Equatorial Energia (EQTL3) Q1 2026 earnings summary

Executive summary

• Adjusted consolidated EBITDA rose 11.3% year-over-year to R$2.9 billion, driven by distribution, equity income from SABESP, and operational improvements.

• Net operating revenues increased 12% to R$12.75 billion, with margin expansion in key distribution subsidiaries.

• Investments totaled R$2.6 billion, up 12.2% year-over-year, focused on distribution and innovation projects.

• Early buyback of Class A and B preferred stock for R$607 million, leaving only Class C outstanding.

• Concession renewals secured for Maranhão (2060) and Pará (2058), ensuring long-term stability.

Financial highlights

• Net revenue reached R$12.75 billion (+12% YoY); adjusted EBITDA R$2.9 billion (+11.3% YoY); net income R$424 million; adjusted net income R$359 million (-23.6% YoY) due to higher financial expenses.

• EBITDA margin stable at 22.6%; adjusted gross margin up 13% to R$4.35 billion, mainly from distribution.

• Net debt/EBITDA improved to 2.7x; cash position at R$11.6 billion, 2.5x short-term debt.

• Investments mainly in distribution assets; dividend distribution and capital increase approved.

• Compensation payments reduced by 23.4% year-over-year due to service quality improvements.

Outlook and guidance

• Management expects further EBITDA expansion with upcoming tariff reviews, continued investment, and operational improvements.

• Comfortable leverage position expected to improve as EBITDA grows and interest rates remain high.

• Focus on regulatory compliance, operational resilience, and ESG initiatives.