Companhia Paranaense de Energia (CPLE6) Q3 2025 earnings summary

Executive summary

• Recurring EBITDA reached R$1.34 billion in 3Q25, up 7.8% year-over-year, and R$4.18 billion in 9M25, driven by strong performance in generation, transmission, and distribution segments.

• Recurring net income was R$374.8 million in 3Q25, down 36.5% year-over-year, and R$1.4 billion in 9M25, impacted by higher financial expenses and lower equity income.

• CapEx totaled R$981.4 million in 3Q25 and R$2.63 billion year-to-date, supporting service quality, expansion, and asset modernization.

• Portfolio optimization included divestment of four solar plants and Baixo Iguaçu HPP, and consolidation of Mata de Santa Genebra and HPP Mauá.

• Migration to Novo Mercado is expected by year-end, aiming for a simpler, more transparent shareholder structure and increased share liquidity.

Financial highlights

• Recurring EBITDA grew 7.8% year-over-year, driven by efficiency measures and portfolio optimization, with GenCo up 11% and DisCo up 7.2%.

• Recurring net income was R$374.8 million in 3Q25, down 36.5% year-over-year due to higher financial expenses and tax impacts.

• Net debt totaled R$16.6 billion, with a net debt/EBITDA ratio of 3.0x, or 2.8x post-divestment.

• Cost management led to a 4.1% reduction in recurring PMSO expenses and an 18.4% drop in personnel and administrative costs.

• Sales volume rose 2.6% to 4,857 GWh, with DisCo billed market up 1.7%.

Outlook and guidance

• Migration to Novo Mercado and dividend announcement expected by year-end, with a minimum of two dividend events per policy.

• Ongoing cost efficiency initiatives target further reductions through 2026, with more details to be shared at Copel Day.

• Strategic focus will shift from cost-cutting to efficiency and profitability after 2026.

• Tariff review in 2026 is a key milestone, with a target to exceed the market consensus of R$18 billion.

• Asset recycling and portfolio optimization remain strategic priorities, with continued focus on operational efficiency and investment in grid modernization.