Neoenergia (NEOE3) Q2 2025 earnings summary

Executive summary

• Net income doubled to R$1.6 billion in 2Q25, driven by R$869 million in tax credits and operational improvements.

• Cash EBITDA rose 7% to R$2.6 billion, with networks contributing R$2.4 billion (+13% YoY).

• Injected energy grew 2.3% year-over-year, reflecting customer growth and distributed generation.

• Asset rotation advanced with the sale of Baixo Iguaçu HPP, generating over R$1.1 billion in cash.

• Regulatory confidence reinforced by early renewal of the Pernambuco concession and ongoing partnership with GIC.

Financial highlights

• Net operating revenue reached R$12.19 billion in 2Q25 (+11% YoY), with gross margin up 7% to R$4.42 billion.

• Net income was R$1.6 billion in 2Q25 (+100% YoY), including R$869 million in tax credits; adjusted net income fell 6% YoY.

• EBITDA reached R$3.21 billion in 2Q25 (+8% YoY); cash EBITDA was R$2.6 billion (+7% YoY), with 90% from networks.

• CAPEX totaled R$2.8 billion in 2Q25, mainly for distribution and transmission expansion.

• Financial result was -R$1.38 billion in 2Q25, mainly due to higher debt and CDI rates.

Outlook and guidance

• Deleveraging underway, with net debt/EBITDA at 3.46x, targeting 3.2–3.3x by year-end and 3x in 2026.

• Focus on organic growth in distribution, with annual investments of R$7 billion planned post-2025.

• Ongoing investments in grid expansion, renewables, and digitalization; new partnerships for self-production.

• No participation in upcoming transmission auctions unless return thresholds are met.

• Awaiting renewal of Coelba, Cosern, and Elektro concessions.