Colbún (COLBUN) Q2 2025 earnings summary

Executive summary

• Signed new power purchase agreements in Chile for 357 GWh/year with 39 clients and in Peru for 30.6 MW/year with 11 clients; advanced renewable and storage projects, including Horizonte Wind Farm expansion and BESS Celda Solar progress, and signed a 15-year agreement for a 230 MW BESS project with Atlas Renewable Energy.

• Santa María plant out of service since March due to turbine failure; repairs ongoing, insured event, expected to resume in 3Q25.

• Distributed final dividend of $27M in May, totaling 50% of 2024 distributable net income.

• Completed $41M sale of self-payment documents under PEC III law.

• Approved acquisition of remaining 41.379% of Fenix Power Peru S.A., to be completed in August, financed with cash and a $50M loan.

Financial highlights

• Consolidated operating income for 2Q25 was $403M, down 5% year-over-year; EBITDA was $141M, down 8% year-over-year; net income for 2Q25 was $48M, down 22% year-over-year.

• Cash balance increased from $768M to $788M during the quarter.

• Raw materials and consumables costs were $215M, down 8% quarter-over-quarter.

• Operating cash flow was $165M inflow, up from $5M YoY, mainly due to lower tax payments and billing timing.

• Investment cash outflow was $101M, up from $43M YoY, mainly for storage projects.

Outlook and guidance

• Santa María expected to resume operations in 3Q25; Rucúe unit one in October, unit two already operating.

• Renewable project pipeline progressing, with key milestones achieved in wind and solar projects; BESS Celda Solar COD in Q4 2026, BESS Diego Almagro Sur in Q1 2027.

• Monitoring hydrology and gas supply; firm gas contracted for August, further decisions pending hydrological developments.

• Considering refinancing options for 2027 maturities.