Companhia Paranaense de Energia (CPLE6) Q4 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q4 and full year 2025, with recurring EBITDA of R$1.36 billion in 4Q25 (+16.1% YoY) and R$5.53 billion in 2025 (+10.2% YoY), and recurring net income of R$682.6 million in 4Q25 (+29.6% YoY), despite challenging hydrological conditions and curtailment impacts.

• Strategic advances included the launch of Vision 2035, a multi-year investment plan, migration to Novo Mercado with a R$1.3 billion premium paid to shareholders, and enhanced governance and stock liquidity.

• Distributed R$3.8 billion to shareholders in 2025, including dividends, interest on equity, and Novo Mercado premium, with a payout ratio of 144% and dividend yield of 14%.

• Recognized for corporate sustainability by S&P Global and CDP Climate A List 2025, and maintained a disciplined, transparent approach to capital allocation and shareholder remuneration.

• Strategic divestment of Baixo Iguaçu Hydroelectric Plant (R$1.7 billion) and decommissioning of smaller assets, consolidating key transmission and generation assets.

Financial highlights

• Recurring EBITDA reached R$1.36 billion in 4Q25 (+16.1% YoY) and R$5.53 billion in 2025 (+10.2% YoY); recurring net income was R$682.6 million in 4Q25 (+29.6% YoY) and R$2.1 billion in 2025.

• Non-recurring curtailment offsets positively impacted EBITDA by R$266 million and financial revenue by R$8 million.

• CapEx totaled R$3.4 billion in 2025, with Q4 CapEx at R$768 million, focused on network modernization and infrastructure expansion.

• Total consolidated debt was R$20.04 billion at year-end 2025 (+12.9% YoY); leverage at 2.7x net debt/EBITDA.

• Dividend payout ratio reached 144.4% in 2025.

Outlook and guidance

• Vision 2035 strategic plan targets R$18 billion in investments over five years, focusing on growth, operational excellence, and innovation.

• DisCo tariff review scheduled for June 2026, with expectations to exceed R$18.5 billion in the new net remuneration base.

• LRCAP Capacity Reserve Auction in March 2026 presents value creation opportunities, with advanced hydro projects prepared for participation.

• Financial leverage target range between 2.5x and 3.1x net debt/EBITDA, converging to 2.8x within 24 months.

• Expectation of structurally higher energy prices in coming years, with a strategy to remain long in energy contracts for 2026.