Light (LIGT3) Q3 2025 earnings summary

Executive summary

• Received favorable recommendation for 30-year renewal of distribution concession, pending final government approval, validating compliance with technical, economic, and operational criteria.

• Transformation and judicial reorganization plans advanced, with debt reprofiled, capital structure improved, and liquidity maintained at R$2.64 billion.

• Non-technical losses improved to 22.8% from 23.1% year-over-year.

• Investments totaled R$472 million in the quarter, up 60% year-over-year, focused on modernization and preventive actions.

• Adjusted EBITDA fell 15% year-over-year to R$508 million, impacted by lower temperatures, higher PMSO expenses, and adverse hydrological conditions.

Financial highlights

• Ended Q3 2025 with R$2.64 billion in cash, after investing R$472 million in the quarter, a 60% increase year-over-year.

• Net debt to EBITDA ratio at 2.89x as of September, with further improvement expected post-debt conversion and capital increase.

• Adjusted EBITDA for the distributor was R$402 million in the quarter, down 8.3% year-over-year.

• Generation and Trading segment reported adjusted EBITDA of R$103 million, down 36.1% year-over-year, and net income of R$21 million.

• Net income for the quarter was R$33 million, down 79.3% year-over-year, mainly due to non-recurring financial expenses.

Outlook and guidance

• Broad investment plan expected post-concession renewal, focusing on asset modernization, reliability, and loss reduction.

• Anticipates increased productivity and significant reduction in PMSO expenses in coming years due to structural projects.

• Next steps include private capital increase of up to R$1.5 billion and conversion of debts into shares, pending new concession agreement.