Companhia Paranaense de Energia (CPLE6) Q4 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q4 and full year 2025, with recurring EBITDA reaching R$1.36 billion in Q4 (+16.1% YoY) and recurring net income of R$682.6 million (+29.6% YoY), despite challenging hydrological conditions and curtailment impacts.

• Distributed record shareholder remuneration in 2025, totaling R$3.8 billion, including R$1.3 billion Novo Mercado premium, with a payout ratio of 144% and dividend yield of 14%.

• Advanced governance by migrating to Novo Mercado, achieving top 10% in S&P Global Corporate Sustainability Assessment and grade "A" in CDP 2025.

• Launched a multi-year investment plan of R$18 billion, focusing on distribution, generation, and transmission, and completed strategic divestments and asset consolidations.

• Appointed new GenCo General Officer and completed board leadership transitions.

Financial highlights

• Recurring EBITDA: R$1.36 billion in Q4 2025 (+16.1% YoY); recurring net income: R$682.6 million (+29.6% YoY); net operating revenue: R$6.87 billion in Q4 (+16.9% YoY).

• CapEx: R$767.6 million in Q4; R$3.4 billion for 2025, focused on modernization and infrastructure expansion.

• Leverage at year-end: 2.7x net debt/EBITDA; total consolidated debt: R$20.04 billion; average debt cost: 87.74% of CDI.

• Operating cash flow: R$519.2 million in Q4; R$3.0 billion in 2025.

• Non-recurring compensation for curtailment impacted EBITDA by R$265.7 million.

Outlook and guidance

• Five-year investment plan of R$18 billion, targeting service quality, operational efficiency, and innovation.

• Leverage target range: 2.5x–3.1x net debt/EBITDA, converging to 2.8x within 24 months.

• Upcoming opportunities include the 2026 Periodic Tariff Review and Reserve Capacity Auction for hydro expansions.

• Minimum dividend distribution set at 75% of net income, with at least two payments per year.

• Strategic focus on portfolio optimization and sustainable value creation.