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 expansion into new business lines such as on-grid and off-grid gas trading.

• Net income rebounded to BRL 57 million in 4Q25 and BRL 1,157.6 million for the year, reflecting ramp-up of new gas chain businesses and early start of regulated contracts.

• Sergipe Hub's first year of operation and new business models contributed significantly to EBITDA, with increased gas trading and power generation revenues.

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

Financial highlights

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

• Operating cash flow for Q4 2025 was BRL 1,318 million; full-year operating cash flow was BRL 5,669.8 million, up 26.6% year-over-year.

• Ended 2025 with a cash position of BRL 2,651 million and net debt of BRL 17 billion; net debt/EBITDA at 2.6x.

• EBITDA margin improved to 24.6% in Q4 2025 and 35.3% in 2025.

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

Outlook and guidance

• 2026 expected to see strong thermoelectric dispatch due to high energy prices and lower rainfall, favoring assets with own gas supply.

• Major projects like Azulão II TPP and SSLNG 3rd train scheduled for completion between 2026 and 2027, with new contracts for Linhares UTE and Azulão Capacity Reserve starting in July and August 2026.

• Azulão II regulated contract to begin July 2027, adding BRL 2.2 billion per year in fixed revenue.

• Expansion of Parnaíba liquefaction plant on track for commercial operation in H2 2027.

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