ISA Energía Brasil (ISAE4) Q2 2026 earnings summary

Executive summary

• Net revenue rose 20.9% year-over-year in 2Q26 to R$1,243.4 million, driven by tariff adjustments and new project energizations, while EBITDA increased 22.5% to R$966.9 million with margin improving to 77.8%.

• Net income fell 32% to R$173.9 million in 2Q26, mainly due to higher financial expenses and the absence of non-recurring tax credits.

• Major greenfield projects (Jacarandá and Piraquê) were energized, boosting allowed annual revenue (AAR) by R$376 million.

• Completed a primary public offering of 44.4 million preferred shares, raising R$1.2 billion to strengthen capital structure and support growth.

• Finalized unwinding of cross-shareholdings with AXIA Energia, leading to full consolidation of IE Madeira and divestment from IE Garanhuns.

Financial highlights

• Net revenue reached R$1,243.4 million in 2Q26 (+20.9% YoY); 1H26: R$2,469.6 million (+14.3%).

• EBITDA: R$966.9 million in 2Q26 (+22.5% YoY); 1H26: R$1,988.1 million (+16.1%).

• Net income: R$173.9 million in 2Q26 (-32.0% YoY); 1H26: R$531.6 million (-10.4%).

• Net debt: R$16,289.9 million (+27.0% YoY); Net Debt/EBITDA: 3.78x as of 2Q26.

• CapEx: R$1,053.5 million in 2Q26 (-4.4% YoY); 1H26: R$2,275.9 million (+3.0%).

Outlook and guidance

• AAR for the 2026/2027 cycle set at R$7,082 million after asset swap, up 11.1% from the previous cycle.

• Ongoing investments in greenfield and retrofitting projects, with a R$7.2 billion authorized R&I portfolio.

• Focus on operational efficiency, sustainability, and expanding renewable energy corridors.