AXIA Energia (AXIA6) Q1 2026 earnings summary

Executive summary

• Achieved significant operational and financial milestones in 1Q26, including portfolio optimization, governance enhancements, and strong investment activity, with consistent improvement since 2022 post-privatization.

• Major events included the sale of the EMAE stake, unwinding of cross-shareholdings, and the start of the process to delist ADRs from NYSE to focus on the Brazilian market.

• Initiated a succession process in governance, with board-led leadership transition and new vice presidency structure.

• Investments rose 36% YoY to R$1,355 million, with significant increases in transmission expansion.

• Compulsory loan provision inventory reduced by R$2.2 billion YoY, with a net reversal of R$36 million in the quarter.

Financial highlights

• Adjusted regulatory EBITDA reached R$8.6 billion, up 60% YoY, with margin at 67.2%.

• Adjusted IFRS net income was R$3.707 billion, reversing a net loss of R$80 million in 1Q25.

• Adjusted net operating revenue grew 22.1% YoY to R$12,712 million.

• Transmission investments totaled R$977 million, up 49.1% YoY; global investments up 30% YoY.

• Generation contribution margin soared 136.4% YoY to R$5,982 million; transmission margin fell 13.3% YoY to R$3,426 million due to a R$725 million provision.

Outlook and guidance

• Secured 190 MW in the 2026 Reserve Capacity Auction, with supply starting August 2031 under a 15-year contract.

• 286 large-scale transmission projects underway, expected to add R$2.0 billion RAP between 2025-2030 and require R$15.1 billion in CAPEX.

• Market expects spot prices (PLD) of BRL 233 in Q2 and BRL 299 in the second half of the year, reflecting reservoir levels and rainfall patterns.

• Ongoing capital allocation methodology reviewed quarterly, with R$4 billion allocated this quarter.

• Migration to Novo Mercado and conversion of preferred shares to common shares approved in April 2026.