Greencoat Renewables Maintains Dividend Ambition as Strong Cash Flow Counters NAV Pressure

Greencoat Renewables PLC (LSE:GRP) said it will hold its dividend target steady after reporting resilient cash generation, despite a modest decline in net asset value. The group reported an unaudited NAV of €1,102 million, equivalent to 99.0 cents per share, as at 31 December 2025.

A quarterly interim dividend of 1.70250 cents per share was declared for Q4 2025, bringing the total distribution for the year to 6.81 cents per share and completing the company’s stated full-year target. Management also confirmed that this dividend level will be maintained for 2026. Power generation came in below expectations, running 9.1% under budget in the fourth quarter and 10.4% below budget for the full year, but this was offset by robust net cash generation of €27.7 million in Q4 and €114.6 million across 2025. This supported a healthy net dividend cover of around 1.5x.

Net asset value per share declined by 2.5 cents during the quarter, reflecting a combination of lower power prices, revised operational budgets, reduced Guarantees of Origin assumptions and dispatch constraints in Ireland. Despite these headwinds, Greencoat Renewables emphasised its proactive approach to balance sheet management. During the period, the company extended its €350 million revolving credit facility to 2028, entered into interest rate swaps fixing part of its debt at 3.9%, and maintained a weighted average cost of debt of 3.4%.

Liquidity remained strong, with €138 million of cash and €240 million of undrawn facilities at year end. Management said this financial flexibility supports a geared portfolio internal rate of return of 9.4% and underpins the sustainability of the dividend policy for shareholders across its Irish, UK and South African registers.

More about Greencoat Renewables PLC

Greencoat Renewables PLC is a listed renewable infrastructure company focused on owning and operating renewable energy assets, primarily wind generation, across Europe. The group targets long-term, stable cash flows from contracted and regulated power generation, appealing to income-oriented investors seeking exposure to the energy transition and European decarbonisation trends.