Engie Brasil Energia (EGIE3) Q1 2025 earnings summary

Executive summary

• Installed capacity increased by 908 MW year-over-year to 9,916 MW, with total generation park at 11,626 MW and 612 MW pending from hydro acquisitions.

• Achieved 20 consecutive years in the Corporate Sustainability Index (ISE), ranking 4th among 82 companies.

• Major progress in Serra do Assuruá Wind Complex (846 MW, 99% complete) and Assú Sol Photovoltaic Complex (752 MWac, 93% complete), with commissioning expected through 2025.

• Total distributed profits for 2024 reached R$1,898.0 million, with a 55% payout of distributable net income.

• Signed contracts to acquire Santo Antônio do Jari and Cachoeira Caldeirão hydro plants, adding 612 MW of fully contracted capacity upon closing.

Financial highlights

• Net operating revenue rose 15.5% year-over-year to R$3,013 million in 1Q25.

• Adjusted EBITDA grew 12.4% to R$2,040 million; adjusted net income up 3.8% to R$823 million year-over-year.

• Net income (reported) fell 51% to R$826 million due to non-recurring items in 1Q24.

• Net debt increased to R$20,672 million; Net Debt/EBITDA at 2.3x–2.7x.

• Dividend distribution of R$715.1 million (55% payout) approved for FY24.

Outlook and guidance

• Full commercial operation of Serra do Assuruá Wind Complex and Assú Sol Photovoltaic Complex expected in 1H25 and 4Q25, respectively.

• CapEx for 2025 projected at R$7,081 million, mainly for wind, solar, and transmission projects.

• Dividend payout policy maintained at a minimum of 55% due to ongoing expansion and growth.

• Leverage expected to increase with new investments but remains within acceptable levels, with a focus on maintaining AAA rating.

• Ongoing acquisition of hydro assets to further diversify and stabilize contracted revenue.