Portugal's EDP upgrades recurring profit outlook again after strong earnings

By Sergio Goncalves

LISBON, Nov 6 (Reuters) - Portugal's largest utility EDP raised its full-year profit forecast for the third time this year on Friday, reflecting strong results so far and confidence that electrification and data centres will keep driving demand for its network and renewable businesses.

EDP raised its recurring net profit guidance to between €1.4 billion and €1.5 billion ($1.6 billion to $1.7 billion) from €1.4 billion seen in July after it reported a 22% rise in nine-month recurring net income on Thursday.

The utility said the higher net outlook reflected expectations that 2026 recurring earnings before interest, taxes, depreciation and amortization would reach €5.4 billion, above its previous €5.3 billion forecast.

EDP said in a statement that its third guidance upgrade this year was driven by "outperforming execution of its business plan across all segments".

CEO Miguel Stilwell d'Andrade told analysts the upgraded guidance also boosted EDP's confidence in its growth prospects for 2027 and 2028.

"We're also increasingly confident about the opportunities that come after 2028," he said, citing rising electricity demand driven by electrification, industrial projects and data centres.

Subsidiary EDP Renewables, the world's fourth-largest wind power producer, reported its nine-month recurring net profit more than doubled year-on-year to €439 million, on strong US growth and higher capital gains.

The CEO said EDP's US growth pipeline was "largely secured", supported by 6 gigawatts of wind and solar projects expected to come online between 2026 and 2030 "under safe-harbour provisions" preserving existing tax incentives, with additional opportunities from repowering up projects and development sites under EDP's control.

That pipeline represents almost 60% of EDP Renewables' installed capacity in the United States, Canada and Mexico and nearly a third of its 20.5 GW global fleet.

"The US is a key market for us ... and our growth is not dependent on taking additional development risk there," he said.

($1 = 0.8930 euros)

(Reporting by Sergio Goncalves; Editing by Emelia Sithole-Matarise and Tomasz Janowski)