Neoenergia (NEOE3) Q4 2025 earnings summary

Executive summary

• Achieved record net income of R$5.03 billion in 2025, up 38% year-over-year, and record CapEx of R$10.1 billion, with strong operational and financial discipline.

• Completed a major investment cycle in transmission, delivering over 8,000 km of lines and moving to 5th largest operator in Brazil.

• Won 8 out of 12 ABRADEE Awards, including best distributor in Brazil and best in several regions, reflecting operational excellence.

• Major asset rotation included divestments in Dardanelos and Baixo Iguaçu, increased stake in Corumbá HPP, and partnership with GIC on transmission assets.

• Customer base grew to 17 million, with all five distributors within regulatory quality limits for DEC and FEC.

Financial highlights

• Net income reached R$1.5 billion in 4Q25 (+73% vs. 4Q24) and R$5.03 billion in 2025 (+38% vs. 2024).

• Cash EBITDA was R$3.2 billion in 4Q25 (+14% vs. 4Q24) and R$11.4 billion in 2025 (+8% vs. 2024).

• Gross margin in Q4 grew 7% year-over-year to R$6,066 million, with operating expenses down 7% to R$1,051 million.

• CapEx for 2025 was R$10.1 billion, with R$2.5 billion invested in 4Q25, mainly in distribution and transmission.

• Net operating revenue was R$50.1 billion (+7% YoY); financial result was -R$5.81 billion, reflecting higher debt and CDI rates.

Outlook and guidance

• Focus on operational efficiency, customer-centric investments, and disciplined capital allocation.

• Continued asset rotation, expansion in renewables and transmission, and ongoing concession renewals.

• Ongoing pursuit of opportunities in new segments and technologies, with strengthened ESG commitments.