AXIA Energia (AXIA6) Q4 2024 earnings summary

Executive summary

• Achieved record net income of R$10.4 billion in 2024, up 136.2% year-over-year, driven by operational efficiency, regulatory gains, and portfolio optimization.

• Privatization led to transformation, workforce renewal, cost reduction, and advanced liability management.

• Focused on innovation, ESG, decarbonization, and human rights policy, with major investments in generation and transmission.

• Largest dividend distribution in history: R$4 billion, equivalent to 60% of regulatory net income and 41% of 2024 net income.

• Major corporate events included the incorporation of Furnas, sale of thermal assets, and significant asset swaps and divestitures.

Financial highlights

• Net revenue reached R$40.2 billion, up 8.1% from 2023; generation revenue grew 5.6% to R$28.1 billion, transmission revenue increased 10.7% to R$19.3 billion.

• IFRS net income was R$10,378 million in 2024, the third highest in company history; full-year net income was R$8,796 million, up 86.6% year-over-year.

• Consolidated EBITDA of R$26.2 billion (+51.2% YoY); EBIT of R$22.2 billion (+62% YoY); adjusted regulatory EBITDA was R$5,089 million in 4Q24.

• Net debt at R$37.7 billion, with Net Debt/EBITDA ratio improved to 1.5x; gross debt at R$75.6 billion, with R$32 billion raised in 2024.

• Total investments of R$7.7 billion, with R$3.1 billion in generation and R$3.7 billion in transmission.

Outlook and guidance

• Focus on expanding renewable generation, modernizing hydro plants, and strengthening transmission infrastructure.

• Growth agenda includes hydro, green hydrogen, storage, and transmission, with high potential for new projects over the next five years.

• Commitment to net zero emissions by 2030, validated by SBTI.

• 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.