Equatorial Energia (EQTL3) Q4 2024 earnings summary

Executive summary

• Achieved record adjusted consolidated EBITDA of BRL 10.9 billion in 2024, up 11.3% year-over-year, and adjusted net income of BRL 2.5 billion, a 19.4% increase from 2023.

• Declared BRL 987 million in dividends, a 75% increase, and raised BRL 23.3 billion to support growth and operations.

• Major expansion included acquisition of a 15% stake in Sabesp, entry into the sanitation sector, and completion of new solar parks.

• Distributed energy volumes grew 7.3% despite a high comparison base, and investments totaled BRL 8.9 billion, focused on network improvements and concession expansion.

• Service quality improved, with reductions in DEC and FEC in key regions and regulatory compliance in losses for five consecutive quarters.

Financial highlights

• Q4 2024 adjusted EBITDA reached BRL 3.2 billion, up 16.2% year-over-year, driven by distribution segment performance.

• Available liquidity increased by 26.7% sequentially, reaching BRL 13.7 billion.

• Recorded tax gains of BRL 837 million from tax credits and recoveries.

• Net operating revenue increased 12.2% year-over-year to BRL 12.6 billion in Q4 2024.

• Consolidated investments reached BRL 8.9 billion in 2024, with BRL 2.7 billion in Q4 2024.

Outlook and guidance

• Remain proactive in leverage management, seeking gains through financial and inorganic actions.

• Plan to diversify funding instruments, extend maturities, and secure CapEx financing.

• Investment acceleration plan continues to meet quality indicators and market growth in 2025.

• Ongoing periodic tariff review for Maranhão and evaluation of future capital allocation opportunities.

• Expectation to appropriate part of the tax credits generated in Q4 2024 throughout 2025.