Energisa (ENGI3) Q2 2025 earnings summary

Executive summary

• Recurring adjusted EBITDA rose 21.6%–25% year-over-year in Q2 2025, with net income up 32%–32.5%, driven by strong distribution results and cost management.

• Power distribution achieved record-low losses and improved collection rates, while investments focused on network expansion and biogas.

• Consolidated PMSO costs fell 2.8% year-over-year, remaining below inflation.

• Energy sales grew 2.1% year-over-year, despite less extreme weather and a shorter billing calendar.

• Gas and renewables segments saw margin declines, while distributed generation portfolio expanded.

Financial highlights

• Recurring EBITDA reached up to R$2,177 million (+21.6%–25% year-over-year); net income up to R$490 million (+32.5%).

• Investments totaled R$1,604.3 million in Q2 2025, up 0.8%–9% year-over-year.

• Cash generation closed at R$2.1 billion, with recurring and non-cash adjustments totaling R$233 million.

• Net debt/adjusted EBITDA ratio at 3.0x–3.2x, with net debt at R$27,646.8 million.

• Dividend payout policy stable, with interim dividends of R$457.1 million approved for September 2025.

Outlook and guidance

• Expect continued improvements in cash flow, operational efficiency, and high regulatory EBITDA margins in transmission.

• Transmission segment to benefit from 5.32% RAP adjustment effective 3Q25, raising annual permitted revenue.

• Dividend payout expected around 44% for the semester, to be adjusted at year-end.

• Regulatory concession renewals anticipated by September; further rate reviews scheduled for 2H25.

• Social Electricity Rate expansion and Itaipu Bonus to benefit low-income and rural customers in 2H25.