Auren Energia (AURE3) Q2 2025 earnings summary

Executive summary

• Adjusted EBITDA reached BRL 981 million in Q2 2025, up 18% year-over-year, and a record BRL 2.2 billion for the semester, with leverage reduced to 4.8x Net Debt/Adjusted EBITDA.

• Integration of AES Brasil assets neared completion ahead of schedule, with unified SAP and operations centers, and R$154 million in cumulative synergies since 4Q24.

• Significant expansion in scale and installed capacity, driven by the acquisition and start-up of the Jaíba solar complex.

• Pension plan immunization strategy implemented, reducing the CESP Vivest deficit by up to BRL 693 million and annual contributions by up to BRL 36 million.

• Leadership transition: Mario stepped down as CEO, succeeded by João Guillaumon.

Financial highlights

• Net revenue was BRL 2,885.5 million in Q2 2025, up 25% year-over-year; adjusted EBITDA margin was 34.0%.

• Net loss of BRL 562.9 million in Q2 2025, mainly due to higher finance costs and depreciation.

• Net debt stood at BRL 18.7 billion, up 45.5% year-over-year, with leverage at 4.8x.

• Gross debt at BRL 24.5 billion as of June 2025, with new issuances totaling BRL 3.25 billion.

• Free cash flow was negative at BRL 1.2 billion in Q2 2025, reflecting higher debt service and project capex.

Outlook and guidance

• Integration of AES Brasil assets expected to complete by December 2025, with continued focus on synergy capture and asset availability.

• Targeting annual PMSO synergies of BRL 250 million, with similar quarterly reductions expected in 2H25.

• Aiming for 95% average availability of acquired wind assets by year-end 2025.

• Contracting levels for generation portfolio at 94% for 2025, 95% for 2026, and 86% for 2027.

• Commercialization results expected to be less expressive in the second semester, with strong performance concentrated in the first half.