ISA Energía Brasil (ISAE4) Q4 2024 earnings summary

Executive summary

• Celebrated 25th anniversary, rebranded to ISA Energia Brasil, unified ticker to ISAE4, and expanded operations to 18 states.

• Achieved strong 2024 results: net revenue up 14.3% to R$4,557.0 million and net income up 6.9% to R$2,076.6 million.

• Record investments in modernization and new projects, with CapEx reaching R$3,634.5 million (+75.8%).

• Minuano project began full commercial operation, adding R$50.2 million RAP for 2024/2025.

• Maintained robust shareholder remuneration, with a 75% payout ratio and 10.3% dividend yield.

Financial highlights

• 2024 net revenue: R$4,557.0 million (+14.3%); 4Q24 net revenue: R$1,156.6 million (+4.2%).

• 2024 EBITDA: R$3,541.0 million (+13.2%); 4Q24 EBITDA: R$794.3 million (-3.9%).

• 2024 net income: R$2,076.6 million (+6.9%); 4Q24 net income: R$810.1 million (-10.0%).

• Jointly controlled subsidiaries contributed R$712.6 million EBITDA in 2024 (+20.4%).

• Distributed R$1,555.5 million in interest on equity, equivalent to R$2.36 per share and a 10.3% dividend yield.

Outlook and guidance

• Plans to invest R$13 billion in new transmission projects by 2029, with R$8 billion in greenfield and R$5.5 billion in retrofitting.

• Six major projects in execution, with expected additional RAP of R$978.7 million upon completion.

• Expects to energize two projects in 2025 (Água Vermelha and Riacho Grande), with others progressing on schedule.

• Dividend payout policy remains at a minimum of 75% of regulatory net income.

• Permitted Annual Revenue (RAP) for 2024/2025 cycle set at R$6,288.9 million.