Core Insights - Brookfield Renewable Corporation (NYSE:BEPC) is a significant player in the renewable energy sector, focusing on hydroelectric, wind, and solar power with an installed capacity of approximately 12,723 megawatts [1] - The company operates in multiple regions including the United States, Europe, Colombia, and Brazil, contributing to the global transition towards sustainable energy [1] Price Targets and Analyst Sentiment - The consensus price target for BEPC has remained stable at $36 over the past month and quarter, indicating steady confidence from analysts despite a slight decrease from last year's average price target of $36.67 [2][5] - Morgan Stanley has set a higher price target of $39 for BEPC, reflecting a positive outlook on the company's future performance based on strategic initiatives and market trends [4][5] Company Performance and Market Trends - During the Q4 2025 earnings call, management emphasized the company's strong performance and expanding development pipeline, driven by increasing electricity demand due to electrification, renewed industrial activity, and the growth of AI-related data centers [3]

Financial Data and Key Metrics Changes - The company delivered $2.01 of FFO per unit, up 10% year-over-year, aligning with long-term growth targets [3][14] - In Q4, FFO was $346 million, up 14% year-over-year, or $0.51 per unit [14] - The company ended 2025 with $4.6 billion in available liquidity, maintaining a BBB+ investment-grade credit rating [16][17] Business Line Data and Key Metrics Changes - The hydroelectric segment generated FFO of $607 million, up 19% from the prior year, benefiting from solid generation in Canada and Colombia [15] - The wind and solar segments combined generated $648 million of FFO, supported by acquisitions and investments, though offset by prior year gains [15] - Distributed energy storage and sustainable solutions segments achieved record results of $614 million, up almost 90% from the prior year [16] Market Data and Key Metrics Changes - The energy demand is rising significantly, driven by electrification and industrial activity, with a shift from energy transition to energy addition [5][6] - The company is positioned to capitalize on the growing demand for reliable baseload power through hydro and nuclear assets [7][8] Company Strategy and Development Direction - The company is focusing on scaling development of low-cost, fast-to-market solar and onshore wind to meet accelerating power demand [7] - Investments in battery technology are expected to quadruple storage capacity to over 10 gigawatts in the next three years [11] - The company aims to maintain a disciplined approach to capital allocation while pursuing growth opportunities in hydro, nuclear, and battery storage [23] Management's Comments on Operating Environment and Future Outlook - Management highlighted the strategic priority of power globally, with a need for substantial new generation capacity [5] - The company sees a constructive environment for M&A and growth deployment, anticipating a period of attractive opportunities [49] - The scarcity value of hydroelectric power is at an all-time high, with strong demand for long-term contracts [38] Other Important Information - The company executed over $37 billion in financings in 2025, a record for the franchise [17] - The capital recycling program generated record proceeds of $4.5 billion, or $1.3 billion net to BEP [20] - An increase of over 5% in annual distribution to $1.468 per unit was announced, marking 15 consecutive years of growth [23] Q&A Session Summary Question: Update on Microsoft Framework Agreement and capacity cadence - Management noted that demand from corporates, including Microsoft, is at an all-time high, with expected growth in capacity from 2026 onwards [25][26] Question: Commentary on liquidity position and ratios - Management expressed comfort with maintaining liquidity around the $4 billion mark, complementing growth with capital recycling [27][28][29] Question: Headwinds in U.S. permitting for onshore wind and solar - Management indicated no slowdown in solar deployment, while acknowledging some permitting delays for onshore wind [34][35][36] Question: Realized hydro prices and future expectations - Management expects an increase in hydro prices due to high demand and new long-term contracts coming online [37][39] Question: Capital recycling and repeat customers - Management confirmed that capital recycling activities have become a consistent source of funding and earnings, with frameworks established for future sales [40][41][43] Question: Battery storage development and M&A opportunities - Management highlighted a strong organic development pipeline for batteries, with a focus on long-term contracts rather than merchant arbitrage [61][63] Question: Offshore wind opportunities - Management is evaluating offshore wind opportunities, particularly in Europe, while ensuring appropriate risk-return profiles [65][66] Question: Impact of PJM backstop auction on development - Management views the PJM auction as a reflection of energy demand, potentially facilitating new capacity additions, which is positive for the business [70][72]

Year Ended December 31, 2025 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Supplemental Information contains forward-looking statements and information, within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, "safe harbor" provisions of the United States Private ...

Core Insights - Brookfield Renewable Partners reported record financial results for 2025, highlighting its leadership in providing clean and reliable energy solutions to governments and corporations [2][3] - The company signed a Hydro Framework Agreement with Google to deliver up to 3,000 megawatts of hydro capacity, reflecting strong demand from hyperscalers for clean energy [4][7] Financial Performance - For the twelve months ended December 31, 2025, Brookfield Renewable reported Funds From Operations (FFO) of $1,334 million, or $2.01 per unit, representing a 10% increase year-over-year [3][4] - The net income attributable to unitholders for the same period was a loss of $19 million, compared to a loss of $464 million in 2024 [3][4] Operating Segments - The hydroelectric segment generated $607 million in FFO, up 19% year-over-year, driven by higher revenue and stronger generation in Canada and Colombia [4][7] - The wind and solar segments combined generated $648 million in FFO, benefiting from acquisitions and development activities [4][7] - The distributed energy, storage, and sustainable solutions segments contributed $614 million in FFO, nearly a 90% increase from the previous year [4][7] Strategic Initiatives - The company committed or deployed up to $8.8 billion across strategic technologies in core markets, enhancing its growth potential [5][6] - Brookfield Renewable executed a record ~$4.5 billion in asset recycling, generating expected proceeds that significantly exceeded invested capital [6][7] Capacity Expansion - The company delivered approximately 8,000 megawatts of new capacity globally in 2025, a 20% increase year-over-year, and expects to achieve a run-rate of ~10,000 megawatts per year by 2027 [7][8] - Brookfield Renewable's partnerships with leading corporates and governments are expected to drive further growth in large-scale clean energy solutions [5][7] Liquidity and Capital Structure - As of December 31, 2025, the company maintained $4.6 billion in available liquidity and completed over $37 billion in financings, optimizing its capital structure [9][14] - The company reaffirmed its BBB+ investment grade rating with major rating agencies during 2025 [14] Distribution Declaration - The next quarterly distribution is set at $0.392 per LP unit, reflecting a more than 5% increase, bringing the total annual distribution per unit to $1.568 [10][11]

Core Insights - The company has announced a strategic partnership with the US government to reinvigorate the nuclear power industrial base, with an investment value of at least $80 billion aimed at constructing new Westinghouse nuclear reactors in the United States [1][14][18] - The partnership is expected to enhance Westinghouse's position as a leading provider in the nuclear sector, contributing to significant earnings growth and long-term recurring cash flows [20][22][23] - There is a growing demand for electricity driven by electrification, reindustrialization, and the needs of hyperscalers, which positions the company well to capitalize on opportunities in nuclear power [2][3][4] Investment and Financial Performance - The company generated $302 million in funds from operations (FFO) during the quarter, reflecting a 10% year-over-year increase, and is on track to meet its growth target of over 10% FFO per unit by 2025 [4][24] - The hydroelectric segment performed strongly, generating $119 million in FFO, up over 20% from the previous year, driven by solid generation and higher pricing [24] - The company has executed $7.7 billion in financing during the quarter, with a total of $38 billion over the past twelve months, indicating strong investor demand for its high-quality assets [27][28] Nuclear Power Expansion - The partnership with the US government aims to construct 10 large-scale reactors by 2030, which is expected to significantly enhance the value of Westinghouse and create a stable cash flow from fuel and maintenance services over the reactors' lifespans [14][19][20] - Westinghouse currently services over 50% of the global nuclear fleet, and its technology is used in more than two-thirds of operating nuclear reactors worldwide, positioning it as a key player in the nuclear industry [15][16] - The company is also exploring the development of two partially constructed BC summer nuclear reactors, which represents another growth opportunity for Westinghouse [5][6] Market Dynamics and Opportunities - The demand for reliable and sustainable energy sources is increasing, particularly from hyperscalers, which is driving the need for diverse energy solutions, including nuclear power [2][3][6] - The company is well-positioned to capture the growing demand for hydroelectric power, with approximately five terawatt hours of generation coming up for recontracting [7][8] - The cost of battery storage has decreased by over 50% in the past year, leading to increased interest in long-term capacity contracts, which the company is actively pursuing [10][11] Strategic Initiatives - The company is focused on maintaining high levels of liquidity and access to capital to capitalize on growth opportunities in the energy sector [31] - The strategic partnership with the US government is expected to catalyze further investment in the nuclear supply chain, enhancing the overall growth prospects for the nuclear sector [20][21][23] - The company continues to evaluate opportunities for acquiring hydro assets that align with its portfolio, indicating a proactive approach to expanding its renewable energy capabilities [8][9]

Financial Data and Key Metrics Changes - The company generated $302 million of funds from operations (FFO) during the quarter, or $0.46 per unit, representing a 10% year-over-year increase [3][20] - The hydroelectric segment delivered FFO of $119 million, up over 20% from the prior year [20] - The wind and solar segments generated a combined $177 million of FFO, supported by acquisitions, although offset by the sale of wind assets in the U.S., Spain, and Portugal [21] Business Line Data and Key Metrics Changes - The hydroelectric segment's strong performance was driven by solid generation from Canadian and Colombian fleets and higher pricing across U.S. operations [20] - The distributed energy, storage, and sustainable solutions segments generated FFO of $127 million, up from the prior year, supported by growth from the Neoen acquisition and strong performance at Westinghouse [21] - The company signed contracts to deliver approximately 4,000 GWh per year, including a significant 20-year contract with Microsoft [23] Market Data and Key Metrics Changes - There is accelerating demand for power across nearly all markets, driven by electrification, reindustrialization, and demand from hyperscalers [4][5] - The company is well-positioned to capture increasing demand for hydro capacity, with approximately five terawatt hours of generation coming up for recontracting [8] - Battery storage costs have decreased by more than 50% in the past 12 months, leading to increased interest in long-term capacity contracts [9] Company Strategy and Development Direction - The company is focusing on strategic investments in critical technologies to support energy demand and grid reliability [3] - A strategic partnership with the U.S. government aims to support the deployment of new Westinghouse nuclear reactors, with an investment value of at least $80 billion [5][12] - The company is committed to maintaining high levels of liquidity and access to capital to capitalize on compelling opportunities [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects of the business, driven by strong demand for clean, dispatchable base load power [11][82] - The partnership with the U.S. government is expected to catalyze growth in the nuclear sector, enhancing Westinghouse's position as a leading technology provider [19][61] - Management noted that while there is intent to accelerate permitting processes, progress has been limited but is expected to improve [28][29] Other Important Information - The company executed $7.7 billion in financings during the quarter, bringing total financings over the last 12 months to $38 billion [22] - The company is actively pursuing capital recycling opportunities, having closed sales and signed agreements expected to generate $2.8 billion [24] - The company anticipates significant asset recycling activities in North America, Western Europe, Australia, and India over the next two to three quarters [70] Q&A Session Summary Question: Improvements in permitting pace in the U.S. - Management noted that while there is intent to accelerate permitting, progress has been limited but is expected to improve [28][29] Question: Data center power discussions outside the U.S. - Management indicated that discussions are occurring globally, with significant activity in Western Europe, Australia, India, and South America [30][31] Question: Timeline for U.S. buildout associated with the Westinghouse agreement - Management expects the first projects to begin development in the next quarter or two, with revenues starting relatively quickly [35][38] Question: Capital involvement in the Santee Cooper project - Management stated that any investment would require appropriate protections around cost overruns and key risks [40][41] Question: Potential for additional hydro deals with Microsoft - Management confirmed that the Microsoft Framework Agreement includes hydro and more deals could be expected in the future [48] Question: Engagement with stakeholders regarding the U.S. government partnership - Management reported a positive reception from construction providers, technology suppliers, and capital providers regarding participation in new nuclear projects [52] Question: Commitment of the U.S. government to the $80 billion backstop - Management expressed confidence that the government is committed to catalyzing the growth of nuclear power generation and the supply chain [60][61] Question: Expected margins during different stages of reactor development - Management indicated that the energy systems division of Westinghouse typically operates at a 20% margin during the development and construction period [64] Question: Changes in project eligibility for federal tax credits - Management confirmed that they have safe-harbored their U.S. development pipeline out to 2029 and are monitoring developments regarding FEOC [66][67] Question: Valuations in private markets versus public markets - Management noted that demand and valuations for high-quality operating cash-generative renewables assets are significantly higher in private markets than in public markets [68][69]

Financial Data and Key Metrics Changes - The company generated $302 million of Funds From Operations (FFO) during Q3 2025, or $0.46 per unit, representing a 10% year-over-year increase [4][20] - The hydroelectric segment delivered FFO of $119 million, up over 20% from the prior year, driven by solid generation and higher pricing [20] - The wind and solar segments generated a combined FFO of $177 million, supported by acquisitions, although offset by the sale of wind assets in various regions [21] Business Line Data and Key Metrics Changes - The hydroelectric segment's strong performance reflects growing demand for scale base load power and improved pricing [20] - The distributed energy, storage, and sustainable solutions segments generated FFO of $127 million, up from the prior year, supported by growth from acquisitions [21] - The company signed contracts to deliver approximately 4,000 GWh per year, including a significant 20-year contract with Microsoft [23] Market Data and Key Metrics Changes - The company is seeing accelerating demand for power across nearly all markets, driven by electrification, reindustrialization, and demand from hyperscalers [5][6] - The demand for hydro capacity is increasing as hyperscalers seek reliable and sustainable energy sources [8][9] - The company is well-positioned to capture increasing demand for hydro generation, with approximately 5 TWh of generation coming up for recontracting [9] Company Strategy and Development Direction - The company is focusing on strategic investments in critical technologies to support energy demand and grid reliability [4] - A strategic partnership with the U.S. government aims to reinvigorate the nuclear power industrial base, with an investment value of at least $80 billion [6][13] - The company is committed to maintaining high levels of liquidity and access to capital to deploy scale capital when opportunities arise [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects of the business, driven by the increasing demand for clean, dispatchable baseload power [12][81] - The company anticipates that the partnership with the U.S. government will catalyze growth in nuclear power generation both domestically and globally [61] - Management noted that while there is intent to accelerate permitting processes, progress has been limited but is expected to improve [28][29] Other Important Information - The company closed an incremental investment into Isagen, increasing its stake in a hydro business with a strong growth outlook [10] - The company executed $7.7 billion in financings during the quarter, bringing total financings over the last 12 months to $38 billion [22] - The company is actively pursuing capital recycling opportunities, having closed sales and signed agreements expected to generate $2.8 billion [24] Q&A Session Summary Question: Improvements in permitting pace in the U.S. - Management noted that while there is intent to accelerate permitting, progress has been limited but is expected to improve [28][29] Question: Data center power discussions outside the U.S. - Management indicated that discussions about adding power for data centers are occurring globally, with significant activity in Western Europe, Australia, India, and South America [30][31] Question: Timeline for U.S. buildout associated with the Westinghouse agreement - Management expects the first projects to begin development in the next quarter or two, with revenues starting relatively quickly [35][38] Question: Capital investment in the Santee Cooper project - Management stated that any investment would require appropriate protections around cost overruns and key risks [40][41] Question: Potential for Brookfield to be a source of capital for nuclear projects - Management expressed confidence in Brookfield's position to play a significant role in nuclear power growth, contingent on obtaining necessary protections [44][46] Question: Contracting existing hydro assets versus building new wind and solar - Management confirmed that the Microsoft Framework Agreement included hydro and indicated potential for more hydro deals in the future [48] Question: Engagement with stakeholders regarding the U.S. government partnership - Management reported positive reception from construction and technology providers regarding participation in new nuclear projects [52][54] Question: Expected margins during different stages of reactor development - Management indicated that Westinghouse's Energy Systems Division typically operates at a 20% margin during the development and construction period [64] Question: Changes in project eligibility for federal tax credits - Management confirmed clarity around safe harboring for the U.S. development pipeline and is monitoring FEOC definitions [66][67] Question: Valuations in private markets versus public markets - Management noted that valuations for high-quality operating cash-generative renewables assets are significantly higher in private markets [68][70] Question: Nuclear deployment strategy and potential growth - Management indicated that nuclear currently represents about 5% of FFO but is expected to grow over time as demand for clean energy increases [74][75]

Financial Data and Key Metrics Changes - The company generated $302 million of funds from operations (FFO) during the quarter, or $0.46 per unit, representing a 10% year-over-year increase [3][21] - The hydroelectric segment delivered FFO of $119 million, up over 20% from the prior year [21] - The wind and solar segments generated a combined $177 million of FFO, supported by acquisitions, although offset by the sale of wind assets in various regions [21] Business Line Data and Key Metrics Changes - The hydroelectric segment's strong performance was driven by solid generation from Canadian and Colombian fleets, higher pricing in the U.S., and increased earnings from commercial activities [21] - The distributed energy, storage, and sustainable solutions segments generated FFO of $127 million, reflecting growth from acquisitions and strong performance at Westinghouse [21] Market Data and Key Metrics Changes - There is accelerating demand for power across nearly all markets, driven by electrification, reindustrialization, and demand from hyperscalers [4][6] - The company is well-positioned to capture increasing demand for hydro capacity, with approximately five terawatt hours of generation coming up for recontracting [9] Company Strategy and Development Direction - The company is focusing on strategic investments in critical technologies to support energy demand and grid reliability, particularly in nuclear energy [6][10] - A strategic partnership with the U.S. government aims to support the construction of new Westinghouse nuclear reactors, with an investment value of at least $80 billion [14][17] - The company is also exploring opportunities in battery storage, with costs decreasing significantly and an increase in long-term capacity contracts [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects of the business, highlighting the strong demand for clean, dispatchable base load power and the company's strategic positioning in the nuclear sector [12][85] - The company anticipates significant earnings growth from the Westinghouse partnership and expects to see contributions from this agreement relatively quickly [39][63] Other Important Information - The company maintained strong liquidity of $4.7 billion and a sector-leading balance sheet, reaffirming its BBB Plus investment-grade rating [21][23] - The company executed $7.7 billion in financings during the quarter, reflecting strong investor demand for its high-quality assets [23][24] Q&A Session Summary Question: Improvements in permitting pace in the U.S. - Management noted that while there is intent to accelerate permitting, progress has been limited but is expected to improve over time [30][31] Question: Data center power discussions outside the U.S. - Management indicated that discussions are occurring globally, with significant activity in Western Europe, Australia, India, and South America [32] Question: Timeline for U.S. buildout associated with the Westinghouse agreement - Management expects the first projects to begin development in the next quarter or two, with revenues starting relatively quickly [36][39] Question: Capital investment in nuclear projects - Management emphasized the need for appropriate protections around cost overruns and key risks before investing in nuclear projects [42][46] Question: Contracting existing hydro assets versus building new wind and solar - Management confirmed that the Microsoft Framework Agreement included hydro and indicated potential for more hydro deals in the future [48][49] Question: Engagement with stakeholders regarding the U.S. government partnership - Management reported positive reception from construction and technology providers regarding participation in new nuclear projects [55] Question: Federal tax credits eligibility for U.S. development pipeline - Management confirmed clarity around safe harboring for the U.S. development pipeline and expressed confidence in their position [69] Question: Valuations in private markets versus public markets - Management noted that demand and valuations for high-quality operating cash-generative renewables assets are significantly higher in private markets [71][73] Question: Nuclear deployment strategy and potential growth - Management indicated that nuclear currently represents about 5% of the business and is expected to grow over time, with no internal constraints on capital allocation [78][80]

Financial Performance - Funds From Operations (FFO) reached $302 million, a 10% increase compared to the previous year, driven by improved hydroelectric results, growth activities, and inflation-linked cash flows[8] - Normalized FFO, adjusted for generation, was $352 million[8] - Available liquidity stands at approximately $4.7 billion[8] Operational Highlights - Capacity reached 48,673 MW[8] - Actual renewable generation was 7,186 GWh[8] - The company delivered approximately 1,800 MW of new capacity globally and expects to deliver approximately 8,000 MW in 2025[11] Growth and Development - Approximately $2.1 billion was committed or deployed across multiple investments[13] - The company completed the acquisition of a 15% incremental stake in Isagen for $1 billion[13] - The company raised approximately $1.1 billion across three hydro assets through upfinancings[14] Capital Allocation - Distributions of $0.373 per LP unit ($1.492 annualized) represent an over 5% increase from the prior year[8] - The company executed approximately $7.7 billion of financings in the quarter, bringing year-to-date financings to $27 billion[14] - The company closed and agreed to sell assets that will generate expected proceeds of approximately $2.8 billion[14] Contract Profile - Approximately 90% of generation, on a proportionate basis, is contracted for an average term of 13 years[19] - Approximately 70% of revenues are indexed to inflation[19]

Core Insights - Brookfield Renewable Partners reported strong financial results for Q3 2025, with a focus on strategic partnerships and growth in renewable energy technologies [2][4] - The company announced a partnership with the U.S. Government to deploy Westinghouse's reactor technology, which is expected to drive significant growth [2][9] - The financial performance was bolstered by solid operating results, M&A activities, and a diverse global fleet [4][6] Financial Performance - For Q3 2025, Brookfield Renewable reported a Funds From Operations (FFO) of $302 million, or $0.46 per unit, representing a 10% increase year-over-year [3][4] - The net loss attributable to unitholders for the quarter was $120 million, compared to a loss of $181 million in Q3 2024 [3][22] - Total revenues for Q3 2025 were $1.596 billion, up from $1.470 billion in the same quarter of 2024 [21] Operational Highlights - The hydroelectric segment generated FFO of $119 million, driven by strong performance in Canada and Colombia, and higher pricing in the U.S. [4][26] - Wind and solar segments combined generated FFO of $177 million, with growth from acquisitions offset by prior year asset sales [4][26] - Distributed energy, storage, and sustainable solutions segments contributed $127 million in FFO, with a year-to-date increase of over 30% [4][26] Strategic Initiatives - The company committed or deployed up to $2.1 billion across various investments, including a significant investment in Isagen and advancements in battery development [6][8] - Brookfield Renewable executed an asset recycling program, generating approximately $2.8 billion in expected proceeds from transactions since Q3 2025 [7][8] - The company maintained robust liquidity with approximately $4.7 billion available, enhancing its capital structure for future growth [8][10] Future Outlook - Brookfield Renewable expects to achieve a target of over 10% FFO per unit growth for the year, while diversifying and improving cash flow quality [4][6] - The company anticipates delivering around 8,000 megawatts of new projects in 2025, with significant capacity additions across various renewable segments [5][6]