Neoenergia (NEOE3) Q3 2025 earnings summary

Executive summary

• Net operating revenue reached R$12,972 million in 3Q25 (+10% YoY), driven by customer base growth, higher volumes, and positive tariff adjustments.

• EBITDA rose to R$3,388 million in 3Q25 (+14% YoY), with adjusted EBITDA at R$2,804 million (+13% YoY); net income was R$924 million (+10% YoY).

• Cash EBITDA reached R$2.8 billion in 3Q25, up 13% year-over-year, and net income rose 10% to R$924 million compared to 3Q24.

• Early renewal of Neoenergia Pernambuco’s concession until 2060, with new regulatory clauses, and major industry awards for operational excellence.

• Asset rotation and investment in distribution companies remain strategic priorities, with increased stake in Corumbá HPP and ongoing partnership with GIC.

Financial highlights

• Gross margin reached R$4,556 million in 3Q25 (+10% YoY), supported by tariff adjustments and new transmission assets.

• Operating expenses rose 5.6% year-over-year in 3Q25, below inflation.

• Capex totaled R$2.6 billion in 3Q25 and R$7.6 billion year-to-date, with most allocated to distribution and transmission.

• Financial result was -R$1,512 million in 3Q25, mainly due to higher debt and CDI rates.

• Earnings per share for 9M25 was R$2.93, up from R$2.29 in 9M24.

Outlook and guidance

• Investment cycle in transmission concluding by end of 2025, with focus shifting to distribution investments in 2026.

• Deleveraging process to begin in 2026, with potential for dividend policy review as debt declines and cash flow increases.

• Regulatory assets from recent tariff adjustments in the Northeast will be offset in 2026, temporarily impacting net debt.

• No participation planned in upcoming transmission auction, maintaining disciplined capital allocation.

• Asset rotation strategy continues, including sale of a 50% stake in Itabapoana transmission line and increased stake in Corumbá HPP.