Q1 2026 EDP SA Earnings Call Transcript
Key Points
- EDP-Energias De Portugal SA (EDPFY) delivered a solid set of results for the first quarter of 2026, supported by a new regulatory period in Iberian networks and growth in renewables, particularly in the US.
- The company achieved a strong cost discipline, with a 4% year-on-year decrease in operating expenses and an 8% reduction over the last two years.
- Electricity demand in Portugal is growing significantly, supported by population growth and electrification, with expectations of continued growth at a 4-5% CAGR between 2026 and 2035.
- EDP-Energias De Portugal SA (EDPFY) is benefiting from competitive power prices in Portugal and Spain, which remain below the European average, supported by a high share of renewables in the generation mix.
- The company is on track to deliver its business plan targets, with 60% of the 2026-2028 capacity already secured, and a strong commercial pipeline providing visibility on growth.
- Recurring EBITDA declined by 3% year-on-year due to lower electricity prices in Iberia and higher ancillary services costs.
- Recurring net profit for the quarter decreased by 9% compared to the first quarter of the previous year, reflecting the challenging comparison with an exceptionally strong first quarter of 2025.
- The company faced higher ancillary services costs in Iberia, particularly due to storms impacting the electricity supply business.
- Net financial costs increased by EUR16 million year-on-year, driven by higher interest costs and lower capitalization.
- The company is facing potential regulatory challenges, including discussions around windfall taxes in Portugal and the impact of storms on infrastructure resilience.
Good morning. We welcome you to EDP's first quarter 2026 results presentation conference call. (Operator Instructions) I will now hand the conference over to Mr. Miguel Viana, Head of IR and ESG. Please go ahead.
Good morning, ladies and gentlemen. Thanks for attending EDP's first quarter '26 results conference call. We have today with us our CEO, Miguel Stilwell De Andrade; and our CFO, Rui Teixeira, which will present to you the main highlights of our strategy execution and first quarter '26 financial performance.
We'll then move to the Q&A session, in which we'll be taking your questions, starting with the written questions that you can insert from now onwards at our webcast platform and then by the phone.
I'll give now the floor to our CEO, Miguel Stilwell De Andrade.
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