Equatorial Energia (EQTL3) Q2 2025 earnings summary

Executive summary

• Adjusted consolidated EBITDA rose 32.4% year-over-year to R$3.2 billion in 2Q25, driven by distribution margin growth and renewable energy expansion.

• Adjusted net income doubled to R$614 million, with consolidated net income reaching R$1.07 billion, up over 100% from 2Q24.

• Investments totaled R$2.7 billion, up 32.4% year-over-year, mainly allocated to distribution and electrical assets.

• All distribution companies are now within regulatory FEC limits, with improved DEC metrics and consolidated billable energy volume up 4%.

• Maranhão and Pará concession renewals approved by ANEEL, with contract extensions expected to be signed by September 2025.

Financial highlights

• Net operating revenues grew 22% year-over-year to R$12.8 billion in 2Q25.

• Adjusted EBITDA margin improved to 25.1% from 23.1% in 2Q24.

• Net debt/EBITDA ratio at 3.1x, with net debt at R$45.2 billion and cash/short-term debt coverage at 1.3x.

• CapEx reached R$2.7 billion, up 32.4% year-over-year, mainly in distribution.

• Sabesp's equity pickup contributed R$312 million.

Outlook and guidance

• Contract amendments for concession renewals expected to be signed between October and November, with management focused on operational quality, regulatory compliance, and value generation.

• Sale of certain transmission assets to Verene Energia S.A. (CDPQ) for up to R$9.4 billion pending approvals.

• Ongoing monitoring of regulatory, climate, and macroeconomic risks, including tax reform and extreme weather events.