AXIA Energia (AXIA6) Q3 2025 earnings summary

Executive summary

• Distributed R$4.3 billion in dividends in 3Q25, totaling R$8.3 billion for 2025, enabled by asset sales, operational efficiency, and a de-risked, fully renewable portfolio.

• Completed sale of Eletronuclear and EMAE stakes, acquired remaining 50.1% of Tijoá Energia, and exited thermal generation, aligning with Net Zero 2030 target.

• Won four lots in Transmission Auction No. 04/2025, securing R$138.74 million RAP and R$1.63 billion in projected CAPEX.

• Investments reached R$2.7 billion in 3Q25, up 57% year-over-year, focused on transmission expansion.

• Reported a consolidated net loss of R$7.13 billion for the nine months ended September 30, 2025, mainly due to one-off expenses and asset divestments.

Financial highlights

• Adjusted regulatory net revenue was R$9,969 million in 3Q25, down 4.6% YoY, with adjusted regulatory EBITDA (ex-Amazonas TPP) up 3.4% YoY to R$6,419 million, driven by higher transmission revenue and lower PMSO expenses.

• Adjusted net income dropped 68% YoY, mainly due to asset sales, provisions, and non-recurring regulatory remeasurement.

• Net operating revenue for the nine months ended September 30, 2025, reached R$30.6 billion, up from R$28.2 billion YoY.

• Operating costs and expenses increased to R$27.6 billion from R$14.9 billion, mainly due to higher provisions, impairment, and divestment losses.

• Equity income rose to R$1,265 million from R$749 million YoY, driven by RAP increase and TNE concession.

Outlook and guidance

• Price resilience expected in 2026, with advances in energy trading, robust investment agenda, and a fully renewable portfolio supporting long-term growth.

• 230 large-scale transmission projects underway, with R$1.7 billion additional RAP expected between 2025-2030 and R$12.5 billion in total CAPEX.

• Focus on acquiring end clients, selling uncontracted energy, and maintaining operational efficiency.