Auren Energia (AURE3) Q3 2025 earnings summary

Executive summary

• Adjusted EBITDA for 3Q25 was R$772.7 million, down 10.4% year-over-year, totaling R$3.8 billion over the last twelve months, mainly due to curtailment and GSF impacts.

• Integration of AES Brasil completed ahead of schedule, with R$58.1 million in quarterly synergy gains and R$212.1 million cumulative since acquisition, driving operational improvements.

• Net loss of R$403.7 million in 3Q25, compared to a profit of R$197.2 million in 3Q24, due to higher financial expenses and depreciation.

• Regulatory developments, including MP 1,304 and ANEEL compensation approval, are expected to impact future results.

• Leverage stood at 4.9x Net Debt/EBITDA at quarter-end, down 0.8x since 4Q24.

Financial highlights

• Net revenue rose 13% year-over-year to R$3,537 million in 3Q25; adjusted EBITDA margin declined to 21.8% from 27.5% in 3Q24.

• Net income swung to a loss of R$403.7 million in 3Q25 from a profit of R$197.2 million in 3Q24.

• PMSO synergies of R$58 million captured in 3Q25, totaling R$212 million since the AES Brasil acquisition.

• Operating cash flow after debt service was R$327.0 million, down 22.1% year-over-year; free cash flow for 3Q25 was negative R$428.0 million.

• Dividends from minority interests totaled R$99 million, fully from hydropower stakes.

Outlook and guidance

• Wind asset availability expected to reach 95% by December, one year ahead of schedule.

• Focus remains on maximizing synergy capture and process optimization following integration.

• Awaiting regulatory clarity on MP 1,304 for curtailment compensation, with potential BRL 250 million impact.

• Corporate reorganization targeted for completion in 2027 to unlock further synergies.

• Management expects long-term energy prices to rise as oversupply recedes, supported by recent increases in forward price curves and PPAs.