Engie Brasil Energia (EGIE3) Q3 2025 earnings summary

Executive summary

• Physical phases of Assuruá and Assú Sol projects nearly complete, with commercial operations starting on schedule and full commissioning of Serra do Assuruá Wind Complex (846 MW) and significant progress at Assú Sol Photovoltaic Complex (752 MWac).

• Completed acquisition and integration of Santo Antônio do Jari and Cachoeira hydro plants, now contributing to EBITDA and boosting installed capacity.

• Achieved strong operational and financial performance in 3Q25, with significant growth in renewables and transmission segments.

• Recognized for transparency in accounting, governance, and as a top workplace in Brazil, winning the Anefac Transparency Trophy for the 15th time.

• Social capital increase approved via bonus shares to comply with legal requirements and improve share liquidity.

Financial highlights

• Net operating revenue rose 31.8% year-over-year to R$3,343 million in 3Q25, driven by organic growth, inflation, and new assets.

• Adjusted EBITDA increased 12.4% to R$1,871 million; margin decreased to 56.0% from 65.6% year-over-year.

• Adjusted net income grew 9.8% to R$731 million in 3Q25; net recurring income decreased 8.4% year-to-date due to higher depreciation, financial, and tax expenses.

• Net debt increased 28.5% year-over-year to R$24,534 million; net debt/EBITDA at 3.2x.

• TAG delivered BRL 2 billion in EBITDA and nearly BRL 1 billion in net income for the quarter; equity income from TAG contributed R$166 million to EBITDA.

Outlook and guidance

• Full commercial operation of Assú Sol Photovoltaic Complex expected in 1Q26, making it one of Brazil's largest solar operations.

• Ongoing expansion in renewables and transmission expected to further boost EBITDA as new assets come online.

• Awaiting regulatory solutions for curtailment, with operational adjustments expected in Q4.

• Ongoing focus on gradual contracting strategy to optimize future energy prices.

• Capital expenditure plans supported by strong cash flow and prudent funding.