Edp S.a. Adr

EDP reported recurring EBITDA of around EUR 2.7 billion in first half 2026, up 5% year over year, and recurring net profit of around EUR 0.8 billion, broadly flat year over year. Reported net profit was EUR 732 million, up 3% year over year. By segment, electricity networks EBITDA was EUR 874 million, up EUR 109 million and 14% year over year; FlexGen and Clients EBITDA was EUR 808 million, down 5%; and EDPR EBITDA was EUR 1.03 billion, up EUR 73 million and 8% year over year, or 12% excluding FX. CapEx in electricity networks increased 25% year over year to EUR 555 million. Net debt was EUR 17 billion versus EUR 15.4 billion at year-end 2025, with year-end 2026 guidance of approximately EUR 16 billion. For 2026, management upgraded guidance to around EUR 5.3 billion recurring EBITDA and around EUR 1.4 billion recurring net profit; asset rotation gains are now expected at around EUR 0.3 billion.

Miguel Stilwell d'Andrade framed the first half as very strong and said the business is performing well across its core platforms, especially networks, FlexGen, and EDPR. He emphasized a structural shift in networks investment and returns, Portugal’s rising electricity demand driven by electrification and data centers, and the growing value of flexible generation as solar and wind penetration rises. His tone was confident and upbeat, with repeated references to improved visibility for 2026-2028 and emerging opportunities beyond 2028.

Rui Teixeira focused on the financial delivery and margin discipline, noting recurring EBITDA of EUR 2.7 billion, recurring net profit of EUR 753 million, and reported net profit of EUR 732 million. He said recurring OpEx was down 3% year over year and 7% over the last two years on an inflation- and FX-adjusted basis, while EBITDA per headcount reached EUR 235,000. He also highlighted net financial costs of EUR 472 million, net debt of EUR 17 billion, a conservative debt profile with around two-thirds of debt in euros, and comfort with full-year net debt guidance of about EUR 16 billion as asset rotation and tax equity proceeds come in later in the year.

Analysts pressed management on Portugal data centers, the 4.6 GW grid-connection requests, and whether demand growth could eventually split Portuguese and Spanish power prices. Management said demand growth is a positive for networks, generation, and powered-land opportunities, but also said the Iberian interconnection is strong enough that market splitting has not happened yet. Questions on Brazil focused on curtailment and regulatory recognition of network RAB; management estimated historic curtailment value at around BRL 100 million, but said the decision on compensation and RAB recognition may not come before 2027. On the 500 MW powered-land portfolio, management clarified that the value is not yet fully crystallized and still depends on securing counterparties.