ISA Energía Brasil (ISAE4) Q4 2025 earnings summary

Executive summary

• Achieved record investments in 2025, exceeding BRL 5 billion (up 40% YoY), focused on energy transition, grid modernization, and connecting renewables to consumers, with significant capital deployed in both greenfield and retrofitting projects.

• Advanced and energized major greenfield projects (including Piraquê, Serra Dourada, Jacarandá, Riacho Grande, and Tiago Guedes) ahead of schedule, adding over BRL 205 million in RAP/AAR and supporting grid reliability.

• ANEEL finalized RBSE payment methodology, securing BRL 3.8 billion in receivables through 2028 and increasing potential RAP by 1.3% to BRL 6.4 billion.

• Maintained strong shareholder returns, distributing over BRL 1.2 billion (75% payout ratio), with dividends and JCP scheduled through March 2026.

• Launched ISA 2040 Strategy and formalized Net Zero 2050 commitment, advancing sustainability, innovation, and ESG leadership.

Financial highlights

• Regulatory net revenue for 2025 was BRL 4,353.6 million (-4.5% YoY); Q4 2025 net revenue was BRL 1.12 billion (-3% YoY), impacted by lower RBSE and sector charges, partially offset by RAP/AAR adjustments and new projects.

• EBITDA for 2025 was BRL 3,455.3 million (-2.4% YoY); Q4 2025 EBITDA rose 8% to BRL 854 million, with margins above 76%.

• Net income for 2025 was BRL 1,625.8 million (-21.7% YoY), impacted by higher depreciation, financial costs, and new tax rules (OECD Pillar Two).

• IFRS net revenue for 2025 was BRL 9,411.2 million (+18.1% YoY); IFRS net income was BRL 2,447.9 million (-30% YoY).

• Net debt at year-end was BRL 14,127.9 million (+38.1% YoY), with gross debt of BRL 16 billion and leverage at 3.63x Net Debt/EBITDA.

Outlook and guidance

• Ongoing investment plan for 2026–2030 targets greenfield and retrofitting projects, with remaining CapEx of ~BRL 6 billion and AAR for 2025/2026 cycle set at BRL 6,372.74 million.

• CapEx peaked in 2025; leverage expected to decline as projects become operational.

• Dividend policy remains to distribute at least 75% of regulatory net profit.