EDP Renewables H1 profit jumps 33% as US operations drive growth

EDP Renewables reported a 33% jump in first-half recurring net profit to €183 million ($209 million), beating analyst estimates as its US operations drove earnings growth.

"The results reflect solid execution of our growth strategy, with the US market contributing significantly to our performance," the company said in a statement.

Recurring earnings before interest, taxes, depreciation and amortization rose 8% year-on-year to €1.03 billion, with US operations accounting for 62% of the total. Excluding foreign exchange effects from the US dollar's 7% depreciation against the euro, recurring net profit climbed 43% and recurring EBITDA increased 12%. The company beat the average analyst forecast of €170 million for recurring net profit, according to a poll by LSEG.

The world's fourth-largest wind energy producer benefited from portfolio expansion in North America and higher gains from asset rotation. EDPR recorded €66 million from the sale of mature assets in Italy during the first half, compared with €12 million a year earlier. Recurring core operating expenses fell 2% on efficiency measures.

Gross capacity additions over the past 12 months totaled 1.8 GW, with 48% in North America and 36% in Europe, lifting total installed capacity to 20.5 GW. Electricity generation rose 4% to 22.1 terawatt hours, supported by a 7% increase in North America that offset a 2% decline in Europe. The company had 1.9 GW under construction by June, supporting growth beyond 2026.

The earnings beat signals that EDPR's US-focused expansion strategy is delivering measurable returns despite currency headwinds. Investors will watch for updates on the 1.9 GW construction pipeline and potential new asset rotation deals in the second half.

This article is for informational purposes only and does not constitute investment advice.