By Brazil Stock Guide – Alupar Investimentos SA (B3: ALUP11) reported a sharp increase in regulatory net income for the fourth quarter of 2025, driven by higher transmission revenue and the contribution of newly operational assets.
The Brazilian electricity transmission and generation company said regulatory net income attributable to shareholders reached R$191.6 million, a 95.5% increase year over year, reflecting stronger operating performance in its core transmission segment.
On an IFRS basis, net income totaled R$282.5 million, up 22.7% from R$230.3 million a year earlier, while net revenue rose 3.6% to R$1.16 billion in the quarter. Consolidated EBITDA came in at R$782.6 million, broadly stable compared with R$780.5 million in the same period of 2024.
Transmission segment drives earnings
Transmission remained the main earnings engine for Alupar during the quarter. Regulatory net revenue from transmission reached R$722.3 million, an increase of 13% year over year.
The growth was mainly linked to new assets entering commercial operation and tariff adjustments. Projects such as TCE, ELTE, and TBO (Rialma IV) contributed to higher revenue, while tariff updates tied to inflation indexes also supported results.
Regulatory EBITDA from transmission rose 11.6% to R$635.1 million, with an EBITDA margin of 87.9%. Regulatory net income in the segment increased 24.3% to R$342.8 million, reflecting the higher operating income and improved financial results.
Generation results decline but remain stable
The generation business delivered more modest performance during the quarter. Net revenue in the segment totaled R$211.6 million, down 9.9% year over year.
Segment EBITDA reached R$86.3 million, compared with R$100.5 million in the same quarter of 2024, with the EBITDA margin falling to 40.8%.
The generation unit posted a net loss of R$10.2 million, improving from a loss of R$16.6 million in the prior-year quarter.
Dividends and financing
Alupar also continued its shareholder distribution policy. The company approved several dividend payments related to 2025 results, including:
- R$0.10 per share (R$0.30 per unit) related to 3Q25, paid in January 2026
- R$0.11 per share (R$0.33 per unit) in complementary dividends paid in February 2026
For the fourth quarter, the board recommended a dividend of R$0.01 per share (R$0.03 per unit) for approval at the annual meeting.
During the period, Fitch Ratings reaffirmed the company’s AAA (bra) national credit rating and maintained its international ratings at BB+ in foreign currency and BBB- in local currency, all with stable outlook.
Operational performance
Transmission assets maintained strong availability during the quarter, with physical availability close to 100%, highlighting stable network operations.
In energy generation, the company continued managing exposure to curtailment in Brazil’s renewable sector and market price differences between regional electricity subsystems.
Alupar operates transmission and generation assets across Brazil and other Latin American markets, with multiple projects under development aimed at expanding its electricity infrastructure portfolio.
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