By Brazil Stock Guide – ENGIE Brasil Energia SA (EGIE3 BZ; EGIEY US) reported higher revenue and adjusted EBITDA in 2025, while adjusted net income declined, reflecting a more challenging hydrological scenario, higher operating costs and the impact of portfolio changes.
The Brazilian power generator and transmission operator posted net operating revenue of 12.86 billion reais in 2025, up 14.6% from 11.22 billion reais in 2024.
Adjusted EBITDA reached 7.64 billion reais in 2025, a 3.7% increase year over year, while adjusted net income totaled 2.845 billion reais, down 15.6% from the previous year. Reported net income fell 33.6% to 2.858 billion reais, reflecting non-recurring effects and accounting adjustments.
Fourth-Quarter Performance
In the fourth quarter, net operating revenue rose 4.5% to 3.418 billion reais from 3.271 billion reais a year earlier. Earnings before financial results and taxes declined to 1.479 billion reais from 1.685 billion reais in 4Q24.
Quarterly net income dropped 33.3% to 727 million reais, while adjusted net income fell 31.4%.
Energy Sales and Prices
The average net selling price of energy was 210.66 reais per megawatt-hour in 4Q25, down 6.3% from 224.93 reais in the same period of 2024. For the full year, the average price was 213.18 reais/MWh, 3.4% lower than in 2024.
Energy sold, excluding trading operations, totaled 39,933 gigawatt-hours in 2025, an 11% increase from 36,064 GWh in 2024. The increase was driven by new renewable capacity additions and the acquisition of hydroelectric plants Santo Antônio do Jari and Cachoeira Caldeirão, which reinforced the regulated portfolio.
Generation Mix and Hydrology
Total generation from plants operated by ENGIE Brasil reached 48,098 GWh in 2025, down 11.3% from 2024. Hydroelectric output fell 20.5% year over year, while complementary sources — wind, solar and biomass — rose 38.6%.
The decline in hydro generation was linked to system dispatch decisions within Brazil’s interconnected grid and the energy reallocation mechanism, which shares hydrological risks among participants.
Transmission and Capex Impact
Operating costs increased 34.1% in 2025 to 6.854 billion reais, reflecting higher construction expenses in the transmission segment, including projects such as Asa Branca and Graúna, as well as the consolidation of new renewable assets.
In transmission, annual permitted revenue (RAP), net of taxes, totaled 789 million reais in 2025, compared with 742 million reais a year earlier, supported by the partial entry into operation of new assets.
Net debt rose 26.8% year over year to 25.514 billion reais at the end of December, while adjusted return on equity stood at 20.4%, down from 27.4% in 2024.
The board approved a proposal to distribute 557.8 million reais in mandatory and additional dividends, equivalent to 0.48828975686 reais per share, subject to shareholder approval.
Leave a Reply