Eneva (ENEV3) Q1 2026 earnings summary

Executive summary

• Consolidated EBITDA reached R$1,691 million in Q1 2026, up 11% year-over-year, driven by strong thermal dispatch, new gas businesses, and one-off settlement proceeds, despite contract expirations.

• Net income attributable to shareholders was R$522.7 million, a 36% increase compared to 1Q25, with significant contributions from Off-Grid Gas Trading, Sergipe Hub, and Oil-Fired Generation.

• Secured 3.65 GW of new and 1.7 GW of existing capacity in the 2026 auction, consolidating leadership in Brazil's thermal and LNG sectors and enabling new gas hub developments.

• Major M&A activity included the sale agreement for Pecém II TPP and acquisition of Ceará LNG Terminal, expanding monetization opportunities.

• Raised R$2.4 billion via 14th debenture issuance to fund major projects and support liquidity.

Financial highlights

• Net operating revenue was R$4,682.3 million (+5.9% YoY); EBITDA margin improved to 36.1% from 34.5% in 1Q25.

• Adjusted Q1 2026 EBITDA reached R$1,691 billion, up 11% year-over-year; normalized EBITDA grew 23% to R$1,381 billion, excluding contract changes and one-off effects.

• Net income for the period was R$522.7 million, up from R$384.4 million in 1Q25.

• Operating cash flow was R$1,512.4 million, investing cash flow consumed nearly R$2 billion, and financing cash flow saw a net inflow of R$1.3 billion, ending with R$3.5 billion in cash.

• Net financial expense increased to R$432 million from R$253 million year-over-year, mainly due to lower dollar depreciation impacting lease liabilities.

Outlook and guidance

• Ongoing projects and contracted growth supported by a robust pipeline of over 10 GW, with future auctions expected to require over 40 GW of firm capacity by 2035.

• Continued strong dispatch in 2Q26, with over 750 GWh generated in the first 43 days, mainly from own gas assets.

• Execution of regulated capacity contracts from the 2026 Auction expected in June 2026.

• Ongoing development of projects with CODs between 2026 and 2029, including Azulão I & II, Parnaíba SSLNG expansion, Sergipe Hub, and Ceará Hub.