Eletrobrás (ELET3) investor relations material

Executive summary

• Completed a multi-year turnaround, transitioning to sustainable growth with consistent liability reduction, resumed investments, and a cultural shift toward value creation and ownership, including rebranding to AXIA Energia.

• Achieved significant reduction in liabilities, including compulsory loans and PMSO, with AI-driven efficiency gains and a 32% workforce reduction since 2022.

• Completed divestment of thermal power plants and Eletronuclear, resulting in a 100% renewable portfolio and supporting Net Zero 2030 commitment.

• Launched employee stock purchase program, with 22% participation and 1,644 new shareholders, reinforcing alignment with long-term strategy.

• Achieved A-list status in CDP, inclusion in S&P Global’s Sustainability Yearbook 2026, and developed a digital GHG calculator.

Financial highlights

• Adjusted net income reached R$ 1,251 million in 4Q25, up 141% year-over-year, driven by cost reductions and non-recurring tax asset recognition.

• Investments totaled R$ 3,869 million in 4Q25, up 28% year-over-year, with 63% allocated to transmission.

• Regulatory EBITDA increased 17.1% year-over-year to R$ 6,373 million, with adjusted regulatory EBITDA margin improving due to higher generation contribution and lower PMSO costs.

• Record dividends of R$ 8.3 billion and a R$ 30 billion stock bonus were distributed, with a R$ 4.3 billion dividend payment in December 2025.

• Net debt rose to R$ 46,484 million, up R$ 8,814 million year-over-year, reflecting higher gross debt and dividend payments.

Outlook and guidance

• Investment levels projected to rise to R$ 12–14 billion annually for 2026–2027, with 224 large-scale transmission projects under implementation and a focus on renewables and operational efficiency.

• Ongoing portfolio optimization, expansion into AI and IoT, and continued participation in capacity, battery, and transmission auctions.

• Disciplined capital allocation balancing dividends, buybacks, and new investments over a five-year horizon.