Light (LIGT3) Q4 2024 earnings summary

Executive summary

• Achieved significant operational and financial advances in 2024, including successful debt restructuring, judicial reorganization plan approval by over 99% of creditors, and improved cash position.

• Net income reached R$1.64 billion in 2024, reversing prior losses and marking a 550.7% year-over-year increase.

• Cash position increased 47% year-over-year to R$3.1 billion, supporting investments and operational stability.

• Net debt reduced by 48% year-over-year to R$4.5 billion, with further reduction to R$6.84 billion (-25.9%) after restructuring.

• Focused on innovation, efficiency, and technology, internalizing field teams and achieving a 40% productivity increase.

Financial highlights

• Consolidated net income of R$1.64 billion in 2024, up 550.7% year-over-year, driven by debt restructuring.

• Adjusted EBITDA for Distribution segment was R$1.42 billion, up 3.7% year-over-year; Generation and Trading EBITDA fell 13.9% to R$695 million.

• Net operating revenue increased 4.7% to R$15.06 billion; gross operating revenue up 4.8% to R$22.83 billion.

• Cash position reached R$3.09 billion (+47.3% year-over-year); net debt at R$6.84 billion (-25.9% year-over-year).

• Distributor's operating cash generation (EBITDA minus CAPEX) was R$453 million; CAPEX rose nearly 20% year-over-year.

Outlook and guidance

• Next steps include a reverse auction for prepayment of up to R$500 million in bonds, signing of the concession agreement, a private capital increase of R$1–1.5 billion, and conversion of R$2.3 billion to debentures.

• Optimistic about concession renewal, with regulatory discussions ongoing and new federal decree setting extension criteria.

• Focus remains on cash preservation, operational efficiency, and regulatory improvements for sustainable growth.

• Plans to continue capital expenditures, especially in infrastructure renewal and loss reduction, with R$100 million more planned for island supply projects through 2026.

• Judicial reorganization process expected to conclude in 2025, with further capital increases and a reverse auction for bond prepayment.