Alupar Investimento (ALUP11) Q2 2025 earnings summary

Executive summary

• Net revenues (IFRS) reached R$1,047.1 million in 2Q25, up 9.8% year-over-year, driven by transmission and generation segments.

• Regulatory net income rose 43.9% year-over-year to R$186.1 million, while IFRS net profit declined 38.9% to R$144.9 million, mainly due to lower EBITDA and financial results.

• Major investments included the completion of the ELTE transmission line, acquisition of Rialma IV, and expansion of the project pipeline in Brazil and Latin America.

• Dividend distributions for 2Q25 totaled R$69.2 million, representing 39.2% of regulatory net income, and R$145.3 million was paid in the first half of 2025.

• Focus remains on shareholder returns, project expansion, and operational efficiency.

Financial highlights

• IFRS net revenues were R$1,047.1 million, up 9.8% year-over-year; regulatory net revenues were R$858.0 million, up 8.4%.

• IFRS EBITDA was R$600.5 million, down 23.6% year-over-year; regulatory EBITDA rose 5.5% to R$680.5 million.

• IFRS net profit was R$144.9 million, down 38.9%; regulatory net profit was R$186.1 million, up 43.9%.

• Net debt stood at R$9,036.1 million, with net debt/EBITDA at 3.0x (IFRS) and 3.4x (regulatory).

• Dividend payout ratio was 39.2% of regulatory net income for 2Q25 and above 50% for 1H25.

Outlook and guidance

• RAP for the 2025/26 cycle increased 11.4% to R$4,782 million, supported by indexation and new assets.

• Ongoing expansion in transmission and generation, with projects under construction in Brazil and Latin America.

• Management is focused on value creation through asset expansion and operational efficiency.

• Generation segment expects continued growth with new assets and improved operational availability.

• Generation may face volatility due to regional energy market imbalances.