Enel Américas (ENELAM) Q1 2025 earnings summary

Executive summary

• Adjusted EBITDA rose 5% year-over-year to $1.13 billion, driven by improved hydrology in Colombia, tariff indexation in Argentina, and renewable capacity additions, though reported EBITDA fell 6.5% to $1.01 billion due to currency depreciation.

• Net income attributable to shareholders was $0.25 billion, a 32% decrease year-over-year, mainly due to discontinued operations in Peru and lower EBITDA, but only a 5% decrease when excluding these effects.

• Investments in grids increased by 11% year-over-year (excluding FX), focusing on digitalization and resilience, especially in Brazil and Argentina, despite a 35% rise in climate events.

• Renewable generation increased 23% year-over-year, with significant solar and wind capacity additions in Brazil and Colombia; installed capacity is now over 95% renewable.

• Net financial debt increased 34% from December 2024 to $2,852 million, mainly due to higher debt in Brazil and dividend payments.

Financial highlights

• Revenues for Q1 2025 were $3.28 billion, down 2.8% year-over-year, mainly due to currency devaluation in Brazil and Colombia.

• CapEx for Q1 2025 was $406 million, a 27% decrease year-over-year, reflecting completion of renewable projects and FX effects.

• Funds from operations improved 6% year-over-year to $0.47 billion, driven by lower taxes and financial expenses.

• Free cash flow was negative at $0.12 billion in Q1 2025, while adjusted free cash flow after investments was approximately $60 million.

• Cost of debt increased to 10.7%, mainly from higher interest rates in Brazil.

Outlook and guidance

• 2025 guidance for EBITDA and net income is confirmed, with no extraordinary events expected to alter projections.

• Distribution concession renewal in Brazil is progressing as planned.

• CAPEX remains aligned with the strategic plan, prioritizing grid quality and resilience.