Brookfield Renewable Partners L.P. (BEP) Earnings

Management highlights

### Overall Financial and Operational Execution - Delivered record H1 2026 financial results, with robust capital deployment, and the highest levels of development activity and asset recycling in company history. The balance sheet was further strengthened, ending the quarter with strong liquidity to capture ongoing market growth opportunities. - Commissioned 1.3 gigawatts of new renewable capacity in Q2 2026, and signed power purchase agreements for 2.6 gigawatts of capacity from the advanced development pipeline. Deployed or committed $5 billion to growth initiatives ($760 million net to BEP), highlighted by the acquisition of IPA, a leading North American standalone battery storage platform. Completed or agreed to asset sales generating ~$2.2 billion in total proceeds ($630 million net to BEP) at or above target return thresholds. ### Market Fundamentals and Strategic Positioning - Management noted accelerating global electricity demand paired with insufficient new capacity additions and underdeveloped grid infrastructure, creating a supply-demand imbalance that reinforces the value of Brookfield Renewable's diversified, global, scaled platform that can deliver integrated energy solutions on time and on budget. - The company holds leading positions across multiple high-demand clean energy technologies: it is one of the largest developers of low-cost solar and wind, owns one of the world's largest hydro portfolios providing dispatchable baseload power, is building out a leading global battery storage platform to improve grid reliability, and owns Westinghouse, the world's leading nuclear technology provider. ### Nuclear Growth Milestones - The U.S. Department of Energy committed up to $1.5 billion in loan facilities to support long lead equipment procurement for up to 10 Westinghouse AP1000 reactors in the U.S., building on a prior partnership for ~$80 billion in new reactor deployment support. This program accelerates project timelines by up to three years, catalyzes supply chain investment, reduces costs, and improves future execution. - Management is now advancing individual projects, working with seven utility partners to execute long lead equipment orders, and developing commercial frameworks for the next wave of U.S. nuclear development. Westinghouse is also positioned to pursue global growth opportunities, including new reactors in Saudi Arabia following the recent U.S.-Saudi nuclear cooperation agreement. ### Battery Storage Expansion - The $3 billion acquisition of IPA ($420 million net to BEP) doubles Brookfield Renewable's operating and under construction battery capacity to ~6 gigawatts, and expands its total development pipeline by over 30% to more than 80 gigawatts. Combined with the 2024 Nuion acquisition, this establishes Brookfield Renewable as the leading global utility-scale battery storage platform, with immediate accretion to earnings aligned with the company's disciplined investment framework. ### Balance Sheet and Capital Recycling - Completed ~$12 billion in total financings during the quarter, ending with over $5.1 billion in available liquidity. Closed Brookfield Renewable's largest ever private placement financing, a $1.2 billion long-term refinancing for the Safe Harbor hydro portfolio, and completed other successful regional issuances demonstrating access to diverse global capital. - Capital recycling remains a core competitive advantage: management crystallizes value from developed, contracted assets and redeploys capital into higher return growth opportunities. Record first half proceeds were generated, with multiple transactions completed in Q2 including sales to the new Northview Energy platform and non-core asset monetizations. ### Corporate Simplification Plan - Management is moving forward with a plan to combine BEP and BEPC into a single publicly traded corporation, subject to shareholder/unit holder approvals. The simplification is expected to be tax-deferred for North American investors, improve trading liquidity, increase index fund/ETF demand, simplify investor analysis, broaden access for investors preferring traditional corporate structures, and enhance governance, with no changes to dividends, management fees, outstanding securities, and no meaningful incremental cost to the business.

Guidance

Management did not provide explicit numerical guidance revisions for full-year 2026 financial performance in this call. The following forward-looking statements were provided: - Long-term demand growth is expected across all core clean energy segments (renewables, battery storage, nuclear) driven by accelerating global electricity demand and the ongoing global energy transition, creating a large multi-year pipeline of investment opportunities for Brookfield Renewable. - Long-term levelized cost of energy (LCOE) for battery storage is expected to continue declining as supply chains scale and technology improves, even with potential short-term volatility from input cost fluctuations. - The corporate simplification transaction is expected to close by the end of 2026, pending required approvals, with shareholder votes scheduled for October 2026. - Meaningful up-financings for the Ontario hydro portfolio are expected over the next several quarters under the provincial system operator's contracting program. - Completion of remaining asset sale transactions (the final third of the 2.1 gigawatt sale to Northview Energy, and the remaining balance of the non-core Maine hydro portfolio sale) is expected in Q3 2026.

Segment performance

In Q2 2026, Brookfield Renewable delivered total Funds From Operations (FFO) of $421 million, a 13% year-over-year increase, or $0.62 per unit, an 11% year-over-year increase. By segment: 1) Hydroelectric: Generated $336 million in FFO, accounting for ~79.8% of total Q2 FFO. Results were supported by strong generation at the Canadian fleet, ongoing earnings growth from the Colombian portfolio driven by favorable market fundamentals and increased Isagen ownership, and realized gains from the sale of a 25% interest in a non-core Maine hydro portfolio, which offset weaker hydrology at U.S. operations. 2) Solar and Wind: Generated $166 million in FFO, accounting for ~39.4% of total Q2 FFO. Growth came from contributions of projects commissioned in the prior 12 months and realized gains from completed asset sales during the quarter. 3) Distributed Energy, Storage, and Sustainable Solutions: Contributed $84 million in FFO, accounting for ~20% of total Q2 FFO. This segment benefited from strong development activity across the portfolio, and 60% year-over-year FFO growth (excluding a large 2025 Q2 new reactor licensing fee) at Westinghouse, driven by rising global demand for nuclear fuel and maintenance services, and increased engineering/design work for new reactor construction.

Risks & headwinds

Management did not explicitly discuss material new risks or operational failures in this earning call. It noted standard caveats that forward-looking statements are subject to known and unknown risks that could cause actual future results to differ materially from projected outcomes, and encouraged investors to review the company's regulatory filings for detailed risk disclosures. The only implied risk discussed related to potential short-term volatility in battery input costs that could create temporary fluctuations in battery LCOE.

Analyst Q&A

• Q: The analyst asked for context on the $175 million of other income in the hydro segment, noting that it appears to be increasingly driven by asset sale gains as capital recycling becomes more programmatic, and requested clarity on how to evaluate the scale of this income quarter-to-quarter. /

  A: The CFO confirmed that other income predominantly represents gains on assets the company developed internally, supplemented by gains from disposals of non-core assets. This framing covers the majority of other income recognized in the quarter, and it does not include all sale gains that may appear in periodic results.

• Q: The analyst asked how Brookfield diversifies battery equipment suppliers to mitigate procurement risk, and what the expected trajectory for battery LCOE is over the next few years. /

  A: The CEO noted that as one of the world's largest procurers of utility-scale battery equipment, Brookfield has relationships with all major global and domestic suppliers, similar to its approach for wind and solar. The company is entering large-scale global framework agreements to ensure on-time, on-budget procurement at lower costs than peers. Long-term, LCOE will continue to decline as the supply chain scales, though short-term input cost dynamics may create temporary volatility.

• Q: The analyst asked for details on voting requirements, Brookfield's ownership stake, and approval conditions for the proposed corporate simplification transaction. /

  A: The CFO explained that two-thirds approval is required from both BEP unit holders and BEPC shareholders, with votes scheduled for October 2026. Brookfield holds a 47% look-through stake in BEP and a ~10% stake in BEPC, both of which will be voted in favor of the transaction. The transaction only requires BEP unit holder approval to proceed; BEPC shareholder approval is not a required condition, and closing is targeted for the end of 2026 if approved.