CPFL Energia (CPFE3) Q3 2025 earnings summary

Executive summary

• EBITDA reached R$3,175 million in 3Q25, up 0.3% year-over-year; net income was R$1,376 million, up 3.3% from 3Q24; accumulated EBITDA for the year grew 1.9%, and accumulated net income was R$4,178 million, a slight 0.2% decrease.

• Distribution segment saw strong EBITDA growth of 11.4%, driven by tariff adjustments and improved allowance for doubtful accounts (ADA), which decreased 24.7% in 3Q25 and 31% over nine months.

• Major transmission auction win (Lot 3), the largest in the auction, with assets in Paraná and Rio Grande do Sul, adding 115 km of lines and four substations, with operations expected by 2030.

• Received a global scale credit rating of BBB from Fitch, three notches above the sovereign rating, supporting competitive access to international markets.

• Gross operating revenue rose 9.3% to R$16,834.3 million in Q3 2025, mainly due to higher sector financial assets, other operating revenues, and tariff adjustments.

Financial highlights

• CapEx expanded 19.2% year-over-year, reaching R$1.7 billion in the quarter and R$4.4 billion year-to-date, mainly in distribution.

• Net debt stood at R$28.7 billion, with a leverage ratio of 2.19x Net Debt/EBITDA, consistent with previous quarters.

• Cash position remains strong at nearly R$6 billion at quarter-end, with 2025 and 2026 fully funded.

• Distribution EBITDA was R$1,839 million in 3Q25 (+11.4%); Generation EBITDA was R$1,070 million (-3.4%); Transmission EBITDA was R$248 million (-33.6%).

• Gross debt cost at 12.2% (nominal) and 8.6% (real) at 3Q25.

Outlook and guidance

• Investment for the year expected to exceed R$6 billion, with a multiannual plan of R$29.8 billion for 2025-2029, mainly allocated to distribution.

• Positive long-term outlook with a clear agenda for new acquisitions, participation in future auctions, and focus on operational efficiency and financial discipline.

• Strategy remains disciplined, focusing on assets with strategic fit and maintaining leverage around 2.2x.

• Participation in COP30 and sectoral climate change discussions to reinforce ESG and sustainability commitments.