Energisa (ENGI3) Q2 2025 earnings summary

Executive summary

• Recurring adjusted EBITDA rose 21.6% year-over-year to R$1,943.2 million in 2Q25, driven by 16.6% growth in distribution revenue and a 2.8% reduction in consolidated PMSO expenses.

• Recurring adjusted consolidated net income increased 32.5% to R$440.5 million in 2Q25, despite a 25.2% drop in reported net income due to non-cash effects.

• Power distribution achieved record-low losses and improved collection rates, with total losses at a historical minimum.

• Energy sales grew 2.1% year-over-year to 10,490 GWh, despite lower temperatures and a shorter billing calendar.

• Investments increased 0.8% year-over-year to R$1,604.3 million, focused on network expansion, new user connections, and biogas plant construction.

Financial highlights

• Adjusted net revenue grew 8.1% year-over-year to R$11,577.4 million in 2Q25; consolidated net revenue (ex-construction) up 14.9% to R$6,939.9 million.

• EBITDA (reported) was R$2,176.5 million in 2Q25 (+22.6% YoY); adjusted EBITDA for covenants was R$2,288.6 million (+21.6%).

• Net debt reached R$27,646.8 million at June 2025, with leverage (Net Debt/EBITDA adj. covenants) at 3.2x.

• Cash and equivalents plus financial investments: R$10,131.7 million at June 2025.

• Net income attributable to the parent was R$257.3 million in 2Q25 (-49.1% YoY); 1H25 was R$1,033.0 million (-26.6%).

Outlook and guidance

• Transmission segment to benefit from a 5.32% RAP increase for 2025/2026 cycle, effective from 3Q25.

• ANEEL approved tariff increases for ETO (+12.68%) and ESS (+19.05%) effective July 2025.

• ES Gás will see a 5.23% average tariff reduction for consumers from August 2025.

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

• Management reaffirmed long-term investment guidance and ESG commitments, with R$22.2 billion invested by June 2025 toward a R$24 billion target by 2026.