Brookfield Renewable Announces Strong Second Quarter Results

Executive Summary

• Brookfield Renewable Partners L.P. reported second-quarter 2025 financial results, highlighting a record Funds From Operations (FFO) of $371 million for the quarter, representing a 10% year-over-year increase.
• The company secured a landmark Hydro Framework Agreement with Google to deliver up to 3,000 megawatts of hydroelectric capacity in the U.S., marking the largest framework agreement for the purchase of hydroelectricity ever.
• Significant capital recycling and investment activities occurred, including the sale of stakes in U.S. hydro assets and the Shepherds Flat wind farm, alongside an increase in ownership stake in Colombian utility Isagen.

Key Details

• Financial Performance (Q2 2025):
  • Funds From Operations (FFO): $371 million ($0.56 per unit), up 10% from $339 million ($0.51 per unit) in Q2 2024.
  • Net loss attributable to Unitholders: $(112) million (vs. $(154) million in Q2 2024).
  • Six-month FFO: $686 million ($1.04 per unit), up from $635 million ($0.96 per unit) in the prior year period.
• Strategic Agreements & Commercial Highlights:
  • Signed a Hydro Framework Agreement (HFA) with Google to deliver up to 3,000 MW of hydro power in the U.S.
  • Executed the first two contracts under the HFA for 670 MW from Holtwood and Safe Harbor facilities, securing 20-year contracts.
  • Advanced commercial priorities secured contracts for an incremental ~4,300 gigawatt hours per year of generation.
• Investments & Acquisitions:
  • Agreed to increase stake in Isagen (Colombian hydro platform) by up to $1 billion, raising ownership to approximately 38%. This is anticipated to be ~2% accretive to FFO per unit in 2026.
  • Acquired additional assets in the Neoen platform (Australia) and continued development activities.
• Asset Recycling & Dispositions:
  • Closed the sale of a 25% stake in the Shepherds Flat wind farm.
  • Reached agreements to sell two 25% stakes in a portfolio of stable, operating U.S. hydro assets, generating ~$520 million in expected proceeds ($250 million net to Brookfield Renewable).
  • In Australia, signed/executed sales generating ~$660 million in expected proceeds (~$60 million net).
  • Total expected proceeds from transactions closed or signed in 2025 are expected to exceed 2024 levels.
• Financing & Balance Sheet:
  • Ended the quarter with ~$4.7 billion in liquidity.
  • Issued C$250 million of 30-year hybrid notes at a coupon of 5.37% (tightest spread in Canada history).
  • Executed €6.3 billion (~$7 billion) project financing for Polenergia’s offshore wind development in Poland (largest ever for the business).
  • Raised $435 million via long-term, fixed-rate private placement for a U.S. hydro asset.
  • Year-to-date financings totaled $19 billion.
• Operational Metrics (Proportionate Results Q2 2025):
  • Hydroelectric FFO: $205 million (up >50% YoY), driven by above-long-term average hydrology in North America and Colombia.
  • Wind and Solar combined FFO: $184 million.
  • Distributed Energy, Storage, and Sustainable Solutions FFO: $118 million (up ~40% YoY), driven by Westinghouse nuclear services.
  • Total Renewable Actual Generation: 9,542 GWh (vs. 8,298 GWh in Q2 2024).
• Dividends:
  • Declared quarterly distribution of $0.373 per LP unit, payable September 30, 2025.
  • Declared equivalent quarterly dividend of $0.373 per share for Brookfield Renewable Corporation (BEPC).

Notable Quotes

• “We had another strong quarter and further solidified our position as a partner of choice to the largest buyers of clean power, signing a first of its kind agreement with Google to deliver up to 3,000 megawatts of hydro power in the U.S.—a testament to the unique capabilities we can provide to the best global businesses and technology companies,” said Connor Teskey, CEO of Brookfield Renewable.
• “We were also successful investing in a number of highly accretive platforms and assets, such as increasing our stake in Isagen, one of our world-class hydro businesses. With scale capabilities in hydro, nuclear, wind, solar and batteries, we continue to differentiate ourselves as the global leader in providing diverse and scaled energy solutions that are critical to energy grids and needed to meet the tremendous growth in electricity demand.”