Transmissora Aliança de Energia Elétrica (TAEE11) Q2 2025 earnings summary

Executive summary

• Achieved 8.7% growth in operational RAP for the 2025-2026 cycle, reaching R$4.4 billion, driven by new projects, inflation adjustments, and early energization of Pitiguari and Novatrans projects.

• Regulatory net income for 2Q25 was R$299.4 million, up 1.8% year-over-year, with IFRS net income at R$510 million (+26.5% y/y); 6M25 IFRS net income reached R$875.2 million (+12.5% y/y).

• High operational performance with a 99.94% availability rate and a 75% reduction in variable portion (VP) costs.

• Strong focus on ESG, diversity, and innovation, including AI-driven monitoring, drone inspections, and diversity targets.

• Significant fundraising through debenture issuances, including green bonds, totaling R$1.45 billion, supporting CAPEX and refinancing.

Financial highlights

• Recurring regulatory EBITDA for H1 2025 was R$1.031 billion, up 7.2% year-over-year, with an 84.6% margin.

• IFRS net revenues for 2Q25 were R$1,261.8 million (+38.5% y/y); 6M25: R$2,244.7 million (+36.8% y/y).

• CAPEX reached R$747.7 million in 6M25, up 105% year-over-year, reflecting accelerated project delivery.

• Net debt at 2Q25 was R$9,506.3 million, with leverage stable at 4.1x and an average debt cost of 5.52%.

• Cash position at mid-year was R$902.3 million (+11.7% q/q).

Outlook and guidance

• Expecting total CAPEX of R$1.6–1.8 billion for 2025-2027, with new projects and reinforcements to add R$490.7 million in RAP upon completion.

• Saíra and Tangará projects progressing ahead of deadlines; Ananaí delayed by environmental licensing.

• Continued focus on efficiency, cost control, and innovation to sustain margins and cash generation.

• Preparing to participate in upcoming transmission auctions for further growth.