ISA Energía Brasil (ISAE4) Q4 2025 earnings summary

Executive summary

• Achieved record annual investments exceeding BRL 5 billion in 2025, up 40% year-over-year, focusing on energy transition, retrofitting, and greenfield projects.

• Advanced and energized major greenfield projects, including Riacho Grande and Piraquê, ahead of schedule, adding over BRL 205 million in RAP/AAR.

• Expanded transmission network to over 23,000 km and increased installed capacity by 2,285.75 MVA, supporting grid reliability and renewables integration.

• Maintained a disciplined strategy balancing growth, financial discipline, and consistent shareholder returns, distributing BRL 1,219 million with a 75% payout ratio.

• Launched ISA 2040 Strategy and formalized Net Zero 2050 commitment, advancing sustainability and innovation.

Financial highlights

• Regulatory net revenue for 2025 was BRL 4,353.6 million, down 4.5% year-over-year, mainly due to lower RBSE and sector charges, partially offset by RAP/AAR adjustments and new projects.

• EBITDA for 2025 was BRL 3,455.3 million, down 2.4% year-over-year; Q4 2025 EBITDA rose 8% to BRL 854 million.

• Net income for 2025 was BRL 1,625.8 million, down 21.7% year-over-year, impacted by higher depreciation, financial costs, and new tax rules.

• IFRS net revenue for 2025 was BRL 9,411.2 million (+18.1% YoY); IFRS net income was BRL 2,447.9 million (-30.0% YoY).

• CapEx (ex-M&A) for 2025 reached BRL 5,103.6 million (+40.4% YoY), with BRL 1,698.8 million invested in Q4 2025 (+31.6% YoY).

Outlook and guidance

• Investment plans for 2026–2030 focus on greenfield and retrofitting projects, targeting sustainable infrastructure modernization, with authorized R&I portfolio totaling BRL 6.3 billion.

• Four greenfield projects under construction with remaining investment of ~BRL 6.0 billion and AAR for 2025/2026 cycle of BRL 929.2 million.

• AAR for the 2025/2026 cycle set at BRL 6,372.74 million, with 56% from renewed contracts and 44% from auctioned contracts.

• Commitment to distribute at least 75% of regulatory net profit as dividends remains unchanged.