Equatorial Energia (EQTL3) investor relations material

Executive summary

• Adjusted consolidated EBITDA rose 18.6% year-over-year to R$3.5 billion, driven by market growth, cost control, and operational improvements, with Distribution segment quality gains and CEEE-D achieving contractual DEC.

• Net operating revenue increased 14.4% to R$14.1 billion, and adjusted net income grew 4.9% to R$830 million, despite a 38% drop in reported net income due to higher financial expenses.

• Consolidated investments reached R$3.0 billion, up 25% year-over-year, focused on distribution network expansion and quality.

• Completed the sale of the transmission segment, raising R$5.4 billion to R$6.4 billion in equity value and reducing capital by R$988 million.

• R$1.8 billion in interest on equity approved, and R$9.4 billion raised, extending average debt maturity to 5.8 years.

Financial highlights

• Adjusted EBITDA margin improved to 24.6% of net operating revenue, up 0.9 p.p. year-over-year.

• Net debt/EBITDA ratio at 3.3x, with net debt at R$46.1 billion and cash/short-term debt coverage at 2.1x.

• Closed the quarter with R$16 billion in cash and invested R$3 billion, up R$600 million year-over-year.

• Payment of R$1.8 billion in interest on equity (R$1.45/share) was approved.

• Gross margin for distributors grew 5.7% to 6% (almost 8% adjusted for distributed generation liability).

Outlook and guidance

• Sanitation remains a key growth avenue, with plans to remain active in upcoming auctions if attractive opportunities arise.

• Management highlights ongoing focus on operational quality, cost control, and regulatory compliance.

• Anticipates a volatile year ahead, maintaining flexibility with share buyback and capital allocation strategies.

• Expects further evolution in energy pricing models and market flexibility, especially with white tariff initiatives.

• Regulatory and market risks, especially in renewables (constrained-off), remain under monitoring.