EDP Renováveis (ENXTLS:EDPR) Is Down 6.4% After Strong Revenue and Lower Net Income – Has Profitability Become a Concern?

• On November 5, 2025, EDP Renováveis reported its earnings for the first nine months of the year, with sales reaching €1,704 million and revenue rising to €2,012 million, both up from the previous year, while net income fell from €210 million to €107 million.
• This mixed performance, with higher revenue but much lower net income, underlines potential challenges balancing top-line growth against cost and profitability pressures.
• We’ll explore how the company’s strong sales yet sharp net income decline could affect its investment narrative and future outlook.

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EDP Renováveis Investment Narrative Recap

Owning shares in EDP Renováveis often means believing in the accelerating transition to renewable energy and the company’s ability to profitably scale its clean power portfolio across global markets. The latest earnings news, with revenue growth but a sharp fall in net income, does not appear to change the most important short-term catalyst: expanding capacity and locking in long-term power purchase agreements. However, this result does reinforce the biggest near-term risk, persistent pressure on profitability, particularly from lower electricity prices and capital gains.

Among the latest company developments, EDP Renováveis recently announced a 1-for-11.90476 stock split in April 2025. While not directly affecting the profit or loss figures, this move could improve liquidity and broaden investor access, which gains relevance if the company sustains its top-line growth and addresses cost headwinds as a key catalyst.

However, with net income under pressure from falling electricity prices and asset rotation gains, investors should also be aware that...

Read the full narrative on EDP Renováveis (it's free!)

EDP Renováveis' outlook anticipates €3.0 billion in revenue and €605.7 million in earnings by 2028. This projection requires a 13.3% annual revenue growth rate and an increase in earnings of €531.7 million from the current €74.0 million.

Uncover how EDP Renováveis' forecasts yield a €13.44 fair value, a 15% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community includes six fair value estimates for EDPR, ranging widely from €1.27 to €19 per share. As expectations for rising renewable energy capacity remain a central catalyst, these contrasting viewpoints highlight the importance of reassessing profitability and revenue growth assumptions in light of recent results.

Explore 6 other fair value estimates on EDP Renováveis - why the stock might be worth less than half the current price!

Build Your Own EDP Renováveis Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your EDP Renováveis research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free EDP Renováveis research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate EDP Renováveis' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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