Brookfield Renewable Partners Posts Wider-Than-Expected Q2 Loss

Brookfield Renewable Partners BEP reported second-quarter 2025 operating loss of 22 cents per unit, wider than the Zacks Consensus Estimate of a loss of 19 cents. The firm reported a loss of 28 cents per unit in the year-ago quarter.  

Total Revenues of BEP

Revenues of $974 million missed the Zacks Consensus Estimate of $979 million by 0.5%. However, the top line increased 17.3% from the year-ago quarter’s $830 million.

Highlights of BEP’s Q2 Earnings Release

BEP generated record Funds From Operations (“FFO”) of $371 million, up 10% year over year. This was due to strong underlying operating results across its business, underpinned by its stable, inflation-linked and contracted cash flows. BEP’s results also reflect the execution of its ongoing commercial contracting activities and growth initiatives. 

The firm’s hydroelectric segment delivered FFO of $205 million, up over 50% year over year on the back of strong performance by its U.S. and Colombian fleets with hydrology that was above the long-term average. 

BEP’s wind and solar segments generated a combined FFO of $184 million, with growth from development and acquisitions mostly offsetting the sale of one of its businesses and gains recognized last year on the sale of development assets.

Brookfield Renewable Partners’ distributed energy, storage, and sustainable solutions segments generated a combined FFO of $118 million, up 40%, driven by strong results from Westinghouse as the business continues to benefit from the growing global demand for nuclear energy.

Advanced commercial priorities secured contracts to deliver an incremental 4,300 gigawatt hours per year of generation, and signed the first-of-its-kind Hydro Framework Agreement with Google to deliver up to 3,000 megawatts of hydroelectric capacity in the United States.

BEP continued to execute its asset recycling program, generating $1.5 billion ($400 million net to Brookfield Renewable) in expected proceeds since the start of the second quarter, delivering strong returns and proceeds for reinvestment into growth.

BEP’s Financial Position

As of June 30, 2025, BEP had cash and cash equivalents of $1.91 billion compared with $3.14 billion as of Dec. 31, 2024.

As of June 30, 2025, BEP had available liquidity of nearly $4.7 billion, which indicates significant flexibility.

Year to date, BEP has successfully completed $19 billion of financings across the business, extending maturities and optimizing its capital structure.

BEP’s Zacks Rank

The firm currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Utility Releases

NRG Energy NRG is scheduled to report second-quarter results on Aug. 6, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.54 per share, which suggests a year-over-year increase of 4.1%.

NRG’s long-term (three to five years) earnings growth rate is 15.4%. The Zacks Consensus Estimate for 2025 earnings is pinned at $7.81 per share, which implies a year-over-year improvement of 17.6%.

Pinnacle West Capital Corporation PNW is scheduled to report second-quarter results on Aug. 6, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.58 per share, which implies a year-over-year decrease of 10.2%.

PNW’s long-term earnings growth rate is 2.12%. The Zacks Consensus Estimate for 2025 earnings is pinned at $4.53 per share, which implies a year-over-year decline of 13.6%.

Alliant Energy LNT is slated to report second-quarter results on Aug. 7, after market close. The Zacks Consensus Estimate for earnings is pegged at 62 cents per share, which implies a year-over-year increase of 8.8%.

LNT’s long-term earnings growth rate is 6.59%. The Zacks Consensus Estimate for 2025 earnings is pinned at $3.21 per share, which implies a year-over-year improvement of 5.6%.

 

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This article originally published on Zacks Investment Research (zacks.com).

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