Energisa (ENGI3) Q2 2026 earnings summary

Executive summary

• Recurring adjusted EBITDA reached R$1.95 billion in 2Q26, up 1% year-over-year, with net debt/EBITDA improving from 3.5x to 3.1x, reflecting deleveraging and portfolio management.

• The quarter was marked by significant non-recurring effects: a R$596 million non-cash accounting loss from the sale of transmission assets and a positive R$489 million EBITDA impact from the Rondônia (ERO) tax settlement, which reduced judicial contingencies by 60%.

• Four major electricity distribution concessions were renewed for 30 years, enhancing long-term growth visibility and predictability.

• Asset divestments and quasi-equity initiatives contributed to deleveraging and capital structure strengthening.

• Operational improvements in electricity and gas distribution were supported by investments in regulatory compliance and service quality.

Financial highlights

• Consolidated net revenue (excluding construction) rose 8% year-over-year to R$7.46 billion in 2Q26; gross operating revenue reached R$12.78 billion (+10%).

• Adjusted recurring net income was R$88 million, down 80% year-over-year, mainly due to higher financial expenses; consolidated net income was a loss of R$40 million.

• Investments totaled R$1.71 billion in 2Q26, up 7% year-over-year, focused on expanding electricity and gas infrastructure.

• Electricity distribution investments increased 12% year-over-year to R$1,567 million.

• Gas distribution EBITDA grew 86% year-over-year to R$58 million; ES Gás reached 100,000 customers.

Outlook and guidance

• Continued focus on operational growth, portfolio optimization, value creation, and deleveraging through asset divestments and capital injections.

• Regulatory tariff adjustments and new concession contracts are expected to support stable cash flows and long-term growth.

• Management discontinued certain EBITDA projections due to the transmission asset divestment and surpassed other operational targets ahead of schedule.