AXIA Energia (AXIA6) Q3 2024 earnings summary

Executive summary

• Achieved significant operational efficiency and full cost management freedom for the first time in 60 years, following regulatory agreements and the incorporation of Furnas.

• Net income reached R$7.2 billion in Q3 2024 and R$9.3 billion for 9M24, reflecting strong operational and financial performance, including regulatory remeasurement and asset sales.

• Regulatory net operating revenue rose 8.2% YoY to R$10.6 billion, driven by a R$1.3 billion boost from the Tucuruí hydrological risk renegotiation.

• Adjusted regulatory EBITDA increased 8.7% YoY to R$6.8 billion, with equity income contributing R$610 million.

• Solid cash position of R$28.4 billion, sufficient to cover four years of debt repayments.

Financial highlights

• Gross revenue grew 22.9% YoY to R$12.96 billion; net operating revenue rose 26.9% YoY to R$11.04 billion.

• Net income was R$7.2 billion; adjusted net income was R$7.6 billion, up 588.3% YoY, mainly due to regulatory remeasurement.

• Raised R$22.1 billion in 2024, ending Q3 with R$28.4 billion in cash, covering four to five years of debt maturities.

• Free cash flow reached R$6.1 billion in Q3 2024.

• Basic EPS for Q3 2024 was R$3.16 (ON), R$4.07 (PNA).

Outlook and guidance

• Ongoing investments in asset modernization and expansion, with 245 transmission projects expected to add R$1.8 billion in RAP by 2029.

• CapEx expected to exceed R$3 billion in 2024, with further increases possible.

• Focus on attracting end customers, selling uncontracted energy at higher prices, and leveraging opportunities amid energy price volatility.