Colbún (COLBUN) Q4 2025 earnings summary

Executive summary

• Signed purchase agreements in Chile with 92 clients for 846 GWh/year and in Peru with 26 clients for 63 MW contracted capacity in 2025.

• Entered a 15-year PPA with Atlas Renewable Energy for a 230 MW BESS project to supply renewable energy.

• Distributed $27M final dividend in May and $78M interim dividend in December 2025, totaling 50% of 2024 distributable net income.

• Issued a $500M green bond at 5.4% coupon, lowest spread for a Chilean corporate bond in 20 years; $266M used to refinance 2027 bonds.

• Acquired remaining 41.379% of Inversiones Las Canteras S.A., achieving 100% ownership of Fenix Power Perú.

Financial highlights

• Consolidated operating income for Q4 2025 was $393M, up 2% year-over-year; EBITDA was $165M, down 5% year-over-year.

• Net profit for the quarter was $31M, down from $54M in Q4 2024, mainly due to higher depreciation, lower EBITDA, and higher non-operating losses.

• Consolidated raw materials and consumables cost rose 7% to $182M, driven by higher gas and transmission costs.

• Cash balance decreased from $949M to $883M during the quarter.

• Cumulative operating income for 2025 was $1,595.6M, up 1% year-over-year; cumulative EBITDA was $609.1M, down 5%.

Outlook and guidance

• 2026 CapEx guidance: $50M for BESS Chaca, $130M for BESS Diego de Almagro Sur, $24M for Don Eduardo Substation, plus $70M in maintenance CapEx.

• Bayóvar and Algarrobal projects in Peru will commence after securing new PPAs.

• BESS project returns are not reliant on arbitrage spreads but are linked to PPAs.

• Expecting significant unregulated segment opportunities in 2026, with auctions totaling ~3 TWh.

• Growth strategy focuses on expanding renewable capacity in Chile and Peru, with several wind, solar, and battery projects under construction or in development.