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

Executive summary

• Celebrated 15 years with a focus on efficiency, innovation, and sustainability, achieving high operational reliability with a 99.7% line availability index in 2024.

• Major organizational restructuring, process reviews, and technology investments supported sustainable growth and adaptation to energy transition demands.

• Five large projects and seven major reinforcements are under construction, with significant early energization milestones for Novatrans and Pitiguari.

• Advanced ESG initiatives, diversity, and inclusion, maintaining Great Place to Work certification for the sixth consecutive year.

• Dividend payout for 2024 set at R$900.1 million, representing 90.8%–91% of regulatory net income.

Financial highlights

• IFRS net income for 2024 reached R$1,693.9 million, up 23.9% year-over-year, driven by IGP-M recovery and monetary correction revenues.

• Regulatory net income for 2024 was R$991.5 million, down 7.5% year-over-year, impacted by non-recurring events.

• Adjusted EBITDA for 2024 was R$2,223.9 million, up 15.6% year-over-year, with a margin of 59.8%.

• Recurring regulatory EBITDA was R$1.95 billion for 2024, margin 83%, flat year-on-year.

• Net operating revenue reached R$3,718.1 million, up 10.6% year-over-year.

Outlook and guidance

• Over R$2 billion in CapEx planned for the next three years for ongoing and new projects.

• Revenue growth expected in 2025, supported by project completions and anticipated RAP increase of about 9% due to IGP-M.

• Continued focus on operational efficiency, innovation, and ESG practices to support sustainable growth.

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

• Leverage expected to rise slightly in 2025, then decrease from 2026 as new projects contribute to cash flow.