Alupar Investimento (ALUP11) Q1 2025 earnings summary

Executive summary

• IFRS net revenues rose 22.8% year-over-year to BRL 1,223.7 million, driven by transmission and generation segments, with EBITDA up 14.9% to BRL 932.5 million and net profit up 17.2% to BRL 298.8 million.

• Regulatory net revenues increased 8.3% to BRL 857.5 million, while regulatory net profit declined 9.0% to BRL 140.1 million.

• Dividend distributions approved: BRL 69.2 million for 1Q25 (52% payout), and BRL 275.7 million for 2024, with a stock bonus of 4% (38 million new shares, BRL 349.5 million) delivered in April 2025.

• Major transmission projects advanced, including 551km of new lines, substation upgrades, and the incorporation of TAP by TECP.

• Investments totaled BRL 172.5 million in 1Q25, mainly allocated to transmission projects under implementation.

Financial highlights

• IFRS net revenues: BRL 1,223.7 million (+22.8% YoY); IFRS EBITDA: BRL 932.5 million (+14.9% YoY), margin 76.2%; IFRS net profit: BRL 298.8 million (+17.2% YoY).

• Regulatory net revenues: BRL 857.5 million (+8.3% YoY); regulatory net profit: BRL 140.1 million (-9.0% YoY); regulatory EBITDA margin: 80.0%.

• Net debt: BRL 8,909.4 million; net debt/EBITDA improved to 2.8x from 3.5x YoY.

• Dividend payout for 2024 approved at BRL 275.7 million, with BRL 76.1 million remaining to be paid by June 2025.

• Market capitalization as of May 8, 2025: BRL 9,826.2 million; average daily trading volume YTD: BRL 27.8 million, up 7.3% YoY.

Outlook and guidance

• Fewer transmission project opportunities expected in Brazil and Latin America for 2025, but market growth anticipated due to renewables and grid reinforcement needs.

• Ongoing investments in transmission projects, with several in advanced implementation or near completion.

• Open to new investments if attractive opportunities arise, though not currently in planning.

• Generation segment faces short-term challenges from curtailment and containment, but regulatory changes and market opening seen as positive for long-term growth.

• Management highlights value creation opportunities through existing assets and ongoing capital structure optimization.