Engie Brasil Energia (EGIE3) Q1 2026 earnings summary

Executive summary

• Net operating revenue grew 13.1% year-over-year to R$3,409 million in Q1 2026, driven by higher energy sales and prices, with adjusted EBITDA up 10.0% to R$2,244 million and adjusted net income down 4.1% to R$789 million.

• Expanded installed capacity by 1.4 GW, including a 195.78 MW Jaguara HPP contract for 15 years and new transmission concessions, with significant investments in wind and solar projects.

• Maintained strong credit ratings, approved R$557.8 million in dividends for FY25, and continued inclusion in major sustainability indices for 21 years.

• Achieved high operational uptime across hydro (99.5%), wind (93.0%), and transmission (99.78%) assets.

• Secured long-term revenue streams through successful generation and transmission auctions.

Financial highlights

• Net operating revenue: R$3,409 million (+13.1% YoY); Adjusted EBITDA: R$2,244 million (+10.0% YoY); Adjusted net income: R$789 million (-4.1% YoY).

• Gross power generation reached 5,840 average MW (+8.4% YoY); energy sold was 4,904 average MW (+10.5% YoY).

• Average net sales price: R$216.76/MWh (+1.3% YoY).

• Net debt stood at R$24,984 million, with Net Debt/EBITDA at 3.2x.

• Adjusted ROE was 19.0% (down 6.8 p.p. YoY); Adjusted ROIC was 13.9% (down 2.3 p.p. YoY).

Outlook and guidance

• Ongoing investments in renewable generation and transmission projects, including Asa Branca, Graúna, Assuruá, and continued expansion in Jaguara and Colibri.

• Positive outlook for natural gas transportation with R$4.1 billion in planned investments over five years.

• Strong cash flow and prudent funding to support CAPEX plans through 2028.

• Expectation of more auctions in 2026, with regulatory issues to be resolved in coming months.

• Diversified energy contracting with long-term duration in both regulated and free markets.