Energisa (ENGI3) Q4 2025 earnings summary

Executive summary

• Achieved recurring adjusted EBITDA growth of 9.5% to R$8.2 billion in 2025, with strong cost discipline and investment capacity maintained despite a challenging macroeconomic environment.

• Recurring adjusted net income reached R$2.065 billion, up 9.5% year-over-year, with a decade-long CAGR of 23.6%.

• Strategic investments and disciplined capital allocation supported expansion across electricity, gas, renewables, and distributed generation, with a focus on energy transition and innovation.

• Record annual dividends and total shareholder return since re-IPO exceeded 260%, with consistent outperformance versus the Ibovespa index.

• Celebrated 120 years, expanding to serve 97% of Brazil and over 20 million people.

Financial highlights

• Recurring adjusted EBITDA for 2025 was R$8.2 billion, up 9.5% year-over-year; recurring adjusted net income was R$2.065 billion, up 9.5%.

• Q4 2025 recurring adjusted EBITDA reached BRL 2.3 billion, up 21.7% year-over-year; Q4 net income surged 151% to BRL 806 million.

• PMSO expenses decreased 1.7% year-over-year, reflecting efficiency gains.

• Net debt at year-end was BRL 32.8 billion, with leverage at 3.6x (3.3x excluding one-time effects); average debt maturity was 6.6 years.

• Dividend yield for 2025 was 7.6%; total shareholder return since re-IPO exceeds 260%.

Outlook and guidance

• 2026 investment plan set at BRL 7–7.1 billion, a 7% increase, with 90% allocated to electricity distribution.

• Renewals of key distribution concessions extend cash flow visibility and support a new investment cycle.

• Focus on grid modernization, regulatory compliance, ESG, and innovation, with continued investment in decarbonization and digitalization.

• Natural gas and biomethane seen as long-term growth frontiers, with new plants and infrastructure expansion planned.

• ES Gás to increase investments by 16% in 2026, focusing on infrastructure and customer growth.