Centrais Elétricas de Santa Catarina (CLSC4) Q2 2025 earnings summary

Executive summary

• Q2 net operating revenue rose 10.7% YoY to R$2.90bn; excluding construction revenue, it increased 8.3% to R$2.63bn.

• 6M25 net operating revenue rose 12.6% to R$5.88bn; EBITDA increased 0.7% to R$993.4m, while net income fell 21.3% to R$401.2m.

• Higher energy and operating costs, credit losses and financial expenses pressured results; generation benefited from higher billed energy and market prices.

Financial highlights

• Q2 consolidated gross operating revenue rose 8.8% to R$4.45bn, while operating costs and expenses increased 17.1% to R$2.56bn.

• Q2 EBITDA was R$443.2m, down 16.2%, and net income was R$148.5m, down 46.5% from R$277.6m.

• 6M25 gross profit rose to R$1.13bn from R$1.06bn; operating result was R$807.8m versus R$817.8m, and net income was R$401.2m versus R$509.6m.

• 6M25 financial result was a R$241.1m loss versus a R$105.2m loss; income tax expense was R$165.5m versus R$203.0m.

• Distribution energy costs rose 12% in Q2 and 13.6% in 6M25; PMSO increased 20.8% and 7.0%, respectively.

Outlook and guidance

• The proposed IDB II program envisages US$305.6m of investment, including US$243.0m in intended IDB financing and US$62.6m in matching funds, for grid modernization and resilience.

• Planned distribution investments target system expansion, reliability, efficiency and modernization; two 2 MW solar projects were expected to start in September 2025.

• A planned electric-vehicle corridor investment exceeding R$5m aims to expand charging points from 35 to 100 across Santa Catarina during 2025.