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1. Company Snapshot

1.a. Company Description

EDP Renováveis, S.A., a renewable energy company, plans, constructs, operates, and maintains electric power generation plants.The company operates wind and solar farms.As of December 31, 2021, it had an installed capacity of 5,908 megawatts in the United States; 2,194 megawatts in Spain; 795 megawatts in Brazil; and 1,142 megawatts in Portugal.


The company was incorporated in 2007 and is headquartered in Madrid, Spain.EDP Renováveis, S.A. operates as a subsidiary of EDP-Energias de Portugal, S.A.

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1.b. Last Insights on EDPR

EDP Renováveis' recent performance was positively driven by strong growth in wind and solar activities, with a 5% increase in recurring net profit. The company's robust performance was fueled by favorable business conditions, with the US publishing better-than-expected guidelines on wind and solar tax credits, easing bottlenecks for new wind turbine orders. Additionally, a rebound in renewable energy stocks, driven by improved outlook and slowed outflows from clean-energy strategies, has breathed new life into the sector. The company's Q3 earnings report also highlighted increased net debt, however.

1.c. Company Highlights

2. EDP's Q3 2025 Earnings: A Strong Performance Driven by Renewables

EDP's recurring net profit reached EUR 974 million in the first 9 months of 2025, a 5% increase in underlying terms, driven by higher wind and solar installed capacity, higher generation, and resilient electricity networks. The company's EBITDA reached EUR 3.7 billion, a 2% increase on underlying year-on-year or 4% excluding FX effects. Earnings per share (EPS) came in at EUR 0.07, significantly higher than the estimated EUR 0.03539. The robust performance was largely driven by EDPR, which delivered a strong set of results with underlying EBITDA growing by 21% year-on-year.

Publication Date: Nov -10

📋 Highlights
  • Renewable EBITDA Growth: Wind and solar underlying EBITDA rose 21% YoY to EUR 1.4 billion, driven by 20 GW installed capacity and 14% higher generation.
  • Recurring Net Profit Increase: EDP’s recurring net profit hit EUR 974 million in 9M2025, a 5% underlying rise, with EUR 1.2 billion projected annually despite higher debt costs.
  • Net Debt Reduction Target: EDP’s net debt is EUR 17.3 billion currently but expected to fall to EUR 16 billion by year-end, aided by EUR 2 billion in asset rotation proceeds.
  • 2025 Guidance Confirmed: Full-year EBITDA guidance set at EUR 4.9 billion (up from prior range) with net income of EUR 1.2 billion, despite 25-26% tax rate and higher Brazilian debt costs.
  • Offshore Wind Challenges: EUR 500 million impairment (EUR 300M EDPR, EUR 200M EDP) recorded for U.S. offshore projects due to delays, with legal action to defend permits.

Renewables Drive Growth

EDPR's performance was marked by robust underlying EBITDA and net profit, continued capacity delivery, and solid progress on the asset rotation plan. The company reached 19.8 gigawatts of installed capacity, with generation up 14% despite lower renewable resources in Q3. Rui Teixeira noted that EDPR's recurring underlying EBITDA rose by EUR 231 million, driven by the solid performance on the operational side. The company's wind and solar segment, including EDPR, is forecasted to contribute around EUR 1.9 billion to EBITDA in 2025.

Guidance and Outlook

EDP is confident in delivering its guidance for 2025, with expected recurring EBITDA of around EUR 4.9 billion, supported by strong performance across all business segments. The company expects net debt to stand near EUR 16 billion by year-end, with EUR 2 billion in asset rotation proceeds and EUR 1 billion in tax equity proceeds. Analysts estimate next year's revenue growth at 5.3%, indicating a positive outlook for the company.

Valuation Metrics

EDP's current valuation metrics indicate a relatively high EV/EBITDA ratio of 11.09, suggesting that the company's enterprise value is significantly higher than its EBITDA. The P/E Ratio is negative at -18.31, while the P/B Ratio stands at 1.22. The Net Debt / EBITDA ratio is at 4.96, indicating a significant level of debt relative to EBITDA. These metrics suggest that the market is pricing in a challenging financial situation, but the company's strong performance in renewables and guidance for 2025 may indicate a positive turnaround.

3. NewsRoom

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EDP Renovaveis SA (EDRVF) Q3 2025 Earnings Call Highlights: Strong Growth in Wind and Solar ...

Nov -06

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Analysis-'Every electron counts': Why renewables stocks are back in play

Oct -09

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Assessing EDP Renováveis After Recent Share Rebound and Ongoing Sector Volatility

Sep -24

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Vestas Soars as Trump Tax Rules Seen Better Than Feared

Aug -18

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European Renewable Stocks Rise After U.S. Tax Credit Guidance

Aug -18

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EDP Renewables North America Announces 20-Year PPA with California Water Service

Jul -23

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Clean Energy Got Hit Hard in the Tax Bill. Some Players Still Have a Way to Win.

Jul -02

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EDP Renovaveis SA (EDRVF) Q1 2025 Earnings Call Highlights: Strong Capacity Growth Amid Market ...

May -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.82%)

6. Segments

Electricity

Expected Growth: 12%

EDP Renováveis' 12% growth in electricity generation is driven by increasing demand for renewable energy, favorable government policies and incentives, expansion into new markets, and investments in wind and solar farms. Additionally, the company's focus on operational efficiency and cost reduction measures have contributed to the growth.

Services

Expected Growth: 10%

EDP Renováveis, S.A.'s 10% growth is driven by increasing demand for renewable energy, favorable government policies and incentives, expansion into new markets, and investments in wind and solar power projects, as well as the company's commitment to reducing carbon emissions and increasing energy efficiency.

Other

Expected Growth: 8%

EDP Renováveis, S.A.'s 8% growth is driven by increasing demand for renewable energy, favorable government policies, and declining production costs. The company's diversified portfolio of wind and solar farms, strategic partnerships, and expansion into new markets also contribute to its growth momentum.

Cost of Consumables Used and Changes in Inventories

Expected Growth: 9%

EDP Renováveis, S.A.'s 9% growth in Cost of Consumables Used and Changes in Inventories is driven by increased wind and solar energy production, leading to higher consumption of raw materials and maintenance costs. Additionally, strategic inventory management and supply chain optimization have contributed to the growth.

7. Detailed Products

Onshore Wind Power

EDP Renováveis generates electricity through onshore wind farms, harnessing wind energy to produce clean and sustainable power.

Offshore Wind Power

EDP Renováveis develops and operates offshore wind farms, leveraging advanced technology to harness wind energy in coastal areas.

Solar Power

EDP Renováveis develops and operates solar farms, converting sunlight into electricity to power homes, businesses, and industries.

Hydroelectric Power

EDP Renováveis generates electricity through hydroelectric power plants, harnessing the energy of moving water.

Biomass Energy

EDP Renováveis produces electricity and heat from organic matter, such as wood chips and agricultural waste.

Energy Storage

EDP Renováveis develops and operates energy storage solutions, enabling the efficient storage and release of renewable energy.

8. EDP Renováveis, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for EDP Renováveis, S.A. is medium due to the availability of alternative renewable energy sources, such as solar and hydroelectric power.

Bargaining Power Of Customers

The bargaining power of customers for EDP Renováveis, S.A. is low due to the lack of negotiating power of individual customers and the company's strong market position.

Bargaining Power Of Suppliers

The bargaining power of suppliers for EDP Renováveis, S.A. is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for EDP Renováveis, S.A. is high due to the increasing demand for renewable energy and the ease of entry into the market.

Intensity Of Rivalry

The intensity of rivalry for EDP Renováveis, S.A. is high due to the presence of several established players in the renewable energy market and the need to differentiate itself through innovation and cost leadership.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.83%
Debt Cost 6.76%
Equity Weight 60.17%
Equity Cost 6.76%
WACC 6.76%
Leverage 66.21%

11. Quality Control: EDP Renováveis, S.A. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Fortum

A-Score: 5.3/10

Value: 3.8

Growth: 2.8

Quality: 6.1

Yield: 5.0

Momentum: 7.0

Volatility: 7.0

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Acciona Energías Renovables

A-Score: 5.2/10

Value: 7.3

Growth: 4.8

Quality: 5.3

Yield: 1.2

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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ReNew Energy Global

A-Score: 4.7/10

Value: 3.2

Growth: 8.7

Quality: 4.1

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Encavis

A-Score: 4.6/10

Value: 4.2

Growth: 6.1

Quality: 6.2

Yield: 0.6

Momentum: 5.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Neoen

A-Score: 3.3/10

Value: 2.6

Growth: 3.8

Quality: 3.3

Yield: 0.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
EDP Renováveis

A-Score: 3.1/10

Value: 6.3

Growth: 2.3

Quality: 2.7

Yield: 1.9

Momentum: 2.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.12$

Current Price

0.12$

Potential

-0.00%

Expected Cash-Flows