Centrais Elétricas de Santa Catarina (CLSC4) Q1 2025 earnings summary

Executive summary

• Consolidated revenue rose 14.5% YoY to R$2.978bn; EBITDA increased 20.3% to R$550.2m and net income rose 8.9% to R$252.7m.

• Revenue excluding construction revenue increased 14.4% to R$2,739m; billed energy rose 5.0% to 8,195 GWh.

• Higher electricity demand and tariff-related revenue supported growth, while rising energy costs, doubtful-account provisions and financing expenses weighed on results.

• KPMG’s interim review found no indication that the financial information was materially non-compliant with CPC 21 (R1) and IAS 34.

Financial highlights

• Gross operating revenue rose 12.4% YoY to R$4.631bn; operating costs and expenses increased 13.1% to R$2.535bn and EBIT rose 16.5% to R$377.7m.

• Gross profit reached R$620.9m, up from R$525.1m; earnings before financial result and taxes were R$459.0m, versus R$373.7m.

• Financial result was negative R$81.3m versus negative R$49.5m; income tax and social contribution expense rose to R$125.1m from R$92.1m.

• Cash and equivalents were R$755.3m at quarter-end, down from R$1.019bn at year-end; operating cash flow was R$31.2m versus R$239.0m in 1Q24.

Outlook and guidance

• Collection actions were planned to resume gradually from April through July 2025, first in selected municipalities and then statewide, following commercial-system stabilization.

• Planned investments include ~R$70m for the Caveiras expansion and ~R$240m for Salto Weissbach, with part of its funding expected from BNDES.

• A five-year climate resilience and sustainability program is scheduled to begin in 2026, with investments exceeding US$305m, including US$243m of planned IDB financing.

• A R$4.5bn electricity-sector investment plan was outlined through 2026; the EV charging corridor expansion targets 100 municipalities in 2025, with planned investment above R$5m.

• Rio Bonito construction and Cedros and Pinhal development are planned to advance through environmental, regulatory and design work in 2025.