Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDN) Q1 2025 earnings summary

Executive summary

• 1Q25 revenue rose 48% YoY to ARS 638,535M and EBITDA reached ARS 63,243M, supported by tariff adjustments and operating improvements.

• Net income was ARS 35,911M, down 68% YoY, as the prior-year period had a larger inflation-adjustment gain.

• Service-quality indicators improved, while operating cash flow supported investment and debt repayments.

Financial highlights

• Revenue increased 48% YoY to ARS 638,535M; energy purchases rose 52% to ARS 380,182M and distribution margin increased 43% to ARS 258,353M.

• EBITDA was ARS 63,243M versus ARS 6,854M in 1Q24; operating results improved to ARS 23,085M from a loss of ARS 34,624M.

• Net income was ARS 35,911M versus ARS 113,542M, mainly reflecting a lower inflation-adjustment gain.

• Operating expenses rose 6.8% YoY to ARS 233,998M, driven by higher taxes, charges and receivables impairments, partly offset by lower penalties.

• Net financial loss narrowed 80% YoY to ARS 68,341M, mainly due to lower interest expenses on CAMMESA debt.

Outlook and guidance

• The 2025–2029 tariff review approved a 14.35% increase: 3% in May 2025, followed by monthly increases of 0.42% from June 2025 through November 2027.

• Approved VAD was ARS 619.4bn in December 2023 currency, equivalent to ARS 1,209.3bn at May 2025 values; monthly updates use 33% CPI and 67% IPIM.

• 2025 commissioning plans included the Newbery substation project in September and the Martínez 132/13.2 kV substation in October.