Auren Energia (AURE3) Q1 2025 earnings summary

Executive summary

• Achieved record Adjusted EBITDA of R$1.2 billion in Q1 2025, up 66% year-over-year, marking the first full quarter post-AES Brasil integration and reflecting strong operational performance across hydro, wind, and solar assets.

• Strategic focus on synergy capture, with R$56 million in PMSO savings in the quarter and a target of R$250 million in annual synergies by year-end 2025.

• Leverage reduced to 5.0x Net Debt/Adjusted EBITDA, down from 5.7x in December 2024, supported by early debt repayment and new debenture issuance.

• Wind asset availability improved to 90% in Q1 2025, up 12.4 percentage points year-over-year, with further improvements targeted.

• Net income was R$54 million, reflecting higher EBITDA but also increased financial expenses and depreciation.

Financial highlights

• Net revenue reached R$2.95 billion, up 34% year-over-year; Adjusted EBITDA margin improved to 40.8%.

• Trading segment Adjusted EBITDA grew over 200% to R$165 million, benefiting from market volatility and proactive hedging.

• PMSO expenses reduced by R$56 million, supporting synergy targets; cash conversion ratio at 45%.

• Net debt stood at R$18.96 billion, with gross debt reduced by R$2.2 billion after prepayment of acquisition financing.

• Dividends from equity interests totaled R$58 million in Q1 2025.

Outlook and guidance

• Integration of AES Brasil expected to conclude by end-2025, with continued focus on synergy capture and deleveraging.

• Targeting 95% availability for wind assets by December 2025, with major maintenance and blade replacements scheduled for H2.

• Advanced PPA negotiations for Cajuína 3, aiming for full energy sales by project completion in 2026.

• Portfolio remains highly contracted for 2025–2027, supporting revenue visibility.