Brookfield Renewable Partners L.P. (BEP) has renewed its normal‑course issuer bid, authorizing the repurchase of up to 15,296,104 LP units—exactly 5% of the partnership’s issued and outstanding LP units—and up to 7,244,255 exchangeable shares, also 5% of the issued and outstanding shares. The renewal follows the prior program, which authorized 14,255,578 LP units, and expands the scope to include preferred units and preferred shares, with daily limits set at 25% of the average daily trading volume for each class.
The new program will begin on December 18, 2025, and will run through December 17, 2026, unless repurchases are completed earlier. BEP will use available cash to buy units and shares that trade below their intrinsic value—a valuation metric derived from discounted‑cash‑flow models and market‑comparable multiples—thereby providing a flexible use of capital that can support the share price.
BEP’s Q3 2025 earnings provide context for the buyback renewal. Revenue was $1.60 billion, a slight $10 million miss versus the $1.61 billion consensus estimate, while the company posted a loss of $0.23 per unit versus an expected loss of $0.45. The earnings beat was driven by disciplined cost management and a favorable mix shift toward the hydroelectric segment, which delivered a 20% increase in funds from operations (FFO) to $119 million. FFO for the quarter rose 10% year‑over‑year to $302 million, or $0.46 per unit, underscoring the partnership’s robust operating performance.
CEO Connor Teskey highlighted the strong quarter and the company’s continued focus on strategic initiatives. Management reiterated its guidance for 10%+ FFO per unit growth in 2025 and a 5‑9% annual distribution growth target. Asset recycling has generated approximately $2.8 billion in proceeds—about $900 million net to BEP—since the start of Q3, reinforcing the capital‑recycling strategy that underpins the buyback renewal.
Preferred unit and share repurchases are also covered by the bid. BEP is authorized to repurchase roughly 10% of the public float for each preferred series, with daily limits of 25% of the average daily volume. As of December 4, 2025, the partnership had 305,922,080 LP units and 144,885,110 exchangeable shares outstanding. The six‑month average daily trading volume was 278,560 LP units and 260,295 exchangeable shares, setting the daily repurchase ceiling for each class.
Market reaction to the Q3 earnings was mixed: despite the EPS beat, the partnership’s stock fell 3.1% in pre‑market trading, reflecting concerns over the revenue miss and valuation levels. The buyback renewal, however, signals management’s confidence in long‑term cash‑flow prospects and provides a mechanism to return value to shareholders.
Strategically, the expanded buyback is part of BEP’s broader capital‑recycling agenda, which includes the sale of de‑risked operating assets and the expansion of its nuclear portfolio through Westinghouse. By returning capital to investors while maintaining a strong balance sheet, BEP aims to sustain growth in renewable generation capacity and invest in AI‑driven infrastructure, positioning the partnership for continued long‑term value creation.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.