Energisa (ENGI3) Q4 2025 earnings summary

Executive summary

• Achieved recurring adjusted EBITDA of R$8.2 billion, up 9.5% year-over-year, and recurring net income of R$2.065 billion, also up 9.5%, with strong cost discipline and investment capacity maintained despite a challenging macroeconomic environment.

• Investments totaled R$6.6 billion, supporting modernization, digitalization, and grid resilience, with continued expansion in energy and gas distribution.

• Distribution business reached 9 million clients, with robust EBITDA growth and operational efficiency gains.

• Strategic diversification advanced, including expansion in natural gas, biomethane, and distributed generation.

• Record annual dividends and consistent outperformance versus the Ibovespa index.

Financial highlights

• Adjusted net revenue for 2025 was R$48.7 billion, up 5.3% year-over-year; consolidated net revenue (ex-construction) was R$29.1 billion, up 7.3%.

• Recurring adjusted EBITDA for 2025 was R$8.2 billion (+9.5% YoY); recurring net income was R$2.065 billion (+9.5% YoY).

• Net income for Q4 2025 grew 151% to BRL 806 million; full-year net income was BRL 2.1 billion, up 9.5%.

• Net debt reached R$32.8 billion, with net debt/EBITDA at 3.6x (up from 3.0x in 2024); average debt maturity was 6.6 years.

• Dividend yield for 2025 was 7.6%; ENGI11 units appreciated 42.2% in 2025, outperforming Ibovespa.

Outlook and guidance

• 2026 investment plan set at R$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 operational efficiency, digitalization, ESG, and network modernization, with continued growth in gas and biogas segments.

• ES Gás expects 16% higher investments in 2026, focusing on infrastructure and customer growth.

• ESG commitments ahead of schedule, with targets for renewable energy and social impact surpassed.