Light (LIGT3) Q2 2025 earnings summary

Executive summary

• Net income reached R$368 million in H1 2025, reversing a prior year loss of R$409 million, driven by improved financial results and debt restructuring.

• Achieved consolidated net revenue of R$7.2 billion for the six months ended June 30, 2025, up 2.2% year-over-year.

• Completed main actions of the court-supervised reorganization plan, including substantial debt restructuring, capital increase, and formalization of new securities.

• Progressed toward signing a new distribution concession contract, with extension for 30 years under review by authorities, enabling a private capital increase and mandatory debt conversion.

• Achieved best-ever FEC and near-record DEC, both outperforming regulatory limits despite a 30% rise in emergencies.

Financial highlights

• Consolidated net revenue: R$7.2 billion in H1 2025 (up 2.2% YoY); net profit: R$368 million, reversing a R$409 million loss in H1 2024.

• Cash and cash equivalents at R$3.2 billion, up R$87 million from December 2024; marketable securities at R$3.02 billion.

• Net debt reduced to R$4.4 billion (-54% YoY), with consolidated net debt/shareholders' equity at 53.5%.

• Adjusted EBITDA for energy generation and commercialization reached R$242 million by June, excluding positive mark-to-market effects of R$138 million.

• Distribution company achieved R$160 million net profit year to date.

Outlook and guidance

• Anticipates signing a new distribution concession contract, enabling a private capital increase of up to R$1.5 billion and conversion of R$2.2 million in convertible debt.

• Management asserts no material uncertainty regarding going concern for at least 12 months, contingent on the successful extension of the distribution concession.

• Regulatory and legal actions continue to mitigate non-technical losses and secure favorable tax treatments.