Auren Energia (AURE3) Q2 2025 earnings summary

Executive summary

• Adjusted EBITDA reached BRL 981 million in Q2 2025, up 18% year-over-year, and BRL 2.2 billion for the semester, the highest in company history, with leverage reduced to 4.8x Net Debt/Adjusted EBITDA.

• Integration of AES Brasil assets and systems neared completion ahead of schedule, with unified SAP and operations, and R$154 million in cumulative synergies since 4Q24.

• Proprietary generation rose 15.3% year-over-year to 3.2 GWavg in Q2 2025, with wind asset availability improving to 93% and generation consistently above P90 certification.

• Successfully immunized the CESP Vivest pension plan, reducing the extra deficit by up to BRL 693 million and annual contributions by up to BRL 36 million.

• Leadership transition announced, with Mario stepping down as CEO and João Guillaumon appointed.

Financial highlights

• Net revenue rose 25% to BRL 2,886 million in Q2 2025; adjusted EBITDA margin was 34.0%.

• Net loss of BRL 562.9 million in Q2 2025, mainly due to higher finance costs and depreciation.

• Net debt to adjusted EBITDA reduced to 4.8x, a 0.9x decrease in the semester.

• Gross debt at BRL 24.5 billion as of June 2025, with new issuances totaling BRL 3.5 billion.

• Operating cash flow after debt service was BRL 373.7 million in Q2 2025, down 41.8% year-over-year.

Outlook and guidance

• Integration of AES Brasil assets expected to complete by December 2025, with focus on synergy capture and wind asset availability targeting 95% by year-end.

• Commercialization results expected to be less expressive in the second semester, with strong performance in the first half.

• Contracting levels for generation portfolio at 94% for 2025, 95% for 2026, and 86% for 2027.

• Continued emphasis on resilience, robust risk management, and value creation through commercialization and innovation.