CPFL Energia (CPFE3) Q1 2025 earnings summary

Executive summary

• EBITDA was R$3.85 billion, stable year-over-year, and net income was R$1.62 billion, down 8%.

• Capex rose 13.2% to R$1.24 billion, with 82% allocated to Distribution and a full-year target of R$6.5 billion.

• Distribution delinquency improved by 31%, with ADA/revenue ratio at 0.87%.

• Load in the concession area grew 1.7%, led by residential and industrial segments.

• Notable ESG achievements include top ANEEL satisfaction awards and the release of the annual sustainability report.

Financial highlights

• Net operating revenue grew 4.8% to R$10.66 billion; net debt was R$26.5 billion, leverage at 2.04x Net Debt/EBITDA.

• Distribution EBITDA rose 2.2% to R$2.59 billion; Generation EBITDA fell 10.5% to R$855 million; Transmission EBITDA up 40.6% to R$360 million.

• Commercialization & Services EBITDA fell by R$74 million due to lower margins.

• Gross debt cost at period end was 10.9% nominal, 6.5% real; average debt tenor 4.09 years.

• Cash coverage ratio was 0.97x, with 15% of debt maturing within 12 months.

Outlook and guidance

• Capex guidance for 2025 remains R$6.5 billion, with a multiannual plan of R$29.8 billion through 2029.

• Ongoing efforts to reduce delinquency and losses, with continued cut programs.

• Main distribution concessions submitted for early extension, awaiting regulatory approval.

• Commitment to invest R$230 million in biomes recovery by 2030, targeting 4,905 hectares.

• Strategy balances growth, efficiency, and dividend distribution.