ISA Energía Brasil (ISAE4) Q3 2025 earnings summary

Executive summary

• Q3 2025 focused on sustainable value generation, with continued investment in transmission, greenfield, and retrofitting projects, and a disciplined approach to growth and capital allocation.

• Net revenue for 3Q25 was R$1,072.3 million, down 9.1% year-over-year; net income rose 27.4% to R$550 million, driven by lower depreciation and tax efficiency.

• Major projects under construction, such as Serra Dourada and Piraquê, are progressing as planned, supporting future revenue growth and network reliability.

• The company advanced its sustainability agenda, targeting Net Zero by 2050 and achieving a 60% reduction in SF6 gas losses.

• The company decided not to participate in the upcoming transmission auction, maintaining focus on long-term opportunities.

Financial highlights

• Net revenue for Q3 2025 was R$1,072.3 million, down 9.1% year-over-year, mainly due to a strong comparative base and RBSE effects.

• EBITDA for 3Q25 reached R$888.5 million, a 7.3% decrease year-over-year, with a margin of 82.9%.

• Net income grew 27.4% year-over-year to R$550 million, driven by lower depreciation and tax efficiency.

• Capex in 3Q25 rose 38.9% to R$1,205.4 million, driven by greenfield and retrofitting projects.

• Net debt increased 35.2% year-over-year to R$12,887.2 million as of September 2025.

Outlook and guidance

• Five greenfield projects under construction are expected to generate over R$1 billion in RAP once energized, with R$7.0 billion in remaining CAPEX through 2028.

• RAP for the 2025-2026 cycle increased by 1.3% to R$6.4 billion, with further growth anticipated as new projects come online.

• The company targets Net Zero emissions by 2050, with a 60% reduction by 2040 and 90% by 2050.

• Maintenance of dividend payout policy, distributing at least 75% of regulatory net income.

• Investments in reinforcement and improvement projects are expected to continue, with a record R$438 million invested in Q3 2025.