Alupar Investimento (ALUP11) Q1 2025 earnings summary

Executive summary

• Net revenues (IFRS) reached R$1,223.7 million in 1Q25, up 22.8% year-over-year, driven by strong transmission and generation segments.

• Consolidated net profit (IFRS) was R$298.8 million, a 17.2% increase, with EBITDA up 14.9% to R$932.5 million.

• Dividend distribution of R$69.2 million (52% payout) approved for 1Q25, and a 4% stock bonus (38 million new shares, R$349.5 million) delivered in April 2025.

• Major transmission projects advanced, including 551km of new lines, substation upgrades, and the incorporation of TAP by TECP.

• Investments totaled R$172.5 million in 1Q25, mainly allocated to transmission projects under implementation.

Financial highlights

• IFRS net revenues: R$1,223.7 million (+22.8% YoY); Regulatory net revenues: R$857.5 million (+8.3% YoY).

• IFRS EBITDA: R$932.5 million (+14.9% YoY), margin 76.2%; Adjusted EBITDA margin: 88.0%.

• IFRS net profit: R$298.8 million (+17.2% YoY); Regulatory net profit: R$140.1 million (-9.0% YoY).

• Net debt: R$8,909.4 million, down 2.5% from Dec/24; Net debt/EBITDA improved to 2.8x from 3.5x YoY.

• Dividend payout for 2024 approved at R$275.7 million, with R$76.1 million remaining to be paid by June 2025.

Outlook and guidance

• Ongoing investments in transmission projects in Brazil and Latin America, with several projects in advanced implementation or near completion.

• Management expects continued strong cash generation from regulated assets and highlights value creation through capital structure optimization.

• Regulatory approval for R$72.2 million investment in ETVG substation reinforcement, with a 30-month implementation timeline.