Companhia Paranaense de Energia (CPLE6) Q2 2025 earnings summary

Executive summary

• Recurring EBITDA reached R$1.3 billion in 2Q25, up 4.2% year-over-year, with net income above R$450 million and CapEx of R$975 million, aligning with the annual projection over R$3 billion.

• Net operating revenue for 1H25 reached R$12.1 billion, up 11.2% year-over-year, driven by higher energy sales to distributors and increased construction income.

• Migration to Novo Mercado is underway, aiming to unify share classes and boost liquidity, though temporarily delayed by a minority shareholder's request.

• Portfolio optimization included the sale of small hydro assets, asset swap with Eletrobras, and consolidation of new assets.

• Recognized for ESG leadership and operational excellence, winning multiple industry awards.

Financial highlights

• Recurring EBITDA rose 4.2% to R$1.3 billion in 2Q25, with GenCo and DisCo performance as key drivers.

• Recurring net income was R$452.4 million in 2Q25, down 9.5% year-over-year, mainly due to a 38.7% increase in financial expenses.

• CapEx for the quarter was R$975.3 million, totaling R$1.6 billion for 1H25, supporting an accelerated investment cycle.

• Net debt reached R$16.6 billion, with leverage at 2.9x net debt/EBITDA, in line with policy.

• EBITDA margin reached 25.4% in 2Q25, up from 23.8% in 2Q24.

Outlook and guidance

• CapEx is on track to exceed R$3 billion for 2025, with investments focused on expanding the remuneration base and modernizing infrastructure.

• Migration to Novo Mercado expected to conclude by year-end if regulatory delays are resolved promptly.

• Dividend policy remains unchanged, with at least two annual payments planned and a minimum payout of 75% of net income.

• Participation in upcoming capacity auctions is anticipated, pending regulatory guidelines.

• Ongoing focus on asset portfolio decarbonization and operational efficiency.