Brookfield Renewable Corporation Q4 FY2025 earnings call

• 2025 was an excellent year with strong financial results, delivering $2.01 of FFO per unit, up 10% year over year. - Deployed or committed a record $8.9 billion or $1.9 billion in growth net to BEP, including privatization of NayON, carve-out of Geronimo Power, and investment in Isahan. - Signed contracts on over nine gigawatts of generation capacity, brought online over eight gigawatts of new capacity globally. - Achieved $4.5 billion of proceeds from asset recycling. - Energy market has shifted from focus on energy transition to energy addition, with solar, onshore wind, hydro, nuclear, and batteries playing key roles. - Strong balance sheet with $4.6 billion in available liquidity, executed over $37 billion in financings in 2025, including $2.2 billion in investment-grade financings. - Scaled capital recycling program, generating $4.5 billion of proceeds from asset recycling in 2025.

Hydroelectric segment: Delivered FFO of $6.67 million, up 19% year over year, benefited from solid generation in Canadian and Colombian fleets, higher revenues from commercial initiatives, and gains from selling a noncore hydro portfolio, offset by weaker hydrology in the US. Wind and solar segments: Combined $648 million of FFO, supported by acquisitions of NayON and Geronimo Power, and investment in a portfolio of contracted offshore wind assets in the UK, but offset by gains on sales recorded in prior year results. Distributed energy storage and sustainable solutions segment: Generated record $614 million, up almost 90% year over year, driven by growth through development, acquisition of Nayeon, and strong performance at Westinghouse.

• Annual distribution increased by over 5% to $1.468 per unit. - Expect to continue scaling capital recycling and generating proceeds from asset sales. - Battery outlook accelerated to 10 gigawatts, driven by declining battery costs and grid incentives. - Confident in growth from hydro, nuclear, and battery storage investments, leveraging strong access to capital.

Q: Sean Steuart asked about progress on the Microsoft framework agreement and balance sheet liquidity.

A: Connor Teskey noted strong corporate demand and that the demand for power from corporates, especially high scalers, continues to accelerate. Patrick Taylor said they are comfortable with around $4 billion in liquidity, complemented by capital recycling.

Q: Nelson Ng asked about US permitting for onshore wind/solar and hydro price outlook.

A: Connor Teskey said solar is accelerating in the US, onshore wind permitting has slowed from the federal government but projects are still ongoing, and hydro prices are expected to increase with new long-term contracts.

Q: Robert Hope asked about the battery outlook and M&A in the power addition environment.

A: Connor Teskey said batteries are the fastest growing part of the platform, driven by declining costs and grid incentives, and there are opportunistic M&A opportunities in growth markets.

Q: Baltej Sidhu asked about attractive risk-adjusted opportunities and offshore wind.

A: Connor Teskey discussed opportunities in public companies, carve-outs from utilities, and developer bifurcation, and mentioned evaluating offshore wind opportunities while comparing investment profiles.

Q: Anthony Crowdell asked about the PJM backstop auction impact.

A: Connor Teskey said the auction reflects energy demand tightness and should accelerate new capacity coming online.