EDP Targets €12 Billion in Investments Under 2026–28 Growth Plan

Core Insights - EDP has unveiled its 2026–28 Business Plan, focusing on global electrification and data center expansion, with renewables and electricity networks at the core of its growth strategy [1] Investment Strategy - The company plans to invest approximately €12 billion over the next three years, with €7.5 billion allocated to EDP Renewables for wind, solar, and battery projects, primarily in the U.S. [2] - An additional €3.6 billion will be directed towards enhancing electricity networks, with two-thirds of this investment in Iberia [2] Financial Discipline - EDP aims to maintain capital discipline through asset rotation, targeting around €5 billion in proceeds and average annual gains of €200 million, alongside €1 billion in planned disposals [3] - The company plans to keep nominal operating expenses flat at €1.9 billion, targeting an OPEX-to-gross profit ratio of about 26% through automation and AI [3] Financial Projections - EDP reiterated its 2025 EBITDA guidance at approximately €4.9 billion, expecting it to rise to between €4.9 and €5 billion in 2026 and around €5.2 billion by 2028, reflecting a 6% increase from 2025 estimates [4] - Net debt is projected to remain near €16 billion in 2025–26, decreasing to about €15 billion by 2028, supported by stronger cash generation [5] Earnings Outlook - Net income is expected to grow from roughly €1.2 billion in 2025 to about €1.3 billion by 2028, an 8% increase, driven by more stable, regulated revenues [6] - The company plans to raise its dividend floor to around €0.21 per share by 2028, a 5% increase from 2025, with a payout ratio between 60% and 70% [6] Future Growth Opportunities - Beyond 2028, EDP anticipates continued growth from rising power demand due to U.S. and European data center development, with plans to expand its renewables pipeline [7] - Investment needs in electricity networks are expected to remain high, while conventional generation assets will benefit from their flexibility [7]