Energisa (ENGI3) Q1 2025 earnings summary

Executive summary

• Achieved solid operational results in Q1 2025, with disciplined capital allocation and cost management, despite a challenging economic environment in Brazil.

• Net income reached R$1,026.7 million in 1Q25, down 9.5% year-over-year, with adjusted recurrent EBITDA at R$1,857.8 million, a 15.8% decrease, mainly due to negative rate adjustments in the distribution segment.

• Power distribution added 33,000 new consumer units, an 11% increase in 1Q25, and collection rates reached historic highs.

• Delinquency rates and churn improved, with collection rate at 97.01%, the best historical result.

• Advanced investment plans, especially in Espírito Santo, targeting up to R$1 billion by 2030 for infrastructure and energy democratization.

Financial highlights

• Consolidated net revenue (excluding construction) reached R$7.0 billion in 1Q25, up 4.4% year-over-year.

• Adjusted EBITDA for covenants was R$2,506.1 million, down 4.8% year-over-year; recurrent adjusted EBITDA was R$1,960 million, down 15.8% compared to 1Q24.

• Recurrent adjusted net income was R$391 million, a 47.9% decrease year-over-year.

• Extraordinary tariff adjustment in Rondônia contributed R$177 million to EBITDA and R$185 million to net income.

• Investments totaled R$1,327.6 million, nearly flat year-over-year.

Outlook and guidance

• Expectation of continued cost control with PMSO growth below inflation.

• ES Gás Acceleration Plan and business plan target up to R$1 billion in investments by 2030, focused on expanding natural gas infrastructure.

• Concession renewal processes expected to conclude by end of August, with TCU oversight.

• The company reaffirmed its ESG and investment targets, with progress on decommissioning thermal plants and expanding renewable capacity.