Energisa (ENGI3) Q1 2026 earnings summary

Executive summary

• Secured early 30-year extension of key electricity distribution concessions, covering nearly half of EBITDA and over 60% of the net remuneration base, enhancing regulatory predictability and supporting long-term planning.

• Achieved consistent operational growth and diversification, with positive performance across energy distribution, gas, transmission, and digital financial solutions.

• Recurring adjusted EBITDA reached R$1.98 billion, up 6.6% year-over-year, while recurring adjusted net income fell 47% to R$207 million, mainly due to higher financial expenses.

• Net operating revenue rose 9.5% year-over-year to R$12.5 billion, with adjusted net revenue up 7.6%.

• Investments surged 17% year-over-year to R$1.6 billion, primarily in electricity distribution.

Financial highlights

• Recurring adjusted consolidated EBITDA reached R$1.98 billion (+6.6% YoY); equity-adjusted EBITDA including Norgás was R$2 billion (+7%).

• Consolidated net revenue increased 7% year-over-year; PMSO expenses remained below inflation for the fifth consecutive quarter.

• Net income declined sharply, with consolidated net income at R$575 million (-44% YoY) and recurring adjusted net income at R$207 million (-47% YoY), mainly due to higher net financial expenses.

• Net financial expenses rose 36% to R$1.6 billion, reflecting the high interest rate environment and increased net debt.

• Consolidated investments totaled R$1.6 billion, up 17%, with 94% directed to energy distribution.

Outlook and guidance

• Long-term planning prioritized due to concession extensions through 2057–2061, focusing on meeting technical, regulatory, and financial requirements.

• Strategic investments in gas and transmission assets aim to strengthen the asset base and capture new opportunities.

• ESG targets surpassed for clean electricity and thermal plant decommissioning; renewable capacity target close to completion.

• Non-distribution business lines contributed 19.2% of consolidated EBITDA, progressing toward the 25% target by 2026.

• Cumulative investments through 1Q26 exceeded the 2026 projection (R$27.5 billion vs. R$24 billion target).