Energisa (ENGI3) investor relations material

Executive summary

• Secured early 30-year extension of key electricity distribution concessions, covering up to 46% of group EBITDA and 62% of the net remuneration base, enhancing regulatory predictability and supporting long-term planning.

• Achieved consistent operational growth and efficiency across all business lines, with disciplined cost management and investment focus.

• Recurring adjusted EBITDA reached R$1.98 billion in Q1 2026, up 6.6% year-over-year, while recurring adjusted net income fell 47% to R$207 million compared to 1Q25.

• Net operating revenue rose 9.5% year-over-year to R$12.5 billion, with adjusted net revenue up 7.6%.

• Consolidated net income fell 44% year-over-year to R$575 million, mainly due to higher finance costs from increased net debt and higher average debt cost.

Financial highlights

• Recurring adjusted EBITDA reached R$1.98 billion (+6.6% YoY); equity-adjusted EBITDA including Norgas was R$2 billion, up 7%.

• Consolidated investments totaled up to R$1.6 billion, up 17% year-over-year, with 94% directed to energy distribution.

• Net financial expenses rose 36% to R$1.6 billion, driven by higher interest rates; net finance costs reached R$1.03 billion (+67.8% YoY) due to a 33.1% increase in net debt and higher average debt cost.

• Net debt/EBITDA ratio stood at 3.5x (pro forma 3.3x with quasi-equity injection); average debt maturity extended to 7 years.

• Dividend payments approved for subsidiaries, with Energisa Acre, Denerge, and Nova Denerge distributing a total of R$196.5 million.

Outlook and guidance

• Long-term concession extensions provide stability for future investments and operational planning, with visibility through 2057–2061 for major distribution companies.

• Tariff reviews, regulatory adjustments, and evolving quality standards expected to impact EBITDA and segment performance over coming years.

• Investment plans already incorporate anticipated concession renewals and strategic expansion in gas and transmission assets.

• ESG targets surpassed for clean electricity and thermal plant decommissioning; renewable capacity target close to completion.

• Non-distribution business lines contributed 19.2% of consolidated EBITDA, progressing toward the 25% target by 2026.