Brookfield Renewable Reports Record Q1 FFO Despite Net Loss

Brookfield Renewable Partners L.P. (BEP) reported Funds From Operations (FFO) of $315 million, or $0.48 per unit, for the quarter ended March 31, 2025. The company said FFO rose 15 percent year-on-year when adjusted for strong hydro generation in the prior year. Overall, FFO per unit increased 7 percent, supported by inflation-linked cash flows, portfolio growth, and capital recycling.

After accounting for non-cash depreciation and acquisition-related expenses, BEP posted a net loss attributable to unitholders of $197 million for the quarter. The company cited the acquisition of French renewable developer Neoen as a one-time cost contributor but reaffirmed its focus on contracted cash flows, disciplined capital deployment, and strategic acquisitions.

Segment breakdown: solar, storage, wind report losses

By segment, Brookfield reported a net loss of $61 million in utility-scale solar, $28 million in distributed energy and storage, and $9 million in wind—contributing to a total segment loss of $70 million. Adjusted EBITDA stood at $575 million, while total revenue for the quarter reached $857 million.

BEP said it achieved record FFO in Q1, with its wind and solar segments contributing $149 million. The increase was driven by newly commissioned assets and contributions from recent acquisitions, including Neoen and Ørsted’s 3.5 GW UK offshore wind portfolio. Both assets are performing in line with expectations.

Distributed energy, storage, and sustainable solutions delivered $126 million in FFO—doubling from a year earlier—supported by asset optimization, project pipeline growth, and gains from the sale of Brookfield’s stake in First Hydro. Westinghouse, the company’s nuclear arm, also posted strong results amid rising demand for nuclear energy.

Cost protection measures and supply chain resilience

Brookfield said most of its development projects are shielded from cost volatility through fixed-price EPC contracts. In projects with exposure, power purchase agreements (PPAs) include price adjustment clauses to preserve margins.

The company said its global scale and procurement agreements with equipment manufacturers have helped limit exposure to tariffs and supply chain risks. It noted that only a small share of its materials are sourced directly from China.

Brookfield added that longstanding U.S. solar tariffs have already spurred alternative supply chains, which it believes will help it absorb future policy changes. Outside the U.S., it expects improved material availability and lower costs as U.S. demand shifts inward.

“As with past shocks like rising interest rates, we anticipate passing higher input costs through PPAs, with limited impact on demand or returns,” the company said in a statement.

Outlook: resilient strategy amid uncertainty

“We had a strong start to the year, delivering record results from our global operating fleet, which is now nearing 45,000 megawatts across the lowest-cost renewable technologies,” said Connor Teskey, CEO of Brookfield Renewable.

Teskey added that while market sentiment has weakened due to tariff uncertainty, underlying energy demand remains strong. “Our platform remains resilient, with a strong balance sheet and strategic positioning. This allows us not only to continue executing but also to grow opportunistically in this environment,” he said.

Brookfield highlighted recent milestones including the agreement to acquire National Grid Renewables and the completed privatization of Neoen as part of its ongoing growth strategy.