CPFL Energia (CPFE3) Q3 2025 earnings summary

Executive summary

• EBITDA reached R$ 3,175 million in 3Q25, up 0.3% year-over-year; net profit was R$ 1,376 million, up 3.3% year-over-year; accumulated EBITDA for the year grew 1.9% to R$ 10,044 million, and net income was R$ 4,178 million, a slight 0.2% decrease.

• Distribution segment saw strong EBITDA growth of 11.4%, driven by tariff adjustments and improved delinquency rates, while generation was impacted by a 37.3% curtailment rate and lower hydro inflows.

• Delinquency rates dropped significantly, maintaining below 1% for the third consecutive semester, with a 31% reduction over nine months; ADA/Revenue ratio improved to 0.91%.

• Major transmission auction win (Lot 3), the largest in the auction, adding 115 km of lines and four substations, with operations expected by 2030 and RAP of R$ 81 million.

• Received a global scale credit rating of BBB from Fitch, three notches above the sovereign rating, supporting competitive access to international markets.

Financial highlights

• CapEx expanded 19.2% year-over-year, reaching R$ 1.7 billion in the quarter and R$ 4.4 billion year-to-date, mainly in distribution.

• Net debt stood at R$ 28.7 billion, with a Net Debt/EBITDA ratio at 2.19x, consistent with previous quarters.

• Cash position remains strong at nearly R$ 6 billion at quarter-end, with 2025 and 2026 fully funded.

• Distribution EBITDA in 3Q25 was R$ 1,839 million (+11.4%), while generation EBITDA was R$ 1,070 million (-3.4%) and transmission EBITDA was R$ 248 million (-33.6%).

• Gross operating revenue rose 9.3% year-over-year to R$ 16.8 billion; net operating revenue increased 4.4% to R$ 11.3 billion.

Outlook and guidance

• Capex for 2025 is estimated at R$ 6.5 billion, with a multiannual plan of R$ 29.8 billion for 2025-2029, mainly allocated to distribution.

• Investment for the year expected to exceed R$ 6 billion, with continued focus on all business segments and operational efficiency.

• Positive long-term outlook with a clear agenda for new acquisitions, participation in future auctions, and reinforcing leadership as a low-carbon company.

• Strategy remains disciplined, focusing on assets with strategic fit and maintaining leverage around 2.2x.

• Participation in COP30 and sectoral climate change discussions to position for future opportunities.