Engie Brasil Energia (EGIE3) Q1 2026 earnings summary

Executive summary

• Net operating revenue rose 13.1% year-over-year to R$3,409 million in 1Q26, driven by higher generation, trading volumes, and energy sales, partially offset by a decline in transmission revenue.

• Adjusted EBITDA increased 10.0% to R$2,244 million, with margin at 65.8%, while adjusted net income declined 4.1% to R$789 million, mainly due to higher financial expenses and depreciation.

• Expansion of installed capacity by 1.4 GW, including the full commercial operation of the 752 MW Assú Sol Photovoltaic Complex and new wind and solar projects.

• Secured 195.78 MW in Jaguara HPP for 15 years and won new transmission concessions, including two lots in Aneel's 2026 auction with annual RAP of R$122.8 million.

• Maintained strong credit ratings, top ESG rankings, and approved R$557.8 million in dividends for FY25, with continued inclusion in major sustainability indices.

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).

• EBITDA margin: 65.8% (down 1.9 p.p. YoY); Adjusted ROE: 19.0% (down 6.8 p.p. YoY); Adjusted ROIC: 13.9% (down 2.3 p.p. YoY).

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

• 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).

Outlook and guidance

• Ongoing investments in renewable generation and transmission projects, including Asa Branca, Graúna, Assú Sol, and major projects under construction.

• 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.

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

• Management is monitoring regulatory changes and potential impacts from sector reforms and new laws.