ISA Energía Brasil (ISAE4) Q1 2025 earnings summary

Executive summary

• Q1 2025 focused on sustainable value creation, profitability, and supporting Brazil's energy transition, with strategy execution advancing through significant greenfield and retrofitting investments.

• Net revenue reached R$1,131.9 million, up 2.1% year-over-year, while net income fell 17.6% to R$337.4 million due to higher financial expenses and lower RBSE revenue.

• EBITDA increased 2.9% to R$923.3 million, with margin improving to 81.6%, reflecting operational efficiency.

• Investments surged 32.7% to R$1,108.0 million, driven by greenfield and retrofitting projects.

• Operates a vast transmission network in 18 states, transmitting 30% of Brazil's and 95% of São Paulo's electricity.

Financial highlights

• Net revenue (ex-RBSE) grew 18% year-over-year; total net revenue up 2.1% to R$1,131.9 million.

• EBITDA increased 2.9% to R$923.3 million, with margin at 81.6%.

• Net income fell 17.6% to R$337.4 million, mainly due to higher financial expenses.

• Joint subsidiaries' EBITDA grew 1.8% to R$165 million.

• IFRS net profit was R$713.2 million (+10.9%).

Outlook and guidance

• Six greenfield projects under construction with remaining ANEEL investment of ~R$7.5 billion and 2024/2025 RAP of R$978.7 million.

• Portfolio of authorized projects totals R$5.5 billion to be executed by 2029.

• Leverage expected to temporarily rise as investments continue, with net debt/EBITDA potentially reaching 4–5x before declining as projects go live.

• Dividend payout practice of at least 75% of regulatory net income to be maintained.