Q2 FY2026
Filed Jul 31, 2026Brookfield Renewable Reports Strong Second Quarter Results
Record Funds From Operations of $421 million, up 13% year-over-year, was supported by hydro performance, development, asset recycling and growth from newly commissioned projects. The period also included substantial deployment, development progress and liquidity, although IFRS net loss attributable to Unitholders widened to $213 million from $112 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenuesother | $1,710 million | – | – |
| Other incomeother | $246 million | – | – |
| Direct operating costsother | $(783) million | – | – |
| Management service costsother | $(77) million | – | – |
| Interest expenseother | $(658) million | – | – |
| Share of earnings (losses) from equity-accounted investmentsother | $45 million | – | – |
| Foreign exchange and financial instrument gainother | $4 million | – | – |
| Depreciationother | $(558) million | – | – |
| Net (loss) incomeother | $(287) million | – | – |
| Net loss attributable to Unitholdersother | $(213) million | – | – |
| Basic and diluted loss per LP unitother | $(0.37) | – | – |
| Funds From Operations (FFO)non-GAAP | $421 million | – | 13% |
| Funds From Operations per Unitnon-GAAP | $0.62 per unit | – | 11% per unit |
| Adjusted EBITDA attributable to Unitholdersnon-GAAP | $831 million | – | – |
| Renewable Actual Generationother | 9,378 GWh | – | – |
| Renewable LTA Generationother | 10,151 GWh | – | – |
| Cash provided by operating activitiesother | $526 million | – | – |
| Investment in property, plant and equipmentother | $(1,326) million | – | – |
| Disposal of associates and other assetsother | $716 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| HydroelectricFFO was $336 million, driven by strong generation from the Canadian fleet, robust Colombian performance and realized gains on the sale of a 25% interest in non-core U.S. hydro assets, which more than offset weaker hydrology in the U.S. | $543 million | – | 2025: $457 million |
| WindFFO was $50 million compared with $84 million. | $141 million | – | 2025: $146 million |
| Utility-scale solarFFO was $116 million compared with $100 million; results were supported by the build out of projects commissioned over the last year and realized gains. | $137 million | – | 2025: $126 million |
| Distributed energy & storageFFO was $40 million compared with $44 million; the segment contributed through development activities. | $44 million | – | 2025: $67 million |
| Sustainable solutionsFFO was $44 million compared with $74 million; performance included strong results from Westinghouse and increasing activity across new-build projects and reactor restarts. | $153 million | – | 2025: $178 million |
| CorporateFFO was $(165) million compared with $(136) million. | not reported | – | – |
By 2027 and future transaction milestones outlook
- NoteRemain on track to deliver ~10,000 megawatts of new projects per year by 2027.
- NoteThe remaining 25% interest in the non-core U.S. hydro portfolio in Maine is expected to close in the third quarter of 2026.
- NoteThe special meeting for securityholders to vote on the corporate simplification will be held on October 14, 2026.
- NoteSubject to approvals and closing conditions, the corporate simplification transaction is expected to be completed in the fourth quarter of 2026.
- Note~$2.2 billion (~$630 million net to Brookfield Renewable) of expected proceeds from signed or closed asset-recycling transactions during the quarter.
- NoteTotal proceeds from the sale of 100% of the Maine hydro sales is expected to be ~$2.2 billion (~$800 million net to Brookfield Renewable).
- NoteThe sale of European operating solar and wind assets is expected to generate approximately $500 million (~$80 million net to Brookfield Renewable) of proceeds.
- NoteThe Colombia solar and hydro transactions are expected to generate ~$590 million in proceeds (~$220 million net to Brookfield Renewable).
Capital returns
- The next quarterly distribution is $0.392 per LP unit, payable on September 29, 2026 to unitholders of record as at the close of business on August 31, 2026.
- BEPC declared an equivalent quarterly dividend of $0.392 per share, payable on September 29, 2026 to shareholders of record as at the close of business on August 31, 2026.
- Brookfield Renewable issued approximately 3.2 million BEPC shares and repurchased the same number of BEP units on a one-for-one basis, generating approximately $8 million of incremental cash.
What drove it
- Record FFO of $421 million or $0.62 per unit was attributed to strong operating performance, asset recycling activity and growth from asset development.
- The company delivered ~1,280 megawatts of new capacity in the quarter, bringing completed new capacity so far this year to ~3,100 megawatts.
- Brookfield Renewable executed power purchase agreements for ~2,600 megawatts of development projects from its advanced pipeline.
- Brookfield Renewable committed or deployed ~$5 billion of capital, including ~$760 million net to Brookfield Renewable.
- The agreed Aypa acquisition is for ~$3 billion, or ~$420 million net to Brookfield Renewable, and includes ~3,000 megawatts of highly contracted operating and under-construction battery storage assets, an additional ~3,500 megawatts of contracted projects and a further +20-gigawatt development pipeline.
- The U.S. Department of Energy committed $17.5 billion in loan facilities to finance long-lead equipment for up to 10 large scale Westinghouse AP1000 reactors in the United States.
- Signed or closed asset-recycling transactions during the quarter represented approximately ~$2.2 billion of expected proceeds, or ~$630 million net to Brookfield Renewable.
Concerns
- Net loss attributable to Unitholders was $(213) million, compared with $(112) million in the prior-year quarter.
- Wind FFO was $50 million, compared with $84 million, and sustainable solutions FFO was $44 million, compared with $74 million.
- Actual renewable generation was 9,378 GWh versus Renewable LTA Generation of 10,151 GWh.
- The hydroelectric segment faced weaker hydrology in the U.S., although this was more than offset by Canadian generation, Colombian performance and realized gains.
- Interest expense was $(658) million, compared with $(624) million.
What to watch
- Closing of the remaining 25% interest in the Maine hydro portfolio expected in the third quarter of 2026.
- Execution and closing of the Aypa acquisition.
- Progress toward delivering ~10,000 megawatts of new projects per year by 2027.
- Progress of Ontario hydro re-contracting initiatives.
- The October 14, 2026 securityholder vote and anticipated fourth-quarter 2026 completion of the BEP and BEPC corporate simplification.
- Investor Day on September 29, 2026 in Toronto.
Balance sheet and cash flow
- Cash and cash equivalents were $1,971 million as of June 30, 2026, compared with $2,093 million as of December 31, 2025.
- Corporate borrowings were $4,882 million as of June 30, 2026, compared with $3,686 million as of December 31, 2025.
- Borrowings which have recourse only to assets they finance were $32,050 million as of June 30, 2026, compared with $31,206 million as of December 31, 2025.
- Total Assets were $96,745 million as of June 30, 2026, compared with $98,701 million as of December 31, 2025.
- Available liquidity was over $5.1 billion across the platform.
- Brookfield Renewable completed approximately $12 billion of financings during the quarter.
- The Safe Harbor hydro portfolio refinancing secured $1.2 billion of long-term financing.
- Neoen completed a €650 million bond issuance.
- At the corporate level, Brookfield Renewable completed a C$200 million preferred unit issuance with a 5.75% coupon.
- Cash provided by operating activities was $526 million, compared with $379 million.
- Financing activities were $(107) million, compared with $2,558 million.
- Investing activities were $(543) million, compared with $(3,066) million.
- Cash and cash equivalents decreased by $(124) million, compared with a decrease of $(129) million.
Analysis
Brookfield Renewable reported record non-IFRS FFO of $421 million, or $0.62 per unit, compared with $371 million and $0.56 per unit in the prior-year quarter. The company described FFO as up 13%, or 11% per unit, supported by operating performance, asset recycling and asset development. This contrasted with an IFRS net loss attributable to Unitholders of $(213) million, compared with $(112) million, while consolidated net (loss) income was $(287) million compared with $100 million.
Hydroelectric was the principal contributor, with $336 million of FFO versus $205 million, as Canadian generation, Colombian operations and gains from the sale of a 25% interest in non-core U.S. hydro assets outweighed weaker U.S. hydrology. Utility-scale solar FFO rose to $116 million from $100 million, while wind FFO fell to $50 million from $84 million. Distributed energy and storage generated $40 million of FFO versus $44 million, sustainable solutions generated $44 million versus $74 million, and corporate FFO was $(165) million versus $(136) million. Total actual renewable generation was 9,378 GWh against Renewable LTA Generation of 10,151 GWh.
Capital deployment and recycling were prominent. Brookfield Renewable committed or deployed ~$5 billion, or ~$760 million net to Brookfield Renewable, including the agreement to acquire Aypa for ~$3 billion, or ~$420 million net. It delivered ~1,280 megawatts of capacity in the quarter and ~3,100 megawatts so far this year, while executing power purchase agreements for ~2,600 megawatts. Asset-recycling transactions signed or closed during the quarter were expected to produce approximately ~$2.2 billion, or ~$630 million net to Brookfield Renewable.
The balance sheet was supported by over $5.1 billion of available liquidity and approximately $12 billion of financings during the quarter. Cash and cash equivalents ended at $1,971 million, compared with $2,093 million at December 31, 2025. Corporate borrowings increased to $4,882 million from $3,686 million, and non-recourse borrowings increased to $32,050 million from $31,206 million. Cash provided by operating activities was $526 million, while investment in property, plant and equipment was $(1,326) million.
There was no formal financial outlook for revenue, margins, expenses or tax rate. The operating target is to deliver ~10,000 megawatts of new projects per year by 2027. Near-term execution points include the expected third-quarter closing of the remaining Maine hydro sale interest, Aypa acquisition execution, Ontario hydro re-contracting, and the October 14, 2026 vote on the corporate simplification, which is expected to complete in the fourth quarter of 2026 subject to approvals and closing conditions.
Management, verbatim
We delivered record financial results, robust capital deployment, and the highest levels of development and asset recycling in our history.
Connor Teskey, CEO of Brookfield Renewable
Energy demand continues to grow at unprecedented levels with customers increasingly seeking scale, integrated power solutions. Our diversified global business and leading capabilities across hydro, solar, wind, storage and nuclear enables us to accelerate our growth in this environment.
Connor Teskey, CEO of Brookfield Renewable
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Operating income or loss was not reported as a line item.
- Free cash flow was not reported.
- A total operating-expense line was not reported.
- An income-tax rate was not reported.
- Prior-quarter comparisons were not reported for the reported quarterly metrics.
- Formal financial guidance for revenue, gross margin, operating expenses and tax rate was not reported.
- Previous-release outlook was not provided, so prior-guidance comparisons are unavailable.
- Segment revenue was not reported for the Corporate segment.
- BEP unit repurchase spending was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.