EDP Net Profit Climbs 25% as Grids and Renewables Boost Earnings

Portuguese energy utility EDP reported net profit attributable to shareholders of €1.194 billion for the nine months ending September 2026, compared with €952 million in the corresponding period last year.

Recurring net profit increased 22% year-over-year to €1.191 billion, while recurring earnings before interest, taxes, depreciation and amortization (EBITDA) climbed 11% to €4.17 billion. Reported EBITDA rose 19% to €4.48 billion.

The improvement was supported by EDP’s electricity networks business, which benefited from higher regulated returns in Portugal and Spain, alongside stronger contributions from its renewable energy operations.

EDP’s electricity networks segment generated recurring EBITDA of €1.30 billion, up 10% from the previous year. Iberian network earnings increased 16% to €812 million, supported by higher investment and improved rates of return following the introduction of new regulatory periods at the beginning of 2026.

In Brazil, recurring network EBITDA increased 2% to €489 million, helped by inflation-linked revenue adjustments, higher distribution volumes and favorable currency movements.

The company’s renewable energy business also contributed significantly to earnings growth.

EDP Renewables (EDPR), the group’s listed renewable energy subsidiary, recorded a 23% increase in recurring EBITDA to €1.73 billion within EDP’s consolidated reporting.

The improvement reflected increased gains from renewable energy asset rotation transactions in the United States, Poland and Italy, alongside additions to the company’s generation portfolio, particularly in North America.

Asset rotation gains reached €333 million during the nine-month period, compared with €59 million a year earlier. However, lower European electricity prices, weaker wind resources in some regions and the depreciation of the U.S. dollar against the euro partially offset the improvement.

EDP’s flexible generation and customer operations contributed another €1.14 billion in recurring EBITDA, up 2% year-over-year. Higher revenues from pumped hydro storage and ancillary electricity services supported the Iberian business, while Brazilian operations benefited from higher electricity selling prices.

Across the wider group, electricity generation reached 48.3 terawatt-hours (TWh), increasing 0.5% from the previous year, with renewable energy accounting for 92% of total production.

Electricity distributed through EDP’s networks increased 3% to 70.2 TWh. Total installed generation capacity reached approximately 32.8 gigawatts (GW), of which 87% was renewable.

Despite the stronger earnings, organic cash flow declined 14% to €1.86 billion, reflecting unfavorable working capital movements and higher tax payments.

Net cash investments decreased 12% to €2.12 billion, supported by lower capital expenditure and higher proceeds from renewable asset rotation transactions.

EDP’s consolidated net debt increased to €16.8 billion at the end of September, from €15.4 billion at the end of 2025, although its net debt-to-EBITDA ratio remained stable at approximately 3.3 times.

The results highlight the growing importance of regulated power networks and renewable asset monetization to EDP’s earnings, as the utility continues to invest in electricity infrastructure while managing leverage and capital expenditure.

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