Transmissora Aliança de Energia Elétrica (TAEE11) Q1 2026 earnings summary

Executive summary

• Achieved strong financial and operational results in Q1 2026, with regulatory net revenues up 9.6% to R$655.5 million, driven by new project energizations and reinforcements, and high operational availability at 99.95%.

• Regulatory EBITDA rose 10.3% to R$562.1 million (margin 85.8%), and regulatory net income reached R$192.6 million, up 2.3% year-over-year.

• IFRS net income was R$353.6 million, down 3.2% year-over-year, mainly due to lower inflation adjustment revenue and higher finance costs.

• Major Greenfield projects (Tangará, Saíra) advanced ahead of schedule, contributing significant RAP additions and early deliveries.

• Distributed 100% of regulatory net income as dividends, reinforcing commitment to shareholder value.

Financial highlights

• Regulatory net revenues: R$655.5 million (+9.6% vs. 1Q25); regulatory EBITDA: R$562.1 million (+10.3% vs. 1Q25, margin 85.8%).

• IFRS net income: R$353.6 million (-3.2% vs. 1Q25); IFRS net revenues: R$1,037.4 million (+5.5% vs. 1Q25).

• Investments reached R$312.2 million in Q1, up 16.6% from Q1 2025, reflecting project progress.

• Operating cash generation increased 24% year-over-year, supporting investment and financial balance.

• Net debt at R$12.8 billion, leverage at 4.2x net debt to regulatory EBITDA.

Outlook and guidance

• Leverage expected to decline below 4x as major projects complete in the first half of the year.

• Focus on energizing ongoing projects and reinforcements, with continued investment in critical assets and predictive maintenance.

• Four greenfield projects under development with ANEEL investment of R$4.3 billion and RAP of R$490.7 million for 2025-2026.

• Ongoing monitoring of market conditions, especially interest rates, to guide dividend and leverage strategy.

• Additional RAP from new and enhanced projects is expected to support future revenue growth.