Eneva (ENEV3) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 EBITDA of BRL 6.5 billion, up 67% year-over-year, and operating cash flow of BRL 5.7 billion, driven by asset acquisitions, operational stability, and new business lines including on-grid and off-grid gas trading.

• Net income was BRL 57 million in 4Q25, reversing a prior loss, and BRL 1,157.6 million for the year, up 2,655% year-over-year.

• Sergipe Hub's first full year of operation and expansion into new business models contributed significantly to EBITDA.

• Exploration campaigns in Parnaíba, Amazonas, and Paraná basins led to a reserve replacement rate of 111% for Parnaíba.

• Results reflect ramp-up of new gas chain businesses, asset acquisitions, and early start of regulated contracts for several thermal power plants.

Financial highlights

• Consolidated EBITDA for Q4 2025 reached BRL 1,488 million, up BRL 880 million year-over-year; full-year EBITDA was BRL 6,507 million, a 67% increase from 2024.

• Operating cash flow for Q4 2025 was BRL 1,318 million; year-end cash position at BRL 2,651 million.

• Net financial results improved by BRL 1,055 million in Q4 2025, mainly due to non-cash effects and lower mark-to-market variations.

• Net debt reached BRL 17 billion at year-end, with net debt/EBITDA at 2.6x.

• Investments totaled BRL 2,083 million in Q4 2025 and BRL 6,112 million in 2025, up 84.3% year-over-year.

Outlook and guidance

• 2026 expected to see strong thermoelectric dispatch due to high energy prices and lower reservoir levels.

• New contracts for Linhares UTE and Azulão Capacity Reserve to start in 2026, adding significant fixed annual revenue.

• Major projects like Azulão II TPP and Parnaíba liquefaction plant expansion scheduled for completion between 2026 and 2027.

• Ongoing dispatch and new project CODs expected to drive short- and mid-term growth.

• Publication of ceiling prices for 2026 LRCAP auction offers strategic opportunities for asset re-contracting and project pipeline development.