Energisa (ENGI3) Q4 2025 earnings summary

Executive summary

• Recurring adjusted EBITDA grew 9.5% year-over-year to BRL 8.2 billion, with strong cost discipline, operational efficiency, and investment capacity maintained despite a challenging macroeconomic environment.

• Net income for 2025 rose 9.5% to BRL 2.065 billion, with a decade-long CAGR of 23.6% in net income.

• Strategic investments and disciplined growth supported expansion across electricity, gas, and renewables, with significant advances in natural gas, biomethane, and distributed generation.

• Record annual dividends and total shareholder return since re-IPO exceeds 260%, with ENGI11 units appreciating 42.2% in 2025.

• Expanded from a regional operator to serving 97% of Brazil, reaching over 20 million people and broadening energy solutions.

Financial highlights

• Recurring adjusted EBITDA for 2025 was BRL 8.2 billion, up 9.5% year-over-year; Q4 2025 recurring adjusted EBITDA was BRL 2.3 billion, up 21.7% year-over-year.

• Consolidated adjusted recurring net income was BRL 2.065 billion (+9.5% YoY); Q4 2025 net income was BRL 806 million, up 151%.

• Adjusted net revenue for 2025 was BRL 48.7 billion, up 5.3% year-over-year; consolidated net revenue (ex-construction) was BRL 29.1 billion, up 7.3%.

• Consolidated PMSO decreased 6.1% in Q4 and 1.7% for the year, below inflation, indicating real efficiency gains.

• Net debt at year-end was BRL 32.8 billion with leverage at 3.6x; average debt maturity was 6.6 years.

Outlook and guidance

• 2026 investment plan set at BRL 7.1 billion, a 7% increase, with 90% allocated to electricity distribution.

• Renewals of key distribution concessions extend cash flow visibility and support a new investment cycle.

• Natural gas and biomethane seen as long-term growth frontiers, with new plants and infrastructure expansion planned.

• Continued focus on grid modernization, regulatory compliance, ESG, and disciplined capital allocation.

• ES Gás expects 16% higher investments in 2026, focusing on infrastructure and customer growth.