ISA Energía Brasil (ISAE4) Q1 2026 earnings summary

Executive summary

• Net revenue for Q1 2026 rose 8.3% year-over-year to R$1.2 billion, with EBITDA up 10.6% to R$1 billion and net income increasing 6% to R$357.7 million, driven by tariff adjustments and new project energizations.

• Investments totaled R$1.22 billion in Q1 2026, up 10.3% year-over-year, with a focus on greenfield and retrofitting projects.

• Asset portfolio optimization included an asset swap with Axia Energia, consolidation of IE Madeira, and divestment from IE Garanhuns.

• Major operational milestones included early energization of Piraquê Block 2, 17 months ahead of schedule, and significant progress in sustainable growth strategies.

• The company operates 34 concession contracts, covering 23,000 km of lines and 134 substations, transmitting 30% of Brazil's energy.

Financial highlights

• Net operating revenue excluding RPSC/RBSE grew 24% year-over-year, driven by new project connections and RAP adjustments.

• EBITDA margin improved to 83.3%, with EBITDA reaching R$1.02 billion.

• Net income rose 6% to R$357.7 million, while IFRS net income was R$609.1 million, down 14.6% YoY due to accounting differences.

• Gross debt stood at R$16.3 billion, with net debt at R$15.4 billion and a net debt/EBITDA ratio of 3.72x.

• Dividend yield for 2025 was 10.3%, with a 75% payout ratio.

Outlook and guidance

• Remaining CAPEX for greenfield projects through 2028 is estimated at R$5.0 billion, with an authorized investment pipeline of R$12 billion through 2033.

• Focus remains on profitable, value-generating projects, maintaining financial discipline and a 75% payout of regulatory net income.

• Anticipated opportunities in energy transition, batteries, and transmission auctions, with regulatory changes expected to impact future results.