Eneva (ENEV3) Q2 2025 earnings summary

Executive summary

• Achieved record consolidated EBITDA of R$1,668 million in Q2 2025, up 56% year-over-year, driven by strong operating performance, asset acquisitions, and robust On-grid and Off-grid gas segments.

• Parnaíba Complex dispatch averaged 32% in Q2 2025, generating 1,304 GWh, with thermal plants' accelerated dispatch and incremental value from new supply contracts.

• Net operating revenues rose 80.9% year-over-year to R$3,514 million, with significant contributions from gas trading and assets acquired in 4Q24.

• Net income for Q2 2025 was R$364.5 million, down 65.8% year-over-year, mainly due to one-off tax effects in Q2 2024 and higher depreciation/amortization from new assets.

• Early start of 2021 Capacity Reserve Auction contracts for key TPPs will add over R$362 million in incremental fixed revenues between 3Q25 and 2Q26.

Financial highlights

• Q2 2025 EBITDA reached R$1,668 million, a 56% increase over Q2 2024, with a 43% annualized growth rate since Q2 2020.

• Operating cash flow hit a record R$1,301 million, up 36% year-over-year, supporting investments and debt payments.

• Net financial result improved to negative R$251.8 million from negative R$918.7 million in Q2 2024, mainly due to FX and swap mark-to-market effects.

• Ended Q2 with a cash position of R$3,856 million and net debt of R$15,315 million; leverage at 2.7x net debt/EBITDA, or 2.4x excluding non-cash impacts.

• EBITDA margin was 47.5% in Q2 2025, down 7.6 p.p. year-over-year due to higher operating costs.

Outlook and guidance

• Liquefaction plant capacity to increase by 50% with a third train, targeting 900,000 cubic meters/day; full contracted volume expected by end of next year.

• High thermal dispatch expected to continue through at least November, with flexible dispatch possible in some plants depending on market dynamics.

• Early start of capacity contracts for Viana, Parnaíba IV, and Geramar I/II TPPs to boost cash flow and fixed revenues from 2H25.

• Azulão 1 commissioning set for Q2 2026 and Azulão 2 for Q1 2027; PPAs to begin August 2026 and July 2027, respectively.

• New regulatory CVUs for Porto de Sergipe and Linhares TPPs provide additional generation options and revenue streams from September to December 2025.