Equatorial Energia (EQTL3) Q2 2026 earnings summary

Executive summary

• Adjusted consolidated EBITDA grew 0.8% year-over-year to R$2.92 billion in 2Q26, reflecting operational discipline, robust market growth, improved gross margin, and better loss indicators, despite challenges in renewables and higher financial expenses.

• Cash and equivalents reached R$10 billion, covering 2.5x short-term debt, supporting strong liquidity.

• Acquisition of a 30% stake in Copasa for R$5.6 billion marked a strategic milestone, expanding presence in sanitation.

• R$355 million gain from the Acordo Gaúcho (ICMS tax settlement), classified as non-recurring.

• Net income attributable to controlling shareholders was R$485 million in 2Q26, with adjusted net income at R$110 million, reflecting non-recurring items and higher financial costs.

Financial highlights

• Net operating revenue rose 10.2% year-over-year to R$13.7 billion in 2Q26.

• Adjusted gross margin increased by 10.4% year-over-year, mainly due to distribution segment performance and tariff increases.

• Adjusted EBITDA margin was 21.3%, down 2.0 p.p. from 2Q25 due to higher operational costs and provisions.

• Adjusted net income dropped 83.5% year-over-year to R$110 million, mainly due to higher financial expenses and non-recurring effects.

• Investments totaled R$2.6 billion in 2Q26, a 3.8% decrease from 2Q25, mainly in distribution and special obligations.

Outlook and guidance

• Focus on integrating Copasa, operational cost discipline, and execution of a 100-day plan.

• Planned tariff reviews for CEEE-D and CEA, and ongoing regulatory agenda for distribution companies.

• Continued strict cost discipline, resource allocation, and evaluation of new business opportunities.

• Ongoing investments in distribution and ESG initiatives to support long-term value creation.