Neoenergia (NEOE3) Q1 2026 earnings summary

Executive summary

• Net operating revenue reached R$12,526 million in 1Q26, up 10% year-over-year, driven by tariff adjustments and customer base growth.

• EBITDA rose 10% to R$4,097 million, with adjusted EBITDA up 8% to R$3,009 million, reflecting operational improvements and new transmission assets.

• Net income attributable to controlling shareholders increased 28% to R$1,284 million, supported by positive equity income, operational gains, and new transmission assets.

• Significant asset rotation included the sale of Baixo Iguaçu and Dardanelos, and acquisition of control in Corumbá III, impacting segment results.

• Iberdrola acquired 14.21% of shares in a tender offer, increasing its stake and triggering a move to delist from B3's Novo Mercado.

Financial highlights

• Gross margin was R$5,008 million, stable year-over-year, with a 4% increase excluding concession financial assets.

• Operating expenses increased 7% to R$1,142 million, mainly due to higher collection and legal provision costs.

• Financial result was a loss of R$1,640 million, 5% higher than 1Q25, reflecting increased debt for Capex funding.

• CAPEX totaled R$1.8 billion, with R$1.7 billion allocated to distribution and R$138 million to transmission, raising the regulatory asset base to R$45.6 billion.

• Total injected energy grew 1.9% and distributed energy rose 2.1% year-over-year.

Outlook and guidance

• Concessions for Neoenergia, Coelba, Cosern, and Elektro were renewed for 30 years, ensuring long-term operational stability.

• Tariff readjustments for Coelba, Cosern, and Pernambuco approved in April 2026, with average effects for consumers between 4.25% and 5.85%.

• Asset rotation strategy continues, with the sale of EAPSA and changes in transmission business structure.