AXIA Energia (AXIA6) Q4 2024 earnings summary

Executive summary

• Achieved significant transformation post-privatization, including operational, cultural, and workforce renewal, cost reduction, and advanced liability management, highlighted by the incorporation of Furnas and simplification of the corporate structure.

• Focused on customer-centric energy trading, innovation, and ESG initiatives, including decarbonization, human rights policy, and net zero 2030 goals.

• Major investments in generation and transmission, with active participation in auctions, asset availability improvements, and portfolio management through divestments and acquisitions.

• Distributed the largest dividend in company history, with a payout of R$4 billion, representing 41% of 2024 net income.

• Raised R$32 billion in funding, including post-privatization bond issues and international financing, ending the year with high liquidity.

Financial highlights

• Net operating revenue rose 8.1% year-over-year to R$40.2 billion, with generation revenue up 5.6% to R$28.1 billion and transmission revenue up 10.7% to R$19.3 billion.

• Consolidated EBITDA surged 51.2% to R$26.2 billion; net income jumped 136.2% to R$10.4 billion; recurring EBITDA reached BRL 5.1 billion.

• Gross debt reached R$75.6 billion, with average debt term extended and cost reduced; net debt stood at R$37.7 billion, with a net debt/adjusted EBITDA ratio of 1.5x.

• Divestments totaled R$15 billion, acquisitions R$5.7 billion, optimizing the equity portfolio.

• Dividend payout proposed at R$4 billion for 2024, exceeding the minimum required.

Outlook and guidance

• Continued investment in transmission and generation, with a focus on greenfield projects, auction participation, and innovation in hydro, green hydrogen, and storage.

• Conservative approach to leverage and capital allocation due to increased market volatility and shrinking reservoirs.

• Improved hydrological scenario expected in 2025, with higher average prices for 2026 due to repricing of risks.

• PMSO costs expected to decline further, targeting below BRL 6 million in 2025.

• Focus remains on financial flexibility, prudent capital allocation, and maximizing shareholder value.