Companhia Paranaense de Energia (CPLE6) Q2 2026 earnings summary

Executive summary

• Delivered strong Q2 2026 results, with recurring EBITDA up 20.8% to R$1,612.6 million and recurring net income up 42.6% to R$645.1 million, driven by operational efficiency, tariff review, and robust performance in distribution and generation.

• Reported net income for Q2 2026 was R$1,047.5 million, an 82.6% increase from Q2 2025, supported by tax benefits from Interest on Equity declaration.

• Net operating revenue grew 10.4% year-over-year to R$5,960.7 million, with strong contributions from higher grid availability and energy sales.

• Investments totaled R$957.2 million, focused on hydro plant expansions and grid modernization.

• Maintained robust business model, disciplined capital allocation, and value creation focus.

Financial highlights

• Recurring EBITDA reached R$1,612.6 million (+20.8% YoY); reported EBITDA was R$1,993.8 million (+26.0% YoY).

• Recurring net income was R$645.1 million (+42.6% YoY); reported net income was R$1,047.5 million (+82.6% YoY).

• Capex for Q2 2026 totaled R$957.2 million, with significant investments in grid modernization and hydro plant expansion.

• Dividend payments of R$1.35 billion were made on June 30, 2026; interest on equity of R$706 million to be paid September 30, 2026.

• Net operating revenue was R$5,960.7 million (+10.4% YoY).

Outlook and guidance

• Portfolio protected against structural price declines, positioned to benefit from hydro capacity during peak demand.

• Maintains minimum dividend payout of 75% and at least two annual payments, with policy unchanged despite leverage flexibility.

• Capital structure targets leverage at 2.9x net debt/EBITDA, with a tolerance band of 2.6x–3.2x.

• Focus on efficiency and service quality, shifting from cost reduction to operational excellence.

• Preparedness plan in place to address climate impacts, leveraging integrated management and contingency planning.