Renewable Q2 2025 slides: FFO up 10% YOY, targets 8,000 MW new capacity

Introduction & Market Context

Brookfield Renewable Partners LP (NYSE:BEP) released its Q2 2025 supplemental information showing solid funds from operations (FFO) growth despite posting a net loss for the quarter. The renewable energy giant’s stock has been recovering from its 52-week low of $19.29, trading at $27.55 as of July 31, 2025, reflecting growing investor confidence in the company’s expansion strategy amid the global energy transition.

The company’s Q2 results build upon the momentum seen in Q1, when it reported revenue of $907 million and FFO of $315 million. The second quarter showed significant improvement in both metrics, highlighting Brookfield Renewable’s ability to execute on its growth initiatives while maintaining strong operational performance.

Quarterly Performance Highlights

Brookfield Renewable reported Q2 2025 revenues of $1,692 million with proportionate adjusted EBITDA of $700 million. The company achieved FFO of $371 million ($0.56 per unit), representing a 10% increase year-over-year. Despite these positive operational results, the company recorded a net loss attributable to unitholders of $112 million, though this marks an improvement from the $154 million loss in Q2 2024.

As shown in the following financial highlights chart:

The company maintained its distribution growth trajectory, declaring a quarterly distribution of $0.373 per LP unit (annualized to $1.492), representing over 5% growth from the prior year. This continues Brookfield Renewable’s track record of distribution increases, which have grown at a 6% compound annual growth rate (CAGR) since inception.

The company’s long-term distribution growth is illustrated in this chart:

Operationally, Brookfield Renewable reported total capacity of 47,549 MW with total generation of 30,650 GWh and proportionate generation of 9,542 GWh. The company’s portfolio remains well-positioned with approximately 90% of generation contracted for an average term of 13 years, providing stable and predictable cash flows.

Strategic Initiatives

Brookfield Renewable continues to execute on its growth strategy through strategic partnerships, investments, and development projects. Key initiatives highlighted in the Q2 presentation include:

The company secured a major partnership with Google (NASDAQ:GOOGL) to provide up to 3,000 MW of hydroelectric capacity, reinforcing its position as a partner of choice for corporations seeking clean energy solutions. Additionally, Brookfield Renewable signed contracts to deliver approximately 4,300 gigawatt hours of renewable energy per year to various customers.

On the financing front, the company completed $19 billion in financings year-to-date, including C$250 million of 30-year hybrid notes and €6.3 billion in project financing in Poland. Its asset recycling program is expected to generate proceeds of approximately $1.5 billion.

Brookfield Renewable’s global footprint spans five continents with operations in 25 countries, as illustrated in this geographical breakdown:

The company’s portfolio is diversified across multiple renewable technologies and regions, with 75% of FFO coming from developed markets and 90% from established renewable technologies:

Development Pipeline and Growth Outlook

Brookfield Renewable has delivered approximately 7,700 MW of new capacity year-to-date and expects to bring online a total of around 8,000 MW of new renewable capacity in 2025. The company’s development pipeline is robust, with projects expected to deliver approximately $430 million of annualized FFO over the next three years.

The following chart details the company’s development profile and expected commissioning schedule:

Brookfield Renewable has deployed or committed to deploy up to $2.6 billion across multiple investments and will invest up to $1 billion to acquire a stake in Isagen, further expanding its portfolio of high-quality renewable assets.

The company continues to target 10%+ annual FFO per unit growth, building on its strong historical performance:

Financial Position

Brookfield Renewable maintains a strong financial position with $4.7 billion of available liquidity as of June 30, 2025. The company’s conservative financial approach is reflected in its debt profile, with 90% of borrowings at the consolidated level being non-recourse.

The company’s capital structure and available liquidity are detailed below:

The weighted average remaining contract duration across Brookfield Renewable’s portfolio is 13 years, providing visibility into future cash flows. Contract durations vary by region, with 14 years in North America, 18 years in Europe, 9 years in Brazil, 5 years in Colombia, and 16 years across remaining jurisdictions.

Forward-Looking Statements

Looking ahead, Brookfield Renewable remains focused on delivering long-term value to unitholders through its three-pronged strategy of operational excellence, development activities, and acquisitions. The company reaffirmed its target of 5-9% annual distribution growth and 10%+ FFO per unit growth.

Management expects to continue capitalizing on the global energy transition, leveraging its scale, operational expertise, and financial strength to acquire and develop high-quality renewable assets. With approximately 70% of revenues indexed to inflation, the company is well-positioned to navigate potential economic headwinds while delivering stable and growing cash flows.

Brookfield Renewable’s Q2 2025 results demonstrate its ability to execute on its growth strategy while maintaining financial discipline, positioning the company for continued success in the rapidly evolving renewable energy landscape.

Full presentation:

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