Auren Energia (AURE3) Q1 2025 earnings summary

Executive summary

• Achieved record Adjusted EBITDA of R$1.2 billion in 1Q25, up 66% year-over-year, marking the first full quarter post-AES Brasil integration, with leverage at 5.0x Net Debt/Adjusted EBITDA.

• Strategic focus on synergy capture and deleveraging, with R$56 million in recurring PMSO savings and improved wind asset availability to 90.7%.

• Energy generation from own assets rose 30.8% year-over-year to 3.8 GW, driven by hydro and wind segments.

• Liability management included a R$2.0 billion debenture issuance and extraordinary amortization of R$3.2 billion (59%) of acquisition finance.

• Net income was R$54 million, reflecting higher EBITDA but also increased financial expenses and depreciation.

Financial highlights

• Net revenue reached R$2.95 billion, up 111.3% year-over-year, with Adjusted EBITDA margin improving to 40.8%.

• Trading segment Adjusted EBITDA grew over 200% to R$165 million, benefiting from price volatility and submarket spreads.

• Net debt stood at R$18.96 billion, with leverage at 5.0x, down from 5.7x in December 2024.

• PMSO expenses reduced by R$56 million, supporting synergy targets.

• Operating cash flow after debt service was R$538.6 million, up 84.3% year-over-year.

Outlook and guidance

• Integration of AES Brasil expected to conclude by end-2025, with continued focus on synergy capture and deleveraging.

• Targeting 95% availability for wind assets by December 2025, with major maintenance and blade replacements scheduled for H2.

• Portfolio remains highly contracted for 2025–2027, supporting revenue visibility.

• Advanced PPA negotiations for Cajuína 3, aiming for full energy sales by project completion in 2026.

• Continued realization of mark-to-market gains on energy contracts expected throughout the year.