EDP Renovaveis (AO) | Buy | EDPR exits Brazil, increasing focus on A-rated countries

Research evidence excerpt

EDP Renovaveis (AO) | Buy | EDPR exits Brazil, increasing focus on A-rated countries

News comment

Release date: 20 May 2026

Jose Porta

Equity Research Analyst

Buy +34 914 36 5113EDP Renovaveis jporta@keplercheuvreux.com

European Large CapsPortugal | Utilities Beta Profile: MCap: EUR14.5bn Selected List

Target Price: EUR15.00 Bloomberg: EDPR PL Reuters: EDPR.LS

Current Price: EUR13.75 Free float 21%

Up/downside: 9.1% Avg. daily volume (EURm) 26.9

YTD abs performance 14.2% Market data: 19 May 2026

52-week high/low (EUR) 14.67/8.55

EDPR exits Brazil, increasing focus on A-rated countries

Key points:

EDPR sells Brazil renewables platform to EDP for c. EUR1.5bn EV (small negative reading).

Transaction improves portfolio quality, leverage (by c. 0.5x) and is earnings accretive from year one (low-to-mid single digit level).

There was no Brazil growth embedded in EDPR’s 2026-28E (no capex allocation over that period)

Strategic portfolio reshaping

EDPR announced yesterday, after the close, the sale of 100% of EDPR Brasil to EDP Brasil, a fully owned subsidiary of parent EDP,

for c. R$4.1bn (c. EUR0.7bn equity value), implying an enterprise value of c. EUR1.5bn (or c. EUR0.86m/MW) for c. EUR1.8MW of

capacity (1.1GW onshore wind and 0.7GW utility-scale solar).

The deal is expected to close by year-end 2026, subject to customary conditions.

The transaction is fully aligned with EDPR’s strategic repositioning as presented at the CMD, where management explicitly shifted

capital allocation towards A-rated markets, namely the US and Europe, while acknowledging limited greenfield utility-scale

growth prospects in Brazil. In fact, at the November CMD, EDPR's management indicated that there would be hardly any capex

allocation to Brazil over 2026-28E.

Financial and strategic rationale