Serena Energia (SRNA3) Q2 2025 earnings summary

Executive summary

• Energy production reached 2,365 GWh in 2Q25, up 2% year-over-year, with Delta Cluster output surging 66.4% YoY due to strong wind resources and operational improvements; potential production was 2,621 GWh absent curtailment and underplan availability impacts.

• Energy Gross Profit for 2Q25 was R$588.5 million, up 16% YoY, driven by new contracts and record energy platform performance.

• Adjusted EBITDA for 2Q25 was R$421.6 million, a 26% increase YoY, supported by higher gross profit and tight expense control.

• Net income improved by R$37 million YoY, though remained negative at -R$60.6 million; recurring cash flow increased 34% YoY to R$375.5 million.

• Interim financials for 1H25 show a consolidated net loss of R$190 million, reversing a profit of R$33 million in the same period last year.

Financial highlights

• Net revenues for 2Q25 were R$1,461.7 million, up 92% YoY; energy gross profit increased 23% YoY to R$635.9 million.

• Adjusted EBITDA margin reached 71.6% in 2Q25, up 5 p.p. YoY; adjusted net income loss narrowed to -R$60.6 million from -R$97.6 million YoY.

• Net debt/EBITDA (operational arm) at 3.3x, well below the 4.5x covenant; total net debt at R$8.61 billion.

• Cash and cash equivalents at period end were R$1.01 billion, down from R$1.43 billion at December 31, 2024.

• Recurring free cash flow for 2Q25 was R$375.5 million, up 34% YoY, with EBITDA to FCF conversion at 89%.

Outlook and guidance

• 60% of annual performance is typically concentrated in the second half, with favorable seasonality and energy positions expected to support full-year results.

• Curtailment risk remains, with budgeted losses of approximately R$30 million for 2H25; management anticipates possible regulatory or judicial solutions.

• Distributed Generation projects are expected to deliver R$75–85 million in full-year EBITDA by 2026.

• Management affirms the company’s ability to continue as a going concern, citing sufficient resources and positive consolidated working capital of R$161.6 million as of June 30, 2025.