Alupar Investimento (ALUP11) Q4 2025 earnings summary

Executive summary

• Fitch Ratings reaffirmed AAA (national) and BB+ (international) ratings with stable outlooks, supporting ongoing investment plans and reflecting strong capital structure and cash generation.

• Major debenture issuances raised R$2.45 billion for long-term funding of TAP, TECP, and other projects.

• Dividend payments and recommendations for 2025 totaled R$356 million, with a payout ratio of 50.8%.

• Projects in Brazil, Peru, and Chile advanced in land tenure, licensing, contracting, and construction, with TAP and TECP reaching about 28% physical progress.

• Transmission segment remained the main contributor, with new assets entering commercial operation and strong operational performance.

Financial highlights

• Net revenue for 4Q25 (IFRS) was R$1,163.7 million (+3.6% YoY), with regulatory net revenue at R$932.3 million (+6.9% YoY).

• EBITDA (IFRS) reached R$782.6 million (stable YoY), regulatory EBITDA was R$709.4 million (+8.5% YoY), and adjusted EBITDA margin was 78.8%.

• Net income (IFRS) was R$282.5 million (+22.7% YoY); regulatory net income was R$191.6 million (+95.5% YoY).

• Net debt stood at R$9,358.7 million, with net debt/EBITDA (IFRS) at 2.8x.

• Dividend payout for 2025 reached R$356 million, representing 50.8% of regulatory net income.

Outlook and guidance

• Investment cycle for current projects expected to conclude by 2029, with total Capex estimated at $2 billion.

• Management maintains focus on expanding the asset base, operational efficiency, and disciplined capital allocation.

• No current plans for a spin-off or IPO of international assets, but future consideration is possible.

• Ongoing portfolio management and hedging strategies to mitigate curtailment and market risks.

• Projections depend on market, economic, and sector conditions.