Brookfield Renewable Partners (NYSE:BEP) executives highlighted strong full-year 2025 results, record deployment and commissioning activity, and what management described as a material shift in global power markets driven by rising electricity demand and the need to add new generation capacity at scale.
2025 financial results and operating performance
Chief Executive Officer Connor Teskey said 2025 was “another excellent year” for the partnership, citing improved financial results, balance sheet strength, and progress positioning the business for continued growth. The company reported funds from operations (FFO) of $2.01 per unit for 2025, an increase of 10% year-over-year and in line with its long-term target. Teskey attributed the performance to solid operations, expanded development activities, accretive acquisitions, and growing capital recycling.
By segment, Patrick said:
- Hydroelectric FFO was $607 million, up 19%, supported by solid generation in Canada and Colombia, higher revenues from commercial initiatives, and gains from the sale of a non-core hydro portfolio, partially offset by weaker U.S. hydrology.
- Wind and solar combined FFO was $648 million, supported by acquisitions including Neoen and Geronimo Power and an investment in contracted offshore wind assets in the U.K., offset by gains recorded in the prior year tied to the sale of Saeta and a partial disposition of Shepherds Flat.
- Distributed energy storage and sustainable solutions delivered record FFO of $614 million, up almost 90% year-over-year, driven by development growth, the Neoen acquisition, and strong performance at Westinghouse amid increased momentum in the nuclear sector.
Record deployment, contracting, and asset recycling
Management emphasized a year of record activity across investment, commissioning, and contracting. Teskey said Brookfield Renewable deployed or committed $8.9 billion (or $1.9 billion net to BEP) in growth, highlighting the privatization of Neoen, the carve-out of Geronimo Power in the U.S., and an increased investment in Isagen.
On the commercial front, Teskey said the company signed contracts covering over 9 gigawatts of generation capacity. Brookfield Renewable also commissioned over 8 gigawatts of new capacity globally in 2025, which he described as a company record. Looking ahead, he said the partnership is on track to reach a run rate of delivering roughly 10 gigawatts of new capacity per year by 2027, while maintaining a “disciplined approach to development.”
Capital recycling was another major theme. Teskey said Brookfield Renewable reached agreements to sell assets generating $4.5 billion of proceeds (or $1.3 billion net to BEP) at returns above the high end of its targets. Patrick said 2025 recycling included the sale of a major North American distributed energy platform, a 50% interest in a portfolio of non-core U.S. hydro assets, and an asset rotation program at Neoen that sold $1 billion of enterprise value of assets in Brookfield Renewable’s first year of ownership.
Patrick added that in January, after year-end, the company agreed to sell a two-thirds stake in a portfolio of recently built operating wind and solar assets in North America, generating proceeds of $860 million (or $210 million net to BEP), and said it is progressing the sale of the remaining interest. He also described a framework with the same buyers proposing the future sale of up to $1.5 billion of additional assets, designed to provide a scalable source of capital and de-risk development platforms.
Management view: from “energy transition” to “energy addition”
Teskey said global electricity demand is now rising at a pace not seen in decades, driven by electrification, renewed industrial activity, and AI-related investment and consumption. He characterized the current period as moving beyond replacing carbon-intensive generation and into a phase of adding “substantial net new generation for the first time in decades.”
He said this change is driving large-scale grid expansion and increasing focus on fast-to-deploy renewables, scaled baseload generation, and reliability solutions. Teskey outlined a technology mix he expects will be required over time: solar and onshore wind for speed and cost, hydro and nuclear for baseload and scale, natural gas for flexibility, and batteries for reliability.
Hydro, nuclear, and batteries highlighted as key growth areas
Teskey said demand for hydro is being recognized “more than ever,” pointing to three 20-year power purchase agreements at strong pricing with hyperscalers and a framework agreement with Google to deliver up to 3 gigawatts of hydro generation in the U.S. On a question about U.S. hydro realized pricing, management said hydro contract pricing should increase as newer contracts layer in, noting that some do not start immediately and begin when existing contracts roll off.
On nuclear, Teskey discussed Brookfield Renewable’s investment in Westinghouse, emphasizing contracted, infrastructure-like cash flows from fuel and maintenance services, market share, and reactor technology. He said the sector has been reinvigorated and pointed to a “landmark agreement” with the U.S. government to deliver new nuclear reactors using Westinghouse technology, which he said could create value through reactor development and long-term fuel and maintenance services across the 80-plus-year life of those assets.
Battery storage was described as a rapidly expanding opportunity. Teskey said battery costs have declined 95% since 2010 and indicated the company expects to quadruple battery storage capacity over the next three years to over 10 gigawatts, supported by the Neoen acquisition. In the Q&A, he said batteries are the “fastest growing part” of Brookfield Renewable’s platform and cited an acceleration driven by falling costs, including a decline of more than 60% over the last 24 months. Management also said the company is increasingly seeing long-term tolling or take-or-pay style contracts for new battery assets, rather than merchant arbitrage models, and noted that one large Neoen-led battery project in partnership with a sovereign wealth fund would be fully contracted for the life of the assets.
Balance sheet, financing activity, and distribution increase
Patrick said Brookfield Renewable ended 2025 with $4.6 billion of available liquidity and reaffirmed its BBB+ investment-grade credit rating. He said the partnership executed over $37 billion in financings during 2025, including $2.2 billion of investment-grade up-financings primarily at hydro assets. He also highlighted debt issuances, including CAD 450 million of 10-year notes in March and CAD 500 million of 30-year notes in January at what he described as the partnership’s lowest spread ever.
During the year, Brookfield Renewable completed a $650 million bought deal equity raise and concurrent private placement. Patrick said Brookfield Asset Management also raised over $20 billion for the second vintage of its Global Transition Fund, which he said supports large-scale investments alongside BEP.
After quarter-end, Patrick said the company announced a fully discretionary $400 million at-the-market equity issuance program for BEPC shares, with proceeds expected to be used to repurchase BEP LP units on a one-for-one basis under the existing normal course issuer bid. He said the goal is to increase BEPC’s FFO and liquidity in a non-dilutive manner and capture value from the premium at which BEPC shares trade.
Finally, management announced an over 5% increase to the annual distribution to $1.468 per unit. Patrick said the increase marked Brookfield Renewable’s 15th consecutive year of annual distribution growth of at least 5% since listing in 2011, and reiterated a focus on delivering 12% to 15% long-term total returns.
About Brookfield Renewable Partners (NYSE:BEP)
Brookfield Renewable Partners L.P. is a leading global owner, operator and developer of renewable power assets. Listed on the New York Stock Exchange under the ticker BEP, the partnership focuses on generating clean electricity from a diversified mix of hydroelectric, wind, solar and energy storage facilities. As part of the Brookfield Asset Management group, Brookfield Renewable leverages a long-term, asset-backed approach to investing in sustainable energy projects that support the transition to a low-carbon economy.
The company’s platform encompasses approximately 23,000 megawatts of installed capacity across four continents.
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