Brookfield Renewable Partners L.P. Limited Partnership Units

Good day and thank you for standing by. Welcome to the Brookfield Renewable Partners fourth quarter and full year 2025 results. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your speaker today, Connor Teske, Chief Executive Officer. Please go ahead.

Thank you, Operator. Good morning, everyone, and thank you for joining us for our fourth quarter 2025 conference call. Before we begin, we would like to remind you that a copy of our news release and investor supplement can be found on our website. We also want to remind you that we may make forward-looking statements on this call. These statements are subject to known and unknown risks, and our future results may differ materially. For more information, you are encouraged to review our regulatory filings available on CDAR+, EDGAR, and on our website. On today's call, we will provide a review of our 2025 performance, share our perspectives on the energy market today, and provide an update on the growth outlook for our business. We will then turn the call over to Patrick, who will discuss our operating results and strong financial position, as well as outline how our increasingly differentiated access to capital is providing a clear advantage for our franchise today. He will then conclude our remarks with an update on our growing asset recycling program. Following our comments, we look forward to taking your questions. 2025 was another excellent year for our business. We delivered strong financial results, strengthened our balance sheet, and most importantly, further positioned the business to continue delivering strong growth and value creation for our unit holders going forward. This past year, we delivered $2.01 of SFO per unit, up 10% year over year and in line with our long-term growth target. On the back of solid operating performance, expanded development activities, accretive acquisitions, and growing capital recycling. We deployed or committed a record $8.9 billion or $1.9 billion in growth net to BEP, highlighted by the privatization of NAON, our carve out of Geronimo Power in the United States, and our increased investment in Isahen, one of our strongest performing businesses over the last decade. We were successful in advancing our various commercial priorities, signing contracts on over 9 gigawatts of generation capacity. We also continued to scale our development activities, bringing online over 8 gigawatts of new capacity globally, a record for our business. We delivered on our asset recycling targets, reaching agreements to sell assets generating $4.5 billion of proceeds or $1.3 billion net to BEPS, at returns above the high end of our targets. And we accomplished this all, but while strengthening our balance sheet, ending the year with $4.6 billion in available liquidity. Stepping back and looking at the broader market today, it is now clear that power is a strategic priority around the world and is the bottleneck to growth for both governments and corporates. Investment in new generation capacity over the past several years was largely about replacing carbon intensive generation in a world of modest or even flat electricity demand growth. Today, that backdrop has fundamentally shifted. Energy demand is rising at a pace not seen in decades, driven by the multi-decade trends of electrification and renewed industrial activity. This demand growth is being further amplified by AI and the unprecedented investment and energy consumption from some of the largest companies in the world. As a result, we are not only transitioning the grid, but adding substantial net new generation for the first time in decades. Said another way, we have shifted from a period focused on energy transition to a period focused on energy addition. This shift It's driving a move from incremental grid upgrades to large-scale expansion, prioritizing fast-to-deploy renewables, scale baseload generation, and capacity to ensure reliability. Meeting this demand will require a mix of all the scale and efficient technologies over time. Solar and onshore wind will play a critical role given their speed to market and low cost. Hydro and nuclear are important for their base load and scale, natural gas for its flexibility, and battery solutions will be critical for ensuring the reliability of grids going forward. In this evolving environment, we have deliberately positioned our business at the epicenter of many of these technologies, allowing us to capitalize on the rapidly expanding opportunity set given our operating and development capabilities, strong partnerships, and significant access to capital. First, we are scaling our development of low cost, fast to market solar and onshore wind to meet the accelerating demand for power in the near term. Over the past year, we commissioned a record amount of new solar and onshore wind capacity and are on track to reach a run rate of delivering roughly 10 gigawatts of new capacity per year by 2027, all while maintaining our disciplined approach to development. Second, against the backdrop of growing demand for reliable baseload power, we are well positioned in the current market through our operating hydro assets and our ownership of Westinghouse. As power systems require more scale baseload generation, flexibility, and enhanced reliability, the value of hydro is being recognized more than ever before. This has been highlighted by the execution of three 20-year power purchase agreements at strong pricing with hyperscalers, a first for our business, as well as the signing of the framework agreement with Google to deliver up to 3 gigawatts of hydro generation in the United States. With respect to nuclear, only slightly more than two years ago we invested in Westinghouse, gaining exposure to this critical technology for current and future electricity grids, given its scale and baseload characteristics. Our investment was underpinned by Westinghouse's highly contracted infrastructure-like cash flows from its fuel and maintenance business, its strong market share, and its leading and proven technology for large-scale nuclear power reactors. The current energy demand environment has reinvigorated the nuclear sector, with increasing recognition of the role nuclear can play to enable economic growth and provide energy security. Perhaps the most impactful development for the sector is the recently announced landmark agreement with the U.S. government to deliver new nuclear reactors utilizing Westinghouse technology in the United States. This agreement delivers significant economic value to Westinghouse and BEP via the development of multiple reactors and then through the long-term provision of fuel and maintenance services over the 80-plus year life of those reactors. A commitment of this scale provides long-term demand certainty, helping unlock supply chain investment and positions Westinghouse to expand deployment well beyond this initial program to both corporates and governments in the US and internationally. Since signing this agreement, all parties have been working to progress the sites to construction as quickly as possible, largely focusing on site selection, and the ordering of long lead time items. Against this backdrop and the known development timeline for nuclear, the limited new hydro capacity available, and the growing backlog for natural gas plants, we are seeing batteries play an increasingly important role in the near term, with their importance set to grow over time as additional low-cost renewables come online. Battery costs have declined by an astonishing 95% since 2010, following a trajectory similar to solar panels a decade ago. And we see a growing opportunity to deploy this technology on a contracted basis at strong risk-adjusted returns. Our recent acquisition of NEOEN significantly expanded our operating footprint, capabilities, and development pipeline in battery technology, and we expect to quadruple our battery storage capacity over the next three years to over 10 gigawatts. This growth is highlighted by one of the largest standalone battery storage projects globally, totaling over one gigawatt, which we are currently advancing through NAON in partnership with a sovereign wealth fund. Taken together, rising energy demand across global markets is driving the need for rapid additions of renewable capacity large-scale baseload power, and battery storage. Backed by long-term partnerships with the world's largest corporate buyers of power and governments, we are delivering more generation than ever before. By being positioned in markets with accelerating demand, combined with our global scale, significant access to capital, and our operating and development capabilities across key technologies, We are best positioned to deliver comprehensive energy solutions across all markets at scale and are entering into a period of outsized earnings growth, generating significant value for our unit holders over the long term. And with that, I'll pass it on to Patrick to discuss our operating results, our diverse sources of scale capital, our balance sheet, as well as our recent capital recycling initiatives.

Thanks, Conor. And good morning to everyone on the call. As Connor noted at the outset of his remarks, 2025 was a strong year across almost every metric, with the business delivering 10% FFO per unit growth, achieving our target while maintaining our best in class balance sheet, and further positioning ourselves to generate significant growth and value going forward. In the fourth quarter, we delivered FFO of $346 million, up 14% year over year, or 51 cents per unit. On a full year basis, we delivered FFO of $1,334,000,000, or $2.01 per unit, up 10% year on year. Results were driven by the strength of our contracted inflation-linked cash flows across our diversified global operating fleet, growth from development activities, accretive acquisitions, and scaling capital recycling. Looking across our segments, Our hydroelectric segment delivered strong results this year, with FFO of $607 million, up 19% from the prior year, benefiting from solid generation across our Canadian and Colombian fleets, higher revenues from commercial initiatives, and gains from the sale of a non-core hydro portfolio, all of which offset weaker hydrology in the US. Our wind and solar segments generated a combined $648 million of FFO, supported by contributions from the acquisitions of Naoen and Geronimo Power, as well as our investment in a portfolio of contracted offshore wind assets in the UK. This growth was offset by gains on sales recorded in last year's results, which included the sale of Syeda and the partial disposition of Shepherd's Flat. In our distributed energy, storage, and sustainable solutions segments, we generated record results of $614 million, up almost 90% from the prior year. driven by growth through development, the acquisition of Naolin, and strong performance at Westinghouse on the back of continued momentum in the nuclear sector. In addition to the strong results, a continued focus of ours has and will always be to maintain balance sheet strength and financial flexibility. This enables us to be opportunistic when it comes to deploying capital into growth and protecting us against downside risks. We ended 2025 with $4.6 billion of liquidity. And over the past year, we reaffirmed our BBB Plus investment grade credit rating, which we remain firmly committed to maintaining going forward. Our rating, significant liquidity, and strong financial position enable us to be very opportunistic with respect to our financing activities, which further strengthens our balance sheet. In 2025, we executed over $37 billion in financings. a record for our franchise. These financings were highlighted by the completion of $2.2 billion in investment grade up financings, primarily at our hydro assets, where we are seeing strong lender demand for these assets and are leveraging the benefits of newly signed long-term contracts at strong pricing. In March of this past year, we issued $450 million Canadian of 10-year notes at what was our lowest spread in almost 20 years at the time. We then more recently topped this, issuing $500 million Canadian of 30-year notes this January at our lowest spread ever, reflecting the strong demand for our credit and our ability to be nimble and take advantage of a favorable spread environment. In November this past year, we also executed a $650 million bought deal equity raise in concurrent private placement. We were successful deploying capital ahead of our targets in the 12 months prior to the equity raise, and this financing provides capital to invest even further in the expanding opportunity set in areas where we have a differentiated ability to deploy capital, such as hydro, nuclear, and battery storage. Our strong balance sheet is further enhanced by the fact that we deploy our capital alongside a large pool of third-party funds raised by Brookfield Asset Management. In 2025, Brookfield successfully completed fundraising of over $20 billion for its second vintage of its global transition fund. This capital will support large scale investments alongside BEP that few others can make, further enhancing our access to large, high quality M&A opportunities that help us achieve strong and consistent growth. In addition to our financing activities across the business, we are continuing to scale our capital recycling program, which is increasingly providing significant liquidity to support our growth and crystallize value creation within our business. We continue to see robust demand from private investors for de-risk infrastructure like cash flowing operating assets. At the same time, with our scaling development activities, we have a growing portfolio of assets and platforms that we are selling on an annual basis. The size of our portfolio and our flexibility to sell whole platforms, standalone assets, or minority stakes is enabling us to be active in the market, consistently selling at prices that deliver on our target returns. This past year, we generated record proceeds of $4.5 billion or $1.3 billion net to bet from asset recycling alone. This year, our asset rotation activities were highlighted by the sale of a major North American distributed energy platform, a 50% interest in a portfolio of non-core hydro assets in the U.S., and the establishment of an asset rotation program at NEOEN that was successful in executing the sale of $1 billion of enterprise value of assets and our first year of ownership alone. Looking ahead, we are focusing on continuing to scale our capital recycling program and generating proceeds from sales in a more recurring manner. In January this year, we agreed to sell a two-third stake in a large portfolio of recently built operating and solar assets, wind and solar assets in North America, generating proceeds of $860 million or $210 million net to BEP. and are actively progressing the sale of the remaining interest. In conjunction with this sale, we are also establishing a framework for the future sale of select assets that meet certain criteria to the same buyers. This framework, which proposes the sale of up to $1.5 billion of additional assets, further de-risks our development platforms and provides a scalable source of capital to fund future growth. We're exploring similar initiatives in other regions across our global platforms and look forward to providing updates on our progress throughout the year. We also wanted to note that after the quarter end, we announced a fully discretionary $400 million at-the-market equity issuance program for our BEPSI shares. We expect to use the proceeds to repurchase BEF LP units on a one-for-one basis under our existing NCIB. The purpose of the program is to increase BEPSI's flow and liquidity in a non-dilutive manner. while also allowing us to capture value from the persistent premium at which those shares trade, providing incremental cash to deploy into growth or buy back even more shares. Lastly, with our record results and in conjunction with our strong liquidity and robust outlook for our business, we are pleased to announce an over 5% increase to our annual distribution to $1.46.8 per unit. Since Brookfield Renewable was listed in 2011, we have now delivered 15 consecutive years of annual distribution growth of at least 5% each year. In closing, we remain focused on delivering 12 to 15% long-term total returns for our investors while remaining disciplined allocators of capital, leveraging our scale and operational capabilities to enhance and de-risk our business. On behalf of the board and management, we thank all of our unit holders and shareholders for their ongoing support. That concludes our formal remarks for today's call. Thank you for joining us this morning. And with that, I'll pass it back to our operator for questions.