Eletrobrás (ELET3) Q1 2025 earnings summary

Executive summary

• Achieved conciliation with the federal government and governance improvements, including a new collective bargaining agreement and the sale of Amazonas thermal power plants, supporting shareholder value and ESG progress.

• High operational availability in generation and transmission, with key projects like Coxilha Negra and Manaus-Boa Vista advancing.

• Shifted generation portfolio to nearly 100% renewable sources, with installed capacity at 44,359 MW and 97% from clean sources.

• Furnas merger fully incorporated, affecting segment reporting and efficiency initiatives.

• ESG initiatives advanced, including a new sustainability report, decarbonization partnerships, and investments in biodiversity.

Financial highlights

• Gross revenue rose up to R$12.2 billion, up 15.6% year-over-year, with net operating revenue at R$10.4 billion, up 19.5% year-over-year.

• Adjusted IFRS net income was -R$81 million, mainly due to a R$952 million regulatory remeasurement at Chesf.

• Regulatory EBITDA fell 4.1% year-over-year to R$5,485 million, with adjusted EBITDA margin at 42.4% and net income (IFRS) at -R$354 million.

• Operational costs and PMSO expenses dropped 28% sequentially and 8% year-over-year, with personnel costs down 15.1% year-over-year.

• Default at Amazonas Energia reduced to R$56 million from R$432 million year-over-year.

Outlook and guidance

• Expectation to maintain de-seasonalized cost structure throughout 2025, with ongoing focus on cost reduction, efficiency, and portfolio risk mitigation.

• Trading strategy leaves significant uncontracted volume for 2H25 to capture price upsides, considering scenarios for wet season outcomes.

• Anticipate further progress on divestments, especially in nuclear assets, and readiness for capacity auction in 2025.

• Effects of recent ANEEL tariff reviews to be fully reflected in the 2025-2026 cycle.