Auren Energia (AURE3) Q4 2025 earnings summary

Executive summary

• Achieved record Adjusted EBITDA of R$4.0 billion in 2025, up 20% year-over-year, and R$1.0 billion in Q4 2025, up 13% sequentially, driven by successful AES Brasil integration and synergy capture.

• Completed AES Brasil integration in record time, capturing R$279 million in recurring PMSO synergies, more than double initial estimates.

• Pension liability immunization reduced actuarial deficit by R$991 million, lowering future contributions and mitigating risk.

• Wind asset availability reached 95% by year-end, one year ahead of target, validating operational turnaround.

• Regulatory progress with Law 15,269/2025 and Public Consultation No. 210, enabling compensation for reliability-related curtailment and reducing sector uncertainty.

Financial highlights

• Adjusted EBITDA for Q4 2025 reached R$1.0 billion, up 13% year-over-year; full-year net revenue rose 17.1% to R$13.2 billion.

• Net profit of R$354.7 million in Q4 2025, reversing a loss in Q4 2024; full-year net loss of R$557.9 million.

• Net debt at R$19.2 billion, leverage reduced to 4.8x Net Debt/Adjusted EBITDA from 5.7x in 2024.

• Average debt maturity extended to 6.9–7 years; cost of debt reduced to CDI -2.8% per year.

• Robust liquidity of R$5.5 billion at year-end, covering obligations for the next three years.

Outlook and guidance

• 2026 expected as a transition year with continued operational and regulatory pressures but improved fundamentals.

• Focus on process refinement, zero-based budgeting, and further efficiency gains.

• Portfolio expected to become progressively uncontracted from 2028, positioning for higher long-term energy prices.

• Accelerated deleveraging projected from 2027, targeting Net Debt/EBITDA of 3.0–3.5x.

• Regulatory changes anticipated to reduce indexation, especially for CESP investments.