Publication date: 30-11-2025
Electricité de France (EDF) is France’s main electricity producer and one of the largest energy companies in the world. Its business model is built around low-carbon generation, with nuclear power at the core. Roughly three-quarters of EDF’s electricity comes from its French nuclear fleet, making the company central to the country’s energy security. EDF also operates hydropower plants, onshore and offshore wind projects, energy-distribution networks, and various service businesses. This combination gives EDF a broad footprint, but nuclear generation remains the most important source of earnings and cash flow.
EDF’s activities can be grouped into several areas that contribute differently to its financial results. The French nuclear and hydro generation plus supply activities together account for around 57 % of EBITDA, making them the dominant economic driver. The regulated distribution networks, operated mainly by Enedis, provide about 15 % of EBITDA and offer stable, predictable earnings because tariffs are set by the regulator. International nuclear and thermal generation – primarily in the UK and Italy – add roughly 10 %, while Italian and other European operations contribute another 5–9 %. Renewable energy (wind, solar, and other technologies) represents around 4 %, a small but growing share.
This breakdown means EDF’s performance depends heavily on nuclear availability, network tariff decisions, and long-term investment in generation capacity.
Image: geography of EDF's assets. Source: Company presentation
EDF’s generation mix is unusual compared with most European utilities. Nuclear power makes up around 75 % of production, hydropower around 11–18 %, and other renewables around 14 %. This helps keep the company’s carbon footprint low, but also means that maintaining the aging reactor fleet is a constant task. Most reactors were built several decades ago, and several units will reach the end of their extended lifetimes in the 2030s. EDF plans gradual upgrades to extend operating lifetimes where possible, while also preparing to replace part of the fleet.
Looking ahead, EDF is entering a period of very high investment. France has asked the company to start building six new-generation nuclear reactors, which are planned to replace part of the aging fleet and support the country’s long-term electricity needs. These new reactors are based on a more modern design intended to improve safety and reliability. The first unit is expected to start operating around 2038. At the same time, EDF is completing a major new plant in the UK (Hinkley Point C) and preparing for future participation in another UK project (Sizewell C). Together, these programmes represent over €100 billion of investment over the next several years. These projects will anchor France’s future electricity system but come with long construction periods and potential delays. To prepare, EDF has started streamlining the group by selling non-core businesses and reducing exposure outside France. It is considering selling parts of its UK solar and battery portfolio, some North American renewables businesses, and possibly certain service subsidiaries. These moves aim to free capital for nuclear development and help keep balance-sheet pressure under control.
Because these projects require very large amounts of capital, EDF raises money from many different sources. It issues ordinary bonds in the market, uses long-term loans, and also works with institutional investors to secure multi-year funding. One recent example was a £4,5 billion agreement with Apollo, which helps finance the final stages of the Hinkley Point C project. EDF also maintains very strong liquidity, with several tens of billions of euros in cash and credit lines, supported by consistent access to European debt markets.
EDF benefits from exceptionally strong backing from the French state, which owns 100 % of the company. All major rating agencies consider EDF a government-linked strategic enterprise, with explicit and implicit support mechanisms. The state is expected to fund a significant portion of new-nuclear costs and, in some cases, may offer direct guarantees for large projects. The European Commission still needs to approve all details of the support framework, but similar programmes in other countries suggest a high probability of approval. This state connection reduces refinancing risk and underpins the credit profile even during periods of political uncertainty.
Despite these strengths, EDF still faces long-term challenges. Nuclear operations require strict safety standards, particularly as reactors age. New projects may face cost overruns, and European power markets may show periods of lower prices, which can reduce earnings from unregulated activities. The company’s capex needs exceed free cash flow for the foreseeable future, meaning debt levels may fluctuate. Regulators may also intervene in pricing or introduce windfall taxes, depending on market conditions. Even with these risks, EDF’s essential role in France’s energy system provides a unique level of resilience.
The 5,875 % notes due July 2031 are euro-denominated senior unsecured bonds issued by EDF. They are not callable before maturity and offer a fixed interest rate until repayment.
as of 30-06-2025 EUR bn
| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | Column 6 |
|---|---|---|---|---|---|
| Assets | 371,1 | EBITDA Margin | 28 % | CFO/Debt | 0,3x |
| Revenue LTM | 117,9 | Net debt incl. pensions | 66 | FCF | 6,7 |
| EBITDA LTM | 33,1 | Net Debt/EBITDA | 2,0x | Equity | 76,8 |
| Net Profit LTM | 10,3 | EBITDA/Interest | 9x | Debt/Equity | 1,4x |
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