Equatorial Energia (EQTL3) Q4 2025 earnings summary

Executive summary

• Adjusted EBITDA reached R$12.2 billion in 2025, up 11.6% year-over-year, with same-assets EBITDA up 14.3%.

• Investments totaled R$11 billion, a 23.5% increase year-over-year, focused on network expansion, modernization, and innovation.

• Net income attributable to shareholders was R$2.5 billion, a 34% decrease year-over-year, impacted by higher financial expenses and impairment charges.

• Major portfolio event: sale of transmission assets, generating a capital gain of R$2.2 billion and reclassifying results as discontinued operations.

• Dividend and JCP distributions totaled R$1.99 billion, with a payout of 185%.

Financial highlights

• Q4 2025 adjusted EBITDA was R$3.5 billion, up 10.5% from Q4 2024; annual same-assets EBITDA grew 20%.

• Net revenue reached R$52.1 billion (+19% YoY); gross margin was R$13.6 billion (+18% YoY).

• Net leverage (net debt/EBITDA) reduced to 2.6x post-transmission sale; would be 3.0x excluding the gain.

• Cash and equivalents at R$11.2 billion, covering 2.5x short-term debt.

• Adjusted net income for Q4 2025 was R$802 million, down 20% due to higher depreciation, financial expenses, and non-recurring provisions.

Outlook and guidance

• Focus on infrastructure expansion, service quality improvement, and loss reduction to meet growing demand.

• Regulatory approvals for 30-year extension of Maranhão and Pará concessions, supporting investment predictability.

• Ongoing regulatory reviews and updates to price banks anticipated by ANEEL.

• Asset recycling and balance sheet flexibility prioritized to capture future market opportunities.

• SUDAM tax benefits for Equatorial Pará extended through 2034.