Brookfield Renewable Partners LP Q1 FY2025 earnings call

• Strong first quarter performance with FFO per unit up 15% (adjusting for prior year hydro) and 7% all-in. - Executed on plans for 2025 and beyond, including securing contracts for incremental generation, progressing projects with Microsoft, and commissioning ~800 MW of renewable capacity. - Completed acquisitions like privatization of Naoen and acquisition of National Grid Renewables, with plans to accelerate development and monetize assets. - Divested stakes in First Hydro, part of India portfolio sale, and a stake in Shepherd's Blunt, generating strong returns. - Well-equipped to navigate supply chain challenges due to global diversified portfolio, strong supplier relationships, and domestic procurement strategies. - Balance sheet remains strong with $4.5 billion liquidity, and active in unit repurchases.

Hydro segment: Benefited from favorable all-in pricing, with solid results and well-positioned for Q2 2025 and beyond due to healthy snowpack and reservoir levels. Wind and solar segments: Performed well, benefiting from newly commissioned capacity and investments. Distributed energy, storage, and sustainable solutions segments: FFO more than doubled year over year, driven by solid performance and accretive capital recycling. Westinghouse: Performed well, benefiting from growing demand for nuclear power. Revenue contributions: Hydro, wind, solar, distributed energy, storage, sustainable solutions, and Westinghouse each contribute to the overall results with specific financial performances detailed in the transcript.

• Continue to capitalize on market bifurcation, acquiring for value and monetizing derisked renewables platforms. - Expect to bring approximately 8 GW online in 2025, over double the run rate three years ago. - Confident in delivering 12 to 15% long-term total returns for investors while remaining disciplined in capital allocation.

• Tariffs and resulting market volatility pose potential impacts on renewable sector, though the company is well-positioned to mitigate. - Supply chain uncertainties, though the global diversified portfolio and domestic procurement strategies help. - Market volatility affecting public market valuations for renewable energy companies, but private market demand remains robust.

Q: Nelson Ng asked about permitting delays in the US and equipment security for solar projects.

A: Connor Teskey stated that most US solar advanced-stage projects have secured equipment and are not exposed to recent tariffs, with the vast majority of solar US advanced-stage projects fully secured from an equipment perspective, about 60% being solar.

Q: Sean Steuart inquired about Microsoft's data center activity and its impact on the framework agreement.

A: Connor Teskey noted Microsoft's growth in data center demand remains robust, with any changes seen as optimization rather than a change in trajectory, and no impact on the framework agreement.

Q: Robert Hope asked about recontracting hydro capacity strategy.

A: Connor Teskey explained that recontracting hydros will pull forward up financing opportunities, with increased interest from corporate buyers, and done on a case-by-case basis.

Q: Mark Jarvi asked about managing tariff risk and supply chain impact.

A: Connor Teskey and Hannah Laboucheine discussed that tariff impacts are manageable, with most equipment costs locked in, domestic strategies mitigating risk, and technology improvements offsetting some costs.

Q: Christine Cho inquired about PPA adjusters and project timing.

A: Connor Teskey and Hannah Laboucheine explained that projects are derisked by locking in revenue, financing, and CapEx, with PPAs having adjusters to handle cost increases, and demand for power remaining robust to absorb such changes.

Q: Benjamin Pham asked about Neon acquisition integration and Westinghouse projections.

A: Connor Teskey outlined integration priorities include accelerating development, leveraging scale, and selling derisked assets, while Westinghouse is performing well with growing nuclear demand and orders exceeding initial expectations.