Energisa (ENGI3) Q4 2024 earnings summary

Executive summary

• Celebrated 120 years of operations, emphasizing resilience, innovation, entrepreneurship, and commitment to stakeholders, with a focus on energy transition and diversification, including entry into natural gas and biomethane markets.

• Achieved a 10-year net income CAGR of ~30% and a 526% increase in net income from 2014 to 2024.

• Record parent company net income of R$3.8 billion in 2024, up 100.1% year-over-year, and distributed R$2.90/unit in dividends.

• Investments totaled R$6.8 billion in 2024, with strong operational performance despite sector challenges and extreme weather events.

• Diversified business model now spans electricity, gas, and distributed generation, with a focus on sustainable growth and long-term value creation.

Financial highlights

• Recurrent adjusted consolidated EBITDA for 2024 was R$7.63 billion (+8.1% YoY); recurring EBITDA grew 8% year-over-year.

• Adjusted net income for 2024 reached R$2 billion, up 22.6% from 2023; unadjusted net income was R$3.8 billion, up 100% due to non-recurring items.

• Consolidated net income reached R$4.64 billion in 2024 (+79.5% YoY); 4Q24 net income was R$2.12 billion (+190.6% YoY).

• Distributed generation arm reached 441 MWp capacity, with BRL 351.3 million invested in 2024.

• Non-recurring effects included a BRL 430.2 million negative impact from non-compensated distributed generation energy and BRL 458.2 million in positive tax credits.

Outlook and guidance

• Early renewal of distribution concessions expected to be finalized in 2025, extending contracts by 30 years and supporting long-term industry development.

• Ongoing investments above regulatory depreciation to maintain operational excellence and support growth, with a focus on distributed solar generation, natural gas, and biomethane operations.

• Strategic investments are focused on maximizing growth, with a 29% increase in power distribution investments and a 116% increase in holding company and other investments for 2024.