Transmissora Aliança de Energia Elétrica (TAEE11) Q3 2025 earnings summary

Executive summary

• Achieved strong financial and operational results in Q3 2025, with increased revenue, net income, and disciplined cost control despite macroeconomic pressures.

• Regulatory net revenues rose 9.8% in 3Q25, driven by new RAP cycle, project startups, and inflation adjustments.

• Regulatory EBITDA increased 12.6% in 3Q25, with recurring OPEX growth below inflation and a margin above 84%.

• IFRS net income for 3Q25 was R$340.6 million, down 16.8% year-over-year, mainly due to lower inflation adjustments and higher costs.

• Maintained high operational availability and efficiency, with a 99.93% availability index and improved variable portion performance.

Financial highlights

• Regulatory net revenue for 3Q25 reached R$650.5 million, up 9.8% year-over-year; 9M25 revenue up 7% to R$1.87 billion.

• Regulatory EBITDA for 3Q25 was R$548.8 million (+12.6% YoY); 9M25 EBITDA was R$1,580.1 million (+9.0% YoY), with an 84.5% margin.

• Regulatory net income for 3Q25 was R$323.3 million, up 5.2% YoY; 9M25 net income up 2.5% to R$811 million.

• IFRS net income for 9M25 was R$1,215.8 million, up 2.4% YoY; 3Q25 IFRS net income was R$340.6 million, down 16.8% YoY.

• CAPEX accelerated to R$1.3 billion for 9M25, up 89.8% year-over-year, mainly due to investments in new projects and reinforcements.

Outlook and guidance

• CAPEX for 2025 expected to reach R$1.6-1.8 billion, covering four greenfield projects and large-scale reinforcements.

• Additional RAP from new projects and enhancements will support future revenue.

• Early completion and CAPEX efficiency are expected for key projects, with EBITDA margins above 90% for new developments.

• Two transmission auctions anticipated in 2026, with continued focus on disciplined growth and financial stability.

• Deleveraging strategy expected to take effect from 2026, with leverage ratio projected to decline.