Companhia Paranaense de Energia (CPLE6) Q2 2025 earnings summary

Executive summary

• Recurring EBITDA reached R$1.3 billion in 2Q25, up 4.2% year-over-year, with recurring net income of R$452.4 million and CapEx of R$975.3 million, supporting an accelerated investment cycle.

• Net operating revenue rose 13.6% to R$6.2 billion in 2Q25, driven by higher electricity supply and sectorial financial assets.

• Portfolio optimization included the sale of small hydro assets, asset swap with Eletrobras, and consolidation of new assets.

• Migration to Novo Mercado is underway, aiming to unify share classes, boost liquidity, and enhance governance, though temporarily delayed by a minority shareholder's request.

• Recognized for ESG leadership and operational excellence, winning multiple industry awards.

Financial highlights

• Recurring EBITDA rose 4.2% to R$1.3 billion versus 2Q24, with GenCo and DisCo contributing significantly.

• Recurring net income was R$452.4 million in 2Q25, down 9.5% year-over-year, mainly due to a 38.7% increase in financial expenses.

• CapEx for the quarter was R$975.3 million, totaling R$1.6 billion for 1H25, focused on quality and efficiency.

• Net debt reached R$16.6 billion, with leverage at 3.1x, or 2.9x excluding the Baixo Iguaçu HPP acquisition.

• Personnel and management costs reduced by 14.9%, supporting operational efficiency.

Outlook and guidance

• CapEx is on track to exceed R$3 billion for 2025, with investments focused on expanding the remuneration base and modernizing infrastructure.

• Migration to Novo Mercado expected to conclude by year-end if regulatory delays are resolved promptly.

• Dividend policy sets a minimum payout of 75% of net income, with at least two annual payments planned.

• Participation in upcoming capacity auctions is anticipated, pending regulatory guidelines.

• Continued focus on portfolio optimization, asset divestments, and operational efficiency to enhance returns.