EDF's Performance Declines as Nuclear Plants Affected by High Temperatures

EDF faced pressure in its first-half results, with net profit down 4.4% year-on-year to €5.2 billion. Despite an increase of approximately 8 TWh in French nuclear output, revenue still fell 3.3% to €57.45 billion. The company's half-year EBIT stood at €14.1 billion, with total electricity generation of 262.1 TWh, of which French nuclear plants contributed 189.9 TWh. Meanwhile, EDF also bore an additional €500 million in taxes, mainly related to the contribution on excess profits.

Weak market prices reduced the value of electricity sold by EDF, while the company, fully state-owned, needs to fund capital-intensive industrial projects. As of end-June, EDF's net debt reached €51.5 billion, flat compared to the level at end-2025. For the full year 2026, EDF expects EBIT to decline by "approximately 10%". At the start of the year, the company had only forecast a slight decline, but revised this expectation after incorporating the impact of sustained high temperatures on nuclear and hydroelectric production since late May.

EDF's Chief Executive Officer Bernard Fontana stated that the Golfech reactor in Tarn-et-Garonne and the Chooz reactor in the Ardennes were shut down due to high temperatures. According to data provided by the company, other reactors may be taken offline by the end of this weekend. Nuclear plants must comply with water temperature limits set for each site by the Nuclear Safety and Radiation Protection Authority. These thresholds are designed to control thermal discharges to minimize impacts on aquatic environments and may lead EDF to reduce power output or temporarily suspend unit operations.

Hydroelectric production has also been affected by reduced water availability. Despite this, EDF maintains its French nuclear output estimate of 350 to 370 TWh for 2026 and 2027, while nuclear output in 2025 stood at 373.0 TWh. EDF remains the main industrial operator of France's nuclear renaissance, planning to build six new EPR2 reactors at Penly, Gravelines, and Le Bugey. The group estimates a total cost of €72.8 billion (in 2020 value), with a target of commissioning the first Penly reactor in 2038.

To preserve its financial headroom, EDF will sell its renewable energy business in North America. After reaching an agreement with KKR on June 30 regarding the EDF Power Solutions assets in the United States and Canada, Bernard Fontana stated that the transaction "could take place in the second half of 2026". KKR values the acquisition at $4.2 billion and describes it as a portfolio of approximately 5.6 GW of renewable energy assets.