Jefferies forecasts strong third-quarter results for EDP and EDP Renováveis

Investment bank Jefferies anticipates strong third-quarter results for EDP and EDP Renováveis. For EDP, the bank projects a third-quarter EBITDA of €1.5 billion, representing a 26% year-on-year increase. This growth is expected to be driven by the strong performance of FlexGen, aided by a 34% increase in hydroelectric production, alongside gains from asset rotation.

Jefferies further projects that EDP's third-quarter net income could reach €521 million, a 115% increase compared to the previous year. Regarding EDP Renováveis, profits are expected to be bolstered by asset rotation gains. The bank has raised its 2026 EBITDA projection for EDP to the upper end of its range and increased its 2026 net income projection for the company by 6%, while maintaining target prices for both stocks.