Alupar Investimento (ALUP11) Q2 2025 earnings summary

Executive summary

• Regulatory net income rose 43.9% year-over-year, while IFRS net profit declined 38.9% to R$144.9 million, driven by strong transmission and generation performance, project completions, and tax benefits.

• Key projects completed included the ELTE transmission line, TCE, TECP, and the acquisition of Rialma IV, expanding the asset base.

• Dividend payments for the first half of 2025 totaled R$145.3 million, with an additional R$69.2 million approved for 2Q25.

• Maintained focus on shareholder returns, project pipeline expansion, and operational efficiency across Brazil and Latin America.

Financial highlights

• IFRS net revenues reached R$1,047.1 million in 2Q25, up 9.8% year-over-year; regulatory net revenues were R$858.0 million, up 8.4%.

• IFRS EBITDA was R$600.5 million, down 23.6% year-over-year; regulatory EBITDA rose 5.5% to R$680.5 million.

• Net debt stood at R$9,036.1 million, with a net debt/EBITDA ratio of 3.0x (IFRS) and 3.4x (regulatory).

• Regulatory net profit was R$186.1 million, up 43.9% year-over-year.

• Dividend payout ratio remained above 50% for the period.

Outlook and guidance

• RAP for the 2025/26 cycle increased 11.4% to R$4,782 million, supported by indexation and new assets.

• Ongoing expansion in transmission and generation, with several projects under construction in Brazil and Latin America.

• Management is focused on value creation through asset expansion, operational efficiency, and market opportunities in Latin America.

• Generation segment may face continued volatility due to regional energy market imbalances.