Companhia Paranaense de Energia (CPLE6) Q1 2025 earnings summary

Executive summary

• Recurring EBITDA reached R$1.5 billion in Q1 2025, up 13% year-over-year, reflecting strong integrated operations and a diversified portfolio.

• Net income rose to R$665 million (+15.2%), with recurring net profit of R$576.9 million (+6.4%) and operating cash generation of R$992.6 million.

• Board of Directors fully renewed with independent, multidisciplinary members, aiming for sustainable growth and technical excellence.

• Dividend payout of R$1.3 billion approved for FY2024, with payment scheduled for May 2025 and a yield near 9%.

• Continued progress on asset divestments, with 67% of small asset divestments closed and Baixo Iguaçu Hydroelectric Plant approval expected in 2H25.

Financial highlights

• Net operating revenue rose 8.8% to R$5,892.1 million, driven by higher energy sales and grid availability revenue.

• Recurring EBITDA reached R$1.5 billion, a 13% increase year-over-year, with DisCo contributing 46.1% and GenCo 27.5%.

• Recurring net income was R$665 million, up 15.2% from 1Q24.

• CapEx for Q1 2025 was R$679.2 million, mainly in distribution grid modernization and transmission asset improvements.

• Leverage improved to 2.3x net debt/EBITDA, down from 2.6x in 4Q24.

Outlook and guidance

• Strategic plan structured in three waves: efficiency (2024/25), operational excellence (2025/26), and expansion (2026/30).

• New dividend policy with a minimum payout of 75%, at least two payments per year, and a target leverage of 2.8x net debt/EBITDA (range 2.5x–3.1x), effective immediately.

• Flexibility to operate within the leverage range for up to 24 months, using dividends as a tool to reach optimal structure.

• No major M&A or capital allocation moves expected in 2025; focus remains on operational efficiency and investment plan execution.

• Ongoing investment in grid modernization and renewable generation, with commitment to ESG leadership.