EDP Renovaveis reports strong Q2 results with US operations leading growth

Investing.com -- EDP Renovaveis (ELI:EDPR) on Wednesday reported second-quarter 2025 EBITDA of €483 million, exceeding consensus expectations by 5% and Jefferies estimates by 6%, driven primarily by strong performance in its North American operations.

The renewable energy company posted net income of €85 million for the quarter, surpassing consensus by 23% and Jefferies estimates by 27%.

The better-than-expected results were attributed to improved earnings in the United States and enhanced operational efficiency across the company’s portfolio.

North America emerged as the standout region, with second-quarter EBITDA reaching €313 million, representing a 26% year-over-year increase and 17% above Jefferies estimates.

This growth was supported by a 16% year-over-year increase in power generation in the region during the quarter.

While other regions showed small misses in performance, the magnitude of the North American results more than compensated for these shortfalls.

EDPR reported net debt of €9 billion at the end of the second quarter, a slight increase of €0.1 billion from €8.9 billion in the first quarter.

This implies a net debt to EBITDA ratio of 4.7x, based on the company’s full-year EBITDA target of €1.9 billion.

The company maintained its previously announced financial targets for 2025, including recurring EBITDA of €1.9 billion (with €0.1 billion expected from asset rotation) and a net debt target of €8 billion.

EDPR continues to expect asset rotations (estimated at €2 billion for 2025) and tax equity (estimated at €1 billion for 2025) to assist with net debt reduction.

Average selling price for the quarter was €54.9 per MWh, representing a 9% decrease year-over-year.

This decline was driven by a 9% drop in average selling prices in Europe and a 7% decline in Brazil (in Brazilian real), partially offset by a 4% increase in average selling price in North America in US dollars.

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