Transmissora Aliança de Energia Elétrica (TAEE11) Q1 2025 earnings summary

Executive summary

• Regulatory net revenues rose 3.8% year-over-year to R$597.9 million, driven by inflationary adjustments, new project energizations, and reinforcements such as Novatrans and Pitiguari; regulatory net income was R$188.3 million, down 0.7% year-over-year.

• IFRS net revenues increased 34.7% year-over-year to R$982.9 million, mainly due to higher investments and monetary restatement revenues; IFRS net income was R$365.2 million, down 2.5% year-over-year, impacted by higher financial expenses and lower implementation margins.

• EBITDA (regulatory) reached R$509.6 million (+6.9% year-over-year), with a margin of 85.2%, supported by higher revenues and cost efficiencies.

• Dividend distribution of R$188.3 million in interest on equity was approved, representing 100% of regulatory net income for the quarter, with payment scheduled for August 2025.

• Major project milestones included early energization of Novatrans reinforcements and Pitiguari, with the latter delivered 26 months ahead of schedule.

Financial highlights

• Regulatory net revenues: R$597.9 million (+3.8% year-over-year); IFRS net revenues: R$982.9 million (+34.7% year-over-year).

• Regulatory EBITDA: R$509.6 million (+6.9% year-over-year); IFRS EBITDA: R$605.1 million; regulatory EBITDA margin: 85.2%.

• Regulatory net income: R$188.3 million (-0.7% year-over-year); IFRS net income: R$365.2 million (-2.5% year-over-year).

• Net debt stood at R$9,508.4 million (+5.0% sequentially), with leverage at 4.1x regulatory EBITDA.

• CAPEX reached R$267.9 million (+247.0% year-over-year), mainly for Tangará, Saíra (phase 2), and Pitiguari.

Outlook and guidance

• Five large-scale projects under construction with ANEEL investment of R$4.5 billion and RAP of R$487.3 million; several reinforcements underway.

• Early project completions expected for Pitiguari, Tangará, Saíra, and Juruá, with CAPEX efficiency targets and EBITDA margin above 90% for new projects.

• CapEx guidance for 2025 remains R$1.6–1.8 billion for ongoing projects and reinforcements, with acceleration expected in coming quarters.

• Participation in upcoming public transmission auctions is under evaluation, with a focus on projects aligned with geographic and efficiency goals.

• Ongoing focus on efficiency, operational improvements, and early project delivery to support future revenue growth.