Equatorial Energia (EQTL3) Q4 2024 earnings summary

Executive summary

• Consolidated net revenue reached R$45.4 billion in 2024, up 10.7% year-over-year, driven by higher energy demand and tariff adjustments.

• Adjusted consolidated EBITDA reached R$11.4 billion in 2024, up 12.9% year-over-year, and adjusted net income rose 31% to R$3.77 billion, supported by revenue growth and cost control.

• Declared dividends totaled R$987 million, a 75% increase, and a major capital increase of R$3.16 billion supported growth.

• Expanded multi-utility platform with the acquisition of a 15% stake in SABESP and completion of two major solar parks.

• Divested transmission assets, including SPE 7 and Intesa, as part of asset recycling initiatives.

Financial highlights

• Q4 2024 adjusted EBITDA reached R$3.2 billion, up 16.2% year-over-year, with margin rising to 25.4%.

• Net operating revenue for Q4 2024 was R$12.6 billion, up 12.2% year-over-year.

• Investments totaled R$8.9 billion in 2024, with R$2.7 billion in Q4.

• Available liquidity increased to R$13.7 billion, and net debt/EBITDA covenant ratio was 3.3x.

• Dividend payout was R$987 million (37% of adjusted net income).

Outlook and guidance

• Focus on operational excellence, leverage management, funding optimization, and sustainable growth.

• Continued investment in network expansion, digitalization, and ESG initiatives.

• Ongoing integration of SABESP stake and pursuit of further opportunities in sanitation.

• Periodic tariff reviews and evaluation of future capital allocation opportunities.

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