Auren Energia (AURE3) Q3 2025 earnings summary

Executive summary

• Adjusted EBITDA for 3Q25 was R$772.7 million, down 10.4% year-over-year, mainly due to curtailment and GSF impacts, but up 22.3% for the first nine months of 2025 compared to 2024, reaching R$3.0 billion.

• Integration of AES Brasil completed ahead of schedule, with R$58.1 million in quarterly synergy gains and R$212.1 million cumulative since acquisition, driving operational improvements and expanded asset base.

• Net loss of R$403.7 million in 3Q25, compared to a profit in 3Q24, driven by higher financial expenses and increased depreciation.

• Regulatory developments, including MP 1,304 and ANEEL compensation approval, are expected to impact future results.

• Leverage stood at 4.9x Net Debt/LTM Adjusted EBITDA at quarter-end.

Financial highlights

• Net revenue rose 72.9% year-over-year to R$3,537.4 million, mainly due to the business combination and new asset startups.

• Adjusted EBITDA margin declined to 21.8% from 27.5% in 3Q24.

• Net loss of R$403.7 million in 3Q25, compared to net income in 3Q24, due to higher depreciation, amortization, and financial expenses.

• PMSO synergies of R$58 million captured in 3Q25, totaling R$212 million since the AES Brasil acquisition.

• Net debt surged to R$19,023.4 million, with leverage at 4.9x.

Outlook and guidance

• Management expects long-term energy prices to rise as oversupply recedes, supported by recent increases in forward price curves and PPAs.

• Focus remains on maximizing synergy capture and process optimization following integration.

• Corporate reorganization targeted for completion in 2027 to unlock further synergies.

• Regulatory changes (MP 1,304) may enable reimbursement for curtailment and set principles for hydro concession renewals.