Transmissora Aliança de Energia Elétrica (TAEE11) Q4 2024 earnings summary

Executive summary

• IFRS net income for 2024 reached R$1.7 billion, up 23.8% year-over-year, driven by IGP-M recovery and monetary correction revenues.

• Recurring regulatory EBITDA for 2024 was R$1.95 billion with an 83% margin, stable versus 2023.

• Major investments in technology, people, and ESG initiatives supported operational efficiency, innovation, and sustainability.

• Energization milestones achieved ahead of schedule for Novatrans reinforcements and Pitiguari project.

• Maintained strong stakeholder relationships, ethics, and safety, with recognition for diversity and inclusion.

Financial highlights

• 2024 regulatory net income was R$991.5 million, down 7.5% year-over-year, mainly due to non-recurring provision reviews and inventory assessments.

• Recurring regulatory EBITDA for 2024 was R$1.95 billion with an 83% margin; Q4 recurring regulatory EBITDA was R$480 million, up 0.8% year-over-year.

• IFRS net revenues for 2024 were R$3,718.1 million, up 10.6% year-over-year.

• Dividend distribution for 2024 proposed at R$900.1 million, equivalent to 90.8%–91% of regulatory net income.

• 2024 CAPEX was R$1,035.4 million, reflecting project completions and lower indemnity payments.

Outlook and guidance

• Over R$2 billion in investments planned for the next three years, with 2025 CapEx expected between R$1.6–1.8 billion.

• Expecting a sharp increase in RAP of about 9% in 2025 due to IGP-M recovery.

• Deleveraging expected to begin in 2026 as ongoing projects contribute to cash flow.

• Focus remains on operational efficiency, innovation, ESG, and domestic market opportunities.

• Strategic expansion with the acquisition of Lot 3 in ANEEL's 2024 auction, targeting high-demand regions.