ISA Energía Brasil (ISAE4) Q1 2026 earnings summary

Executive summary

• Net revenue grew 8.3% year-over-year to BRL 1.2 billion, with EBITDA up 10.6% to BRL 1 billion and net income rising 6% to BRL 357.7 million, driven by tariff adjustments, new project energizations, and operational excellence.

• Investments in Q1 2026 totaled BRL 1.2 billion, up 10.3% year-over-year, with 70% allocated to greenfield projects and 30% to retrofitting and improvements.

• Asset portfolio simplification included an asset swap with Axia Energia, consolidation of IE Madeira, and divestment from IE Garanhuns.

• Major operational milestones included early energization of Piraquê Block 2 and continued focus on value generation and financial discipline.

• Significant progress in sustainable growth strategies contributed to annual permitted revenue of BRL 330 million.

Financial highlights

• Net operating revenue excluding RPSC/RBSE grew 24% year-over-year, driven by new project connections and RAP/AAR adjustments.

• EBITDA margin improved to 83.3% from 81.6% in Q1 2025.

• Net income reached BRL 357.7 million, a 6% increase over Q1 2025, aided by higher equity income and end of deferred depreciation.

• Gross debt stood at BRL 16.3 billion (+1.8% vs. Dec/25), with an average term of 8.7 years and average cost reduced to 11.64% p.a.

• Net debt rose 8.8% to BRL 15.4 billion, with a net debt/EBITDA ratio of 3.72x.

Outlook and guidance

• Pipeline of BRL 12 billion in investments starting April 2026, focused on greenfield projects and network reinforcements, with remaining CAPEX for greenfield projects through 2028 estimated at BRL 5.0 billion.

• Authorized investments projected to increase by BRL 12 billion through 2033, with an R&I project portfolio totaling BRL 7.2 billion.

• Expectation of ongoing market opportunities in energy transition, batteries, and transmission auctions.

• AAR for the 2025/2026 cycle set at BRL 6.4 billion, with 56% from renewed contracts.

• Continued focus on profitable, value-generating projects, maintaining financial discipline and a 75% payout of regulatory net income.