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Investing.com -- EDP Renovaveis (ELI:EDPR) on Thursday raised its full-year 2025 profit guidance despite reporting first-half results that fell short of analyst expectations.
The energy company posted earnings before interest, taxes, depreciation and amortization (EBITDA) of €2.58 billion for the first half of 2025, which was 2% below consensus estimates and 3% below Jefferies’ forecast.
Net income for the period reached €0.7 billion, missing consensus expectations by 5% and Jefferies estimates by 6%.
The company’s renewables business delivered strong performance, particularly in U.S. operations. However, this was partially offset by weaker results in the networks segment, which declined 9% year-over-year.
The networks business was negatively impacted by the absence of asset rotation gains that were recorded in the first half of 2024 related to the sale of a transmission line, as well as foreign exchange headwinds from the Brazilian real.
Net debt increased to €17.2 billion, in line with Jefferies estimates but up approximately 6.5% quarter-over-quarter. This represents a net debt to last twelve months EBITDA ratio of 3.8x.
Despite the slight earnings miss, EDP raised its full-year 2025 net income guidance from approximately €1.2 billion to a range of €1.2-1.3 billion, representing a 4% increase at the midpoint. The new guidance is 1% above company consensus at the midpoint.
Analysts at Jefferies expect a neutral market reaction to the results, noting that while the first-half performance was slightly below expectations, the full-year outlook remains broadly in line with company estimates at the midpoint.