Neoenergia (NEOE3) Q2 2026 earnings summary

Executive summary

• Revenue for 2Q26 reached R$12.6 billion, down 2% year-over-year, with 1H26 at R$25.9 billion, up 3%.

• EBITDA grew 11% in 2Q26 to R$3.55 billion and 10% in 1H26 to R$7.65 billion, driven by operational efficiency, customer expansion, and new transmission assets.

• Net income attributable to controlling shareholders dropped 45% in 2Q26 to R$900 million and 17% in 1H26 to R$2.18 billion, mainly due to non-recurring tax credits in 2Q25.

• Operational highlights include a 3% increase in injected energy and 2.3% in distributed energy in 1H26.

• Early renewal of Coelba, Cosern, and Elektro concessions for 30 years was formalized in May 2026, supporting long-term stability.

Financial highlights

• Gross margin rose 5% in 2Q26 to R$4.64 billion and 3% in 1H26 to R$9.64 billion, supported by tariff adjustments and customer base growth.

• Adjusted EBITDA (excluding VNR, IFRS, and corporate operations) was R$2.74 billion in 2Q26 (+6%) and R$5.75 billion in 1H26 (+7%).

• Financial result deteriorated to -R$1.82 billion in 2Q26 and -R$3.46 billion in 1H26, reflecting higher average debt and increased IPCA.

• CAPEX totaled R$4.0 billion in 1H26, with R$3.7 billion allocated to distribution, raising the regulatory asset base to R$47.3 billion.

• Net operating revenue was R$11.84 billion in 2Q26 (-3% YoY) and R$24.37 billion in 1H26 (+3% YoY).

Outlook and guidance

• The company continues to focus on expanding its customer base, operational efficiency, and grid modernization.

• Ongoing investments in renewable energy, grid resilience, and sustainability projects are expected to support long-term growth.

• Debt/EBITDA ratio increased to 3.48x in 2Q26 from 3.41x in 4Q25, with 87% of debt long-term.

• S&P corporate rating remains AAA.

• Concession renewals for Coelba, Cosern, and Elektro extend operations by 30 years.