ISA Energía Brasil (ISAE4) Q4 2025 earnings summary

Executive summary

• Achieved record annual investments exceeding R$5.1 billion in 2025, up 40% year-over-year, focusing on energy transition, greenfield, and retrofitting projects, and expanding the transmission network to over 23,000 km and 84,910 MVA.

• Energized major projects (Água Vermelha, Riacho Grande, Piraquê block 1) ahead of schedule, adding over R$204.5 million in new RAP/AAR for 2025/2026.

• Launched the 2040 Strategy and formalized Net Zero 2050 commitment, emphasizing sustainability, innovation, and resilient infrastructure.

• Distributed R$1,219 million to shareholders, maintaining a 75% payout ratio.

• Recorded two contractor fatalities in 2025, prompting immediate safety protocol reviews and reinforced prevention measures.

Financial highlights

• IFRS net operating income grew 18.1% year-over-year to R$9,411.2 million; IFRS profit was R$2,477.9 million for 2025.

• Regulatory net revenue for 2025 was R$4,353.6 million (-4.5% YoY); regulatory profit was R$1,625.8 million (-21.7% YoY).

• EBITDA for 2025 was R$3,455.3 million (-2.4% YoY); EBITDA margin for 4Q25 was 76.2%.

• Net debt at year-end was R$14,127.9 million (+38.1% YoY); gross debt reached R$16,007.3 million.

• Dividend and interest on capital payments totaled R$1,701.3 million in 2025.

Outlook and guidance

• Four major projects under construction with remaining investment of ~R$6.0 billion and AAR for the 2025/2026 cycle of R$929.2 million.

• Authorized R&I project portfolio totals R$6.3 billion to be executed through 2030.

• Regulatory environment remains stable, with two transmission auctions scheduled for 2026 and new capacity reserve auctions for batteries.

• Fitch affirmed AAA (bra) rating with a stable outlook, noting predictable income and higher leverage due to investment cycle.