Light (LIGT3) Q4 2025 earnings summary

Executive summary

• Completed a major transformation in 2025, emerging from Judicial Reorganization with stronger fundamentals, improved debt structure, and best service quality in recent history.

• Achieved record operational efficiency and quality indicators, including a 60% reduction in Average Emergency Service Time over four years and a 42% year-over-year improvement in 2025.

• Disco segment fundamentals improved, with lowest legal contingencies in seven years and delinquency declining due to assertive management.

• Net revenue for 2025 was R$14.99 billion, with profit at R$213.1 million, down from R$1.64 billion in 2024.

• Generation and Trading segment faced adverse hydrological conditions in 2H25 but ended with a solid contractual position for 2026.

Financial highlights

• Consolidated Adjusted EBITDA in 4Q25 was R$418 million (+7.2% YoY); full-year Adjusted EBITDA was R$1.83 billion (-11.5% YoY).

• Net loss in 4Q25 was R$187 million, mainly due to negative net financial result and deferred tax pressure.

• Capex in 4Q25 was R$489 million (+38.0% YoY), totaling R$1.68 billion for 2025 (+57.8% YoY).

• Cash and equivalents at year-end were R$1.75 billion (-43.5% YoY); proforma net debt was R$6.25 billion (+21.9% YoY).

• Net cash from operating activities was R$375.5 million in 2025, down from R$2.15 billion in 2024.

Outlook and guidance

• 2026 outlook centers on signing the new SESA Concession Agreement, enabling a capital increase and new investment cycle.

• Management expects continued operations as a going concern, with no significant doubt for at least 12 months.

• Pending completion of capital increase and mandatory conversion of convertible securities, contingent on concession renewal.

• If concession renewal is not granted, financial settlement of borrowings will be required.

• Generation and Trading segment positioned to capture upside from short-term price movements due to uncontracted energy portion.