Brookfield Renewable Partners (BEP) Q2 2025 Earnings Call August 01, 2025 09:00 AM ET Company ParticipantsConnor Teskey - CEO of Renewable Power & Transition & President of Brookfield Asset ManagementWyatt Hartley - Managing Partner and Co-President - Renewable Power & TransitionPatrick Taylor - Managing Partner & CFO - Brookfield’s Renewable Power & Transition GroupSean Steuart - Managing DirectorMark Strouse - Executive DirectorJon Windham - Head - Alternative Energy & Environmental Services Equity Resear ...

Financial Data and Key Metrics Changes - The company reported funds from operations (FFO) of $371 million or $0.56 per unit, representing a 10% year-over-year increase driven by strong hydro generation and growth initiatives [16] - FFO per unit is expected to continue growing at a target rate of over 10% for the year [6] - The company ended the quarter with $4.7 billion of available liquidity, indicating strong financial flexibility [18] Business Line Data and Key Metrics Changes - The hydroelectric segment saw FFO increase by over 50% from the prior year, attributed to strong performance from U.S. and Colombian fleets [16] - The Distributed Energy, Storage, and Sustainable Solutions segments delivered FFO growth of almost 40% year-over-year, driven by Westinghouse's performance in the nuclear sector [18] - Wind and solar segments experienced flat FFO compared to the prior year due to asset dispositions and gains from the previous year [17] Market Data and Key Metrics Changes - The company has commissioned 2.1 gigawatts of new renewable energy capacity in the quarter and anticipates bringing on approximately 8 gigawatts in 2025, a record for the business [7] - The company is witnessing a significant supply-demand imbalance for energy across its operational regions, necessitating substantial expansion in energy generation [5] Company Strategy and Development Direction - The company is focusing on a safe harboring strategy to secure tax credit eligibility for nearly all U.S. projects through 2029 [5] - The company aims to deepen relationships with large power buyers, leveraging its diversified portfolio across hydro, wind, solar, nuclear, and battery storage [8] - The company is actively pursuing M&A opportunities to enhance its hydro capabilities and meet growing energy demand [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the robust demand for power, which is expected to drive the development of all forms of energy [8] - The company is well-positioned to meet exponential energy demand with a pipeline of over 230 gigawatts of projects, including significant battery storage solutions [6] - Management highlighted the increasing sophistication of large tech companies in seeking baseload power solutions, indicating a shift in procurement strategies [30] Other Important Information - The company successfully executed its largest project financing, raising EUR 6.3 billion for an offshore wind development project in Poland [19] - The company is committed to delivering long-term total returns of 12% to 15% for investors while maintaining disciplined capital allocation [20] Q&A Session Summary Question: Can you accelerate the pace of development in light of recent capacity auction results? - Management indicated that the supply-demand imbalance is a persistent issue and they are pulling forward projects as quickly as possible while leveraging M&A capabilities and partnerships with large power buyers [23][25] Question: What is the hydro M&A environment in the U.S.? - Management noted that the hydro market is becoming more liquid and they are positioned to pursue opportunities that fit their framework agreements with confidence [36][37] Question: How are discussions with tech companies changing regarding new facilities? - Management observed an increased appetite for diverse energy solutions beyond wind and solar, with a focus on integrated relationships that span multiple energy sources [77][78] Question: What are the key milestones for nuclear development? - Management highlighted the U.S. government's intention to start construction on 10 new reactors by the end of the decade, positioning Westinghouse as a key player in this initiative [70][73]

Brookfield Renewable Partners (BEP) Q2 2025 Earnings Call August 01, 2025 09:00 AM ET Speaker0Thank you for standing by and welcome to the Brookfield Renewable Second Quarter twenty twenty five Results Conference Call and Webcast. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during this session, you'll need to press 11 on your telephone. If your question has been answered and you'd like to remove yo ...