Strong momentum should be confirmed by a strong margin in Q2. H1 2026 preview

Research evidence excerpt

Strong momentum should be confirmed by a strong margin in Q2. H1 2026 preview

J P M O R G A N Europe Equity Research

14 July 2026

EDP Neutral

EDP.LS, EDP PL

Strong momentum should be confirmed by a strong Price (13 Jul 26):€4.51

margin in Q2. H1 2026 preview Price Target (Dec-27):€4.70

EDP will report H1 results on 29 July after market closing. We expect EDP to report European Utilities & Clean Energy

ACa strong set of results in Q2, which should allow the company to report a broadly Javier Garrido

stable performance vs H1 2025 after the drop reported in Q1 due to an (34-91) 516-1557

exceptionally tough comp. In fact, we believe that the strength in operating margins javier.x.garrido@jpmorgan.com

in the integrated business in Iberia in Q2 should provide evidence to investors J.P. Morgan Securities plc

about the robustness of the outlook for H2, as the higher spreads seen in Q2 26 Specialist Sales contact details:

should be enhanced by the volume benefit from strong hydro in the reservoirs and

Ian Mitchell - Specialist Sales -solid demand. In our view, investors will likely see H1 numbers as a positive. European Energy

• Networks remain strong and Generation & Supply to deliver sequential (44-20)ian.e.mitchell@jpmorgan.com7134-1356

improvement. We estimate a 4.1% yoy rise in H1 recurring EBITDA to

€2,706m. The network business should continue to demonstrate similar trends

to those seen in the strong Q1, both in Iberia and Brazil. The difference should

now come from the liberalised businesses, where EDPR should benefit from

the strong North American profits and the first asset rotation gain of the year,

while the integrated business in Iberia should have more than offset the decline

in hydro volumes in Q2 with higher margins in both outright and spread

production.