Transmissora Aliança de Energia Elétrica (TAEE11) Q2 2025 earnings summary

Executive summary

• Achieved 8.7% growth in operational RAP for the 2025-2026 cycle, reaching R$4.4 billion, driven by new projects, inflation adjustments, and early energization of Pitiguari nearly two years ahead of schedule.

• Regulatory net income for 2Q25 was R$299.4 million, up 1.8% year-over-year; 6M25 net income reached R$487.7 million, up 0.9%.

• High operational performance with a 99.94% availability rate and a 75% reduction in variable portion (VP) costs.

• Early completion of major projects, notably Pitiguari and Novatrans, delivered ahead of regulatory deadlines.

• Strong focus on ESG, diversity, and innovation, including AI-driven monitoring, drone inspections, and sustainability initiatives.

Financial highlights

• Recurring regulatory EBITDA for H1 2025 was R$1,031.4 million, up 7.2% year-over-year, with an 84.6% margin.

• IFRS net income for 6M25 was R$875.2 million, a 12.5% increase year-over-year; 2Q25 IFRS net income was R$510 million, up 26.5%.

• CapEx reached R$747.7 million in 6M25, up 105% year-over-year, reflecting accelerated project delivery.

• Net debt at 2Q25 was R$9,506.3 million, with leverage stable at 4.1x and an average debt cost of 5.52%.

• Cash position at mid-year was R$902.3 million, up 11.7% quarter-over-quarter.

Outlook and guidance

• Expecting total CapEx of R$1.6–1.8 billion for 2025, with R$400–600 million in 2026 and R$100–200 million in 2027.

• New projects under construction to add R$436 million in RAP upon completion, with three greenfield projects and four reinforcements expected to energize in the cycle.

• Saíra and Tangará projects progressing ahead of ANEEL deadlines; Ananaí delayed by environmental licensing.

• Continued focus on efficiency, cost control, and innovation to sustain margins and cash generation.

• Preparing to participate in upcoming transmission auctions for further growth.