Eneva (ENEV3) Q2 2025 earnings summary

Executive summary

• Achieved record consolidated EBITDA of R$1.668 billion in Q2 2025, up 56% year-over-year, driven by strong operating performance, asset acquisitions, and robust On-grid and Off-grid gas sales.

• Parnaíba Complex dispatch averaged 32% in Q2 2025, generating 1,304 GWh, with thermal plants' accelerated dispatch and incremental value from new supply contracts.

• Net operating revenue for the first half of 2025 reached R$7.94 billion, up from R$3.95 billion year-over-year, with consolidated net income of R$954.8 million.

• Major events included R$500 million financing for Azulão projects, early start of capacity reserve contracts for UTE Viana, Parnaíba IV, and Geramar, and SUDENE tax benefit renewal for Parnaíba II.

• Operating cash flow hit a record R$1.301 billion, up 36% year-over-year, supporting investments and debt payments.

Financial highlights

• Q2 2025 EBITDA reached R$1.668 billion, a 56% increase over Q2 2024, with EBITDA margin at 47.5% and operating cash flow of R$1.301 billion.

• Net financial results improved by R$667 million year-over-year, mainly due to positive FX and mark-to-market impacts.

• Net debt at quarter-end was R$15.3 billion, with net debt/EBITDA at 2.7x (2.4x adjusted), and cash position of R$3.86 billion.

• Gross profit for the first half was R$2.66 billion, with gross margin at 33.5% and net margin at 12%.

• Basic and diluted earnings per share for the six months were R$0.39, compared to R$0.67 in the prior year.

Outlook and guidance

• Liquefaction plant capacity to increase by 50% with a third train, targeting 900,000 m³/day; full contracted volume expected by end of next year.

• High thermal dispatch expected to continue through at least November 2025, with early start of capacity reserve contracts for Viana, Geramar, and Parnaíba IV, adding over R$362 million in incremental fixed revenues.

• Azulão 1 commissioning set for Q2 2026 and Azulão 2 for Q1 2027; PPAs to begin August 2026 and July 2027, respectively.

• Approval for the renewal of a 75% corporate income tax reduction for Parnaíba II through 2034.

• New regulatory CVUs for Porto de Sergipe and Linhares TPPs provide additional generation options from September to December 2025.