Engie Brasil Energia (EGIE3) Q4 2024 earnings summary

Executive summary

• Net operating revenue grew 4.4% year-over-year to R$11,219 million in 2024, driven by record investments and expansion in renewable energy capacity, including early entry into operation for Serra do Assuruá Wind Complex and Assú Sol Photovoltaic Complex.

• Adjusted EBITDA rose 1.3% to R$7,367 million, with a margin of 65.7%, while adjusted net income was R$3,372 million, down 1.4% from 2023 due to higher depreciation and lower equity income from TAG.

• Net income increased 25.5% to R$4,303 million, mainly due to non-recurring gains from the sale of a TAG stake.

• Added 1.2 GW of proprietary installed capacity, reaching 9.6 GW of 100% renewable energy across 115 plants.

• Recognized for sustainability and workplace excellence, including Dow Jones Sustainability Index, Corporate Knights Global 100, and Great Place to Work certification.

Financial highlights

• Net operating revenue: R$11,219 million (+4.4% YoY); adjusted EBITDA: R$7,367 million (+1.3% YoY); adjusted EBITDA margin: 65.7%.

• Net income: R$4,303 million (+25.5% YoY); adjusted net income: R$3,372 million (-1.4% YoY).

• Net debt: R$20,126 million (+31.2% YoY); net debt/EBITDA: 2.7x.

• Dividend payout: 55% of adjusted net income, dividend yield 5.6%.

• Investments: R$9,664 million in 2024, mainly in wind and solar, with R$8.5 billion committed for 2025-2027.

Outlook and guidance

• R$8.5 billion in investments committed for 2025-2027, focused on renewable generation and transmission expansion.

• Full commercial operation of Serra do Assuruá Wind Complex and Assú Sol Photovoltaic Complex expected in 2025.

• Expansion plan supported by strong cash flow and prudent funding, with major projects under construction in wind, solar, and transmission.

• Gradual sale of future energy availability to hedge hydrological risk.

• Anticipates further growth in the Free Energy Market and continued expansion in transmission and gas infrastructure.