EDP Reports Strong Profit Growth
EDP, the Portuguese energy utility, reported a net profit of €1.194 billion for the nine months ending September 2026. This is a 25% increase from €952 million during the same period last year. The company credited this growth to its electricity networks and renewable energy segments. Recurring net profit rose 22% to €1.191 billion.
The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 11% to €4.17 billion. Reported EBITDA increased 19% to €4.48 billion. EDP's electricity networks segment generated recurring EBITDA of €1.30 billion, which is up 10% year-over-year. The Iberian network earnings saw a 16% increase to €812 million. This growth benefited from higher investments and improved returns due to new regulatory periods that started in early 2026.
In Brazil, recurring network EBITDA grew by 2% to €489 million. This was helped by inflation-linked revenue adjustments and higher distribution volumes. EDP's renewable energy business also contributed significantly to the earnings boost. EDP Renewables (EDPR) recorded a 23% increase in recurring EBITDA to €1.73 billion. This growth was driven by gains from asset rotation transactions in the U.S., Poland, and Italy, as well as portfolio expansions in North America. Asset rotation gains reached €333 million during the nine-month period. This is up from €59 million a year prior. However, this growth was partially offset by lower electricity prices in Europe and weaker wind resources in some areas.
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EDP's strong earnings may positively influence investor sentiment in the renewable energy sector. This is especially true for companies involved in similar asset rotations and network operations. Investors are likely to watch how EDP's performance impacts the broader energy market and regulatory landscape.
Keep an eye on EDP's upcoming earnings report. It will provide further insights into its fourth-quarter performance and strategic plans.
Based on reporting by: oilprice.com