ENGIE Brasil Energia S.A.
For Immediate Release
Additional information:
Eduardo Sattamini
Chief Executive Officer
Pierre Leblanc
Chief Financial and Investor Relations Officer
Leonardo Depiné
IR Manager Leonardo.Depine@engie.com Tel.: +55 (48) 3221-7904/7246
Video conference
On August 08, 2025 at 11:00 a.m. (BRT), 10:00 a.m. (EDT) in Portuguese with simultaneous translation into English)
to access the transmission Visit our Website
Florianópolis, Brazil, August 7, 2025. ENGIE Brasil Energia S.A. ("ENGIE" or "Company") - B3: EGIE3, ADR: EGIEY - announces earnings for the Second Quarter and six months period ending on June 30, 2025 (2Q25/6M25). The information in this release is shown on a consolidated basis and in accordance with Brazilian accounting principles and practices. The values are expressed in Brazilian Reais (R$), except where otherwise indicated. Rounding effects may cause differences in percentage changes, when comparing the comments on Economic-Financial Performance, presented in R$ million, with the Income Statement (Appendix III), presented in R$ thousand.
ENGIE Brasil Energia reaffirms its execution capacity with the Board of Directors approves distribution of R$ 719 million in dividends.
Net operating revenue reached R$ 3,086 million in 2Q25, 10.1% (R$ 284 million) higher than recorded in 2Q24.
Adjusted Ebitda2 in 2Q25 reached R$ 1,866 million, a decrease of 4.4% (R$ 86 million) compared to the 2Q24. The adjusted Ebitda margin was 60.5% in 2Q25, 9.2 p.p. lower than reported in 2Q24.
The adjusted net income was R$ 564 million in 2Q25, 34.0% (R$ 291 million) lower than posted in the 2Q24. The decreases in net income and Ebitda reflect a one-off indemnification of R$ 262 million, booked in 2Q24.
The average price of the energy sales agreements, net of taxes on revenues and trading operations, was R$ 217.0/MWh in 2Q25, 1.6% lower than registered in the 2Q24.
Excluding trading operations, the energy sales volume in 2Q25 was 9,290 GWh (4,254 average MW), 4.8% higher than sold in 2Q24.
At the end of 2Q25, 165 of the 188 wind turbines of the Serra do Assuruá Wind Complex, in Bahia were in commercial operation and a further 23 on a test basis, corresponding to 846 MW installed and commissioned.
Four of the 16 photovoltaic parks were operating commercially and eight on a test basis at the Assú Sol Photovoltaic Complex at end of 2Q25, equivalent to 552.7 MW in operation.
The Company is undertaking a restructuring of the Executive Board, the aim being to align the local organizational structure to the ENGIE Group model and bring the business lines into greater focus.
Summary of Financial
Consolidated (in R$ million) | 2Q25 | 2Q24 | Var. | 6M25 | 6M24 | Var. |
Net Operating Revenue (NOR) | 3,086 | 2,802 | 10.1% | 6,100 | 5,412 | 12.7% |
Results from Operations (EBIT) | 1,541 | 1,695 | -9.1% | 3,262 | 4,615 | -29.3% |
Ebitda 1 | 1,871 | 1,961 | -4.6% | 3,915 | 5,126 | -23.6% |
Adjusted Ebitda 2 | 1,866 | 1,952 | -4.4% | 3,906 | 3,767 | 3.7% |
Adjusted Ebitda by transmission and quota effects 3 | 1,715 | 1,864 | -8.0% | 3,523 | 3,544 | -0.6% |
Ebitda / NOR - (%) 1 | 60,6 | 70,0 | -9.4 p.p. | 64,2 | 94,7 | -30.5 p.p. |
Adjusted Ebitda / NOR - (%) 2 | 60,5 | 69,7 | -9.2 p.p. | 64,0 | 69,6 | -5.6 p.p. |
Net Income | 567 | 871 | -34.9% | 1,394 | 2,555 | -45.4% |
Adjusted Net Income | 564 | 855 | -34.0% | 1,387 | 1,648 | -15.8% |
Adjusted Return on Equity (ROE) 4 | 23.1 | 28.1 | -5.0 p.p. | 23.1 | 28.1 | -5.0 p.p. |
Adjusted Return on Invested Capital (ROIC) 5 | 15.4 | 18.3 | -3.0 p.p. | 15.4 | 18.3 | -3.0 p.p. |
Net Debt 6 | 21,561 | 17,344 | 24.3% | 21,561 | 17,344 | 24.3% |
Gross Power Production (avg MW) 7 | 4,088 | 5,852 | -30.1% | 4,736 | 6,121 | -22.6% |
Energy Sold (avg MW) 8 | 4,254 | 4,058 | 4.8% | 4,346 | 3,960 | 9.7% |
Average Net Sales Price (R$/MWh) 9 | 217,01 | 220,57 | -1.6% | 215,50 | 224,27 | -3.9% |
Number of Employees - Total | 1,265 | 1,207 | 4.8% | 1,265 | 1,207 | 4.8% |
EBE Employees | 1,240 | 1,185 | 4.6% | 1,240 | 1,185 | 4.6% |
Employees on Under Construction Plants | 25 | 22 | 13.6% | 25 | 22 | 13.6% |
3
Ebitda: net income + income tax and social contribution + financial result + depreciation and amortization.
Adjusted Ebitda: net income + income tax and social contribution + financial result + depreciation and amortization + impairment + non-recurrent.
Adjusted EBITDA, less the effects of IFRS in the transmission segment and quota plants.
ROE: adjusted net equity for the past 4 quarters /shareholders' equity.
Subsequent EventsROIC: effective tax rate x adjusted EBIT / invested capital (invested capital: debt
- cash and cash equivalents - deposits earmarked for debt servicing + SE).
Adjusted amount, net of gains from hedge operations.
Total gross electricity output from the plants operated by ENGIE Brasil Energia.
Disregarding sales for quota regime (Jaguara and Miranda HPPs).
Net of taxes and trading operations.
As of August 7, 2025, two more photovoltaic parks of the Assú Sol Photovoltaic Complex, started tests, totaling four operating commercially and ten on a test basis.
On July 15, 2025 ENGIE Brasil Energia concluded its 15th debenture issue totaling R$ 2.2 billion, and the first to have the "Green Debenture" classification.
On July 18, the Company took over the operation of the 162-kilometer brownfield section of Graúna Transmissora de Energia, won at the Aneel Transmission Auction 02/2024, beginning to receive the Annual Permitted Revenue (RAP).
The Board of Directors approved the distribution of R$ 719.2 million as intermediate dividends (R$ 0.88143194897/share) representing 55% of the distributable net income reported in the first half of 2025. Shares will become ex-dividend as from August 22, 2025 and will be paid on a date to be determined later by the Executive Board.
This material contains information and opinions on future events subject to risks and uncertainties, based on current expectations, projections and tendencies. Several factors may affect the estimates and assumptions which may cause the forward-looking statements not to be realized. Therefore, shareholders and investors should not make decisions based solely on these estimates, projections and statements.
Message from ManagementThe second quarter 2025 was characterized by significant advances in construction and public recognitions strengthening ENGIE Brasil Energia's position in the vanguard of the energy transition in Brazil with its focus on sustainable growth and operational excellence.
We concluded work on the Serra do Assuruá Wind Complex in Gentio do Ouro (BA), a project which incorporates 24 wind farms and an installed capacity of 846 MW. Considered as the ENGIE Group's largest wind complex anywhere in the world, the energy from this enterprise is entirely allocated to the Free Contracting Environment (ACL). At the close of 2Q25, 165 of the 188 wind turbines were already operating on a commercial basis and the remainder at a test phase, underscoring our capacity to execute and deliver clean and safe power.
Work is also progressing on the Assú Sol Photovoltaic Complex, situated in Assú (RN) at an investment of R$ 3.3 billion (baseline January/2023). With 100% energy destined for the ACL market, the project had reached 96% physical completion at the end of June. Of the 16 solar parks, 12 were already operating commercially or on a test basis and totaling 552.7 MW in operation at the
end of the 2Q25. The Complex is expected to be fully operational on a commercial basis in the last quarter of this year. 4
As for the transmission line segment, Asa Branca Transmissora de Energia was granted a preliminary License by the Federal Environmental Protection Agency (Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis) - Ibama, for the TL 500kV Poções III - Medeiros Neto II - João Neiva 2 - Viana 2 and their associated substations. There were also advances in civil construction work and the assembling of the substations, including metallic structures and the stringing of transmission line cables. The negotiation of supply agreements as well as transmission installation sharing contracts proceeded apace at Graúna Transmissora de Energia in addition to the issuance of the Basic Project and the conclusion of environmental studies. Again, on July 18, the Company took over the operation of Graúna Transmissora de Energia's brownfield section, the latter for which it bid successfully at the Aneel Transmission Auction 02/2024, initiating the Annual Allowed Revenue (RAP) payments.
Underscoring our priority in the
and the area surrounding them, during 2Q25, we
conducted seven
in partnership with local Civil Defense organs.
On the governance front and effective July 1, we announced the restructuring of our Executive Board with a focus on the strategic evolution of our business segments, aligning us with ENGIE Group's model worldwide.
From the financial point of view, we reported solid results driven by our discipline in the management of capital and the evolution of our projects. Net operating revenue was R$ 3.1 billion, 10.1% more than 2Q24. Adjusted Ebitda amounted to R$ 1.9 billion and adjusted Net Income posted R$ 564 million, reductions of 4.4% and 34.0% respectively, year-on-year, mainly a reflection of the indemnity payment for delays in delivery work on the Santo Agostinho Wind Complex, received in 2Q24 in the amount of R$ 262 million. Disregarding the effect of indemnity revenue in 2Q24, adjusted Ebitda and Net Income in 2Q25 would have increased by 10.4% and decreased by 17.3%, respectively. Investments in the quarter totaled R$ 781 million, their focus being on the expansion and modernization of the generator park.
Underscoring the priority in the safety of our assets and the area surrounding them, during 2Q25, we conducted seven evacuation simulations at hydropower plants in partnership with local Civil Defense organs and with strong support from the communities (average of 117%).
In recognition of our initiatives, ENGIE Brasil Energia was highlighted by XP Investimentos as one of nine Brazilian companies deemed the most promising for those seeking investments aligned to a low carbon economy. In addition, the Company was awarded the maximum qualification - Gold Seal - received from the Brazilian GHG Protocol Program, an initiative of the Getúlio Vargas Foundation for evaluation of Greenhouse Gas inventories (GHG).
In the free energy market, we recorded growth of approximately 22% in the customer base and 15% in total number of consumer units when compared with the same period in 2024. The results are a reflection of our commercial strategy and the growing demand for sustainable and long-term energy solutions.
As to events subsequent to the period under review and underlining our commitment to sustainability, we concluded the 15th simple debenture issue worth R$ 2.2 billion - the first to be structured as green debentures in alignment with our Green Finance Framework as well as being certified by DNV (the acronym for Det Norske Veritas), one of the largest and most recognized certifying and independent verification institutions in the world. The resources are to be used for expanding generation of renewable energy and the modernization of existing assets such as the Salto Osório Hydropower Plant (PR). Furthermore, on August 7 the Board of Directors approved an interim dividend distribution of R$ 719 million (R$ 0.8814 per share), representing a payout of 55% of distributable net profits.
We remain steadfast in our purpose of leading Brazil's energy transition, combining operational performance, social and environmental responsibility, and innovation. We would like to thank the trust placed in us by our shareholders, customers, employees, and partners in building a more sustainable future. 5
Good reading!
Eduardo Sattamini
Chief Executive Officer
Pierre Leblanc
Chief Financial and Investor Relations Officer
Breakdown of Assets
At the end of the 2Q25, ENGIE Brasil Energia had 9,992.2 MW of installed capacity and operates a generating complex with 11,702.0 MW, comprised of 129 plants (11 hydro and 118 complementary energy source plants - biomass, SHP, wind powered and solar), 125 of which are wholly-owned by the Company and four (the Itá, Machadinho and Estreito Hydro Power Plants and the biomass-fired Ibitiúva Bioenergética co-generation plant) jointly-owned through consortia with other companies.
Installed Capacity (MW) Assured energy Concession Power Plants Source Location (aMW) Company's Total Company's Share expiration date Share | |||||||
Itá | Hydro | Uruguai River (SC and RS) | 1,450.0 | 1,126.9 | Dec/32 | 528.7 | |
Salto Santiago | Hydro | Iguaçu River (PR) | 1,420.0 | 1,420.0 | Nov/30 | 702.2 | |
Machadinho | Hydro | Uruguai River (SC and RS) | 1,140.0 | 414.8 | Oct/35 | 143.7 | |
Salto Osório | Hydro | Iguaçu River (PR) | 1,103.7 | 1,103.7 | Apr/31 | 487.3 | |
Estreito | Hydro | Tocantins River (TO and MA) | 1,087.0 | 435.6 | Feb/47 | 244.1 | |
Cana Brava | Hydro | Tocantins River (GO) | 450.0 | 450.0 | Dec/35 | 247.8 | |
Jaguara | Hydro | Grande River (MG) | 424.0 | 424.0 | Jun/48 | 324.0 | |
Miranda | Hydro | Araguari River (MG) | 408.0 | 408.0 | Jun/48 | 188.3 | |
São Salvador | Hydro | Tocantins River (TO) | 243.2 | 243.2 | Jun/40 | 140.8 | |
Passo Fundo | Hydro | Passo Fundo River (RS) | 226.0 | 226.0 | Apr/31 | 107.5 | |
Ponte de Pedra | Hydro | Correntes River (MT) | 176.1 | 176.1 | Mar/37 | 127.6 | |
Total - Hydro | 8,128.0 | 6,428.3 | 3,242.0 | ||||
Generating Installed Capacity (MW) Authorization Assured energy Power Plants Source Location (aMW) Company's Units1Total Company's Share expiration date Share | |||||||
Serra do Assuruá Complex 2 | Wind Farm | 21 | Lages and Pedro Avelino (RN) | 742.5 | 742.5 | Nov/56 | 366.4 |
Assu Sol Complex 3 | Solar | 4 | Assú (RN) | 171.6 | 171.6 | Feb/57 | 52.9 |
Santo Agostinho Complex - Phase I | Wind Farm | 14 | Lages and Pedro Avelino (RN) | 434.0 | 434.0 | May/56 | 224.2 |
Campo Largo II Complex | Wind Farm | 11 | Umburanas (BA) | 361.2 | 361.2 | Aug/54 | 192.5 |
Umburanas Complex - Phase I | Wind Farm | 18 | Umburanas (BA) | 360.0 | 360.0 | Aug/49 | 213.3 |
Campo Largo I Complex | Wind Farm | 11 | Umburanas (BA) | 326.7 | 326.7 | May/51 | 166.5 |
Trairi Complex | Wind Farm | 8 | Trairi (CE) | 212.6 | 212.6 | Sep/41 | 97.2 |
Lar do Sol Complex4 | Solar | 3 | Pirapora (MG) | 198.0 | 198.0 | Sep/41 | 53.0 |
Paracatu Complex | Solar | 4 | Paracatu (MG) | 132.0 | 132.0 | Jun/51 | 34.0 |
Juazeiro Complex | Solar | 4 | Juazeiro (BA) | 120.0 | 120.0 | Jun/51 | 34.8 |
Sertão Solar Complex | Solar | 4 | Barreiras (BA) | 94.6 | 94.6 | Jul/53 | 26.1 |
Floresta Complex | Solar | 3 | Areia Branca (RN) | 86.0 | 86.0 | Jun/51 | 25.1 |
Sol do Futuro Complex | Solar | 3 | Aquiraz (CE) | 81.0 | 81.0 | Jun/51 | 16.2 |
Ferrari Termoelétrica | Biomass | Pirassununga (SP) | 72.5 | 72.5 | Jun/42 | 25.6 | |
São Pedro Complex | Solar | 2 | Bom Jesus da Lapa (BA) | 54.0 | 54.0 | Mar/51 | 16.0 |
Assú V | Solar | Assú (RN) | 34.0 | 34.0 | Jun/51 | 9.2 | |
Ibitiúva Bioenergética | Biomass | Pitangueiras (SP) | 33.0 | 22.9 | Apr/30 | 11.6 | |
Rondonópolis | SHP | Ribeirão Ponte de Pedra (MT) | 26.6 | 26.6 | Dec/37 | 14.0 | |
José Gelazio da Rocha | SHP | Ribeirão Ponte de Pedra (MT) | 24.4 | 24.4 | Dec/37 | 11.9 | |
Nova Aurora | Solar | Tubarão (SC) | 3.0 | 3.0 | not applicable5 | 0.2 | |
Tubarão | Wind Farm | Tubarão (SC) | 2.1 | 2.1 | not applicable5 | 0.3 | |
Tubarão 2 | Wind Farm | Tubarão (SC) | 4.2 | 4.2 | not applicable5 | 0.0 | |
Total - Complementary | 3,574.1 | 3,563.9 | 1,591.0 | ||||
Total | 11,702.0 | 9,992.2 | 4,833.0 | ||||
| Generating Complex as of June 30, 2025
6
For the composition of wind and solar complexes.
Complex composed of 24 wind power plants, 21 of which in full commercial operation on 6/30/2025.
Complex composed of 16 wind power plants, 4 of which in full commercial operation on 6/30/2025.
The Lar do Sol plant does not have a declared physical guarantee, therefore its commercial capacity is based on expected generation.
For generating plants with installed capacity lower than or equal to 5 MW the legal instrument applicable is the record.
| Transmission Assets under Operation as of June 30, 2025
Transmission line Location Extention km | Annual RAP (R$ million) * | Substations | Property | Concession expiration | |||
Gralha Azul | State of Paraná | 909.0 | 341.1 | 5 own and expansion of 5 existing ones | 100% | Mar/48 | |
Novo Estado | States of Pará and Tocantins | 1,800.0 | 463.0 | 1 own and expansion of 3 existing ones | 100% | Mar/48 | |
Gavião Real | State of Pará | - | 7.8 | New patio in 1 existing | 100% | Sep/52 | |
Total | 2,709.0 | 811.9 | |||||
* RAP: Annual Allowed Revenue. / Values on the base date of June 2025 (cycle 2025-2026), net of PIS and Cofins charges.
Transportadora Associada de Gás S.A. - TAG.
The largest natural gas transportation operation in Brazil, TAG has an infrastructure of approximately 4,600 km of high-pressure gas pipelines extending along the country's southeastern and northeastern seaboards as well as a further section of line between Urucu and Manaus, in the state of Amazonas, crossing 10 Brazilian states and around 200 municipalities.
The gas pipeline network has several interconnection points, among them, 14 active gas entry points (including three Liquified Natural Gas (LNG)), a further 90 gas outlet points and two entry and outlet points (one more under construction), connection with 10 gas distributors, serving two refineries, ten thermoelectric power plants and two fertilizer plants. The network includes also 11 compressor stations along its length, all of them wholly owned. The operation of the assets is executed from the Control and
Supervision Center (CSC) in the company's headquarters in the city of Rio de Janeiro. 7
TAG is 100% contracted through long-term legacy contracts with Petrobras and a connection contract to serve the Sergipe Hub in the Northeast region, all regulated by the National Petroleum, Natural Gas and Biofuels Agency (ANP). In addition to these, TAG signed 396 firm contracts in 2025 (49 active), which totaled 9.7 million m3 of transportation capacity, in entry and delivery point agreements, representing around 11% of TAG's total revenue for the year (15% considering only the integrated network).
| Corporate Structure
RR AP
Solimões Basin
ENGIE S.A.
32.5%
50.0%
ENGIE Brasil Energia
17.5%
AM
AC
RO
PA MA
PI
TO
MT BA
CE RN
PB PE
AL
SE
Sergipe Alagoas Basin
GNL Terminal
GO
MG
MS ES
SP
RJ
PR
Recôncavo Basin
Espírito Santo Basin Campos Basin
Santos Basin
SC
RS
TAG has a series of projects in hand to be executed over the next five years which are expected to surpass R$ 5.4 billion in investments. 57% of this amount will be allocated in projects to expand TAG's transportation capacity or extend the network in line with the positive outlook of ENGIE Group for the natural gas industry in Brazil.
| Completed Projects:
Gasfor II, in the state of Ceará, is a gas pipeline for optimizing the network in which R$ 430 million has been invested. In August 2022, the Ministry of Mines and Energy classified the project as priority. Work has been concluded and authorization for operations granted in May 2025, adding a further 84 km to TAG's pipeline network.
Itagibá outlet point, in the state of Bahia, is a new delivery point to attend the local distribution company, situated along the northern leg of Gasene. This Project required an investment of R$ 23 million. Work has been completed and is now awaiting the issue of the Operating Permit.
| Project under Implementation:
Buriti delivery point, in the state of Amazonas for connecting the local distribution network, will be implemented to meet thermoelectric demand in the Manaus region, bringing energy security and supporting the region's decarbonization. The project awaits the issue of the Construction License.
| Main Projects under Development:
Itajuípe compressor station, located on the northern leg of the Gasene pipeline, for increasing current transportation capacity by 3 million m3/day. The project is listed in the New Growth Acceleration Program (PAC).
Goytacazes Gas Pipeline (GASOG), connection of the Porto do Açú regasification terminal to the Cabiúnas-Vitória gas pipeline, 45 km long and 10 million m3/day of transportation capacity. The preliminary agreement for the design was approved at the end of 2022.
Storage: TAG and Origem Energia have signed a non-binding agreement for developing the first natural gas storage project in Brazil. The project's estimated total investment, when feasible, will be approximately US$ 200 million, split into different stages. On completion of the initial stage, storage capacity will be 51 million m³/year. Over the long term, capacity may reach as much as 500 million m³/year.
In addition, other projects at different phases of study could require about R$ 20 billion in investment, representing significant growth potential.
Contract/Section | Extension (km) | Customer | Contract Maturity1 | Volumes Contracted (MM m³/day) | % of Net Operating Revenue2 | Readjustment index |
Gasene | 1,400 | Petrobras | Nov/33 | 30.3 | 40.1% | 46% basket IGP3; 54% US PPI |
Malha Nordeste | 2,100 | Petrobras | Dec/25 | 21.6 | 23.2% | IGP-M |
Pilar-Ipojuca | 200 | Petrobras | Nov/31 | 15.0 | 6.3% | IGP-M |
Urucu-Manaus | 800 | Petrobras | Nov/30 | 6.7 | 29.7% | 50% IGP-M; 50% IPCA |
Conexão Sergipe | 25 | Eneva | Oct/54 | 14.0 | 0.5% | 20% IGP-M; 80% IPCA |
Lagoa Parda-Vitória4 | 100 | Various | Dec/25 | 0.3 | 0.2% | 55% IGP-M; 45% IPCA |
Total | ~4,600 | 87.9 | 100.0% |
| Contracts Breakdown
8
1 Following the expiry of the agreements, a five-year tariff revision cycle will be triggered, which will decide the revised maximum permitted revenue flow (RAP).
2 Variations in revenue representativeness between GTAs may occur.
3 1/3 IGP-M, 1/3 IPA-DI; 1/3 IGP-DI.
4 Capacity of the section contracted under the entry and exit regime through the Capacity Offer Portal (POC) for the period from January to December 2025.
Jirau Energia - Rondônia.
Jirau Energia is responsible for the maintenance, operation and sale of energy generated by the Jirau Hydroelectric Power Plant, located in the Madeira River, in the city of Porto Velho, state of Rondônia. The Jirau Hydro Power Plant has had 50 generating units in operation since November 2016, representing a total installed capacity of 3,750 MW.
On May 20, 2025, the Ministry of Mines and Energy (MME) issued Order 2.946, establishing the new physical guarantee amounts for Jirau HPP. The defined values are 2,222.6 average MW for operation at the 90-meter extended level and 2,335.1 average MW for operation at the 90-meter constant level.
Of the total increase in firm energy, one-third belongs to the Bolivian government. As a result, the portion allocated to Brazil corresponds to 2,182.2 average MW at the 90-meter
| Jirau Energia PPA's Portfolio | Average MW
2,152 2,182 2,257 2,257 2,257 2,257 2,257
extended level and 2,257.2 average MW at the 90-meter constant level.
14 93
14 94
98
14 42
98
98
98
98
40%
20%
40%
538
538
538
558
22 14
580
14
1,950
2,159
1,565
1,565
1,565
1,565
1,565
(58)
2025
(29)
2026-27 2028-34
2035
2036-42
209
2043
2044-45
ENGIE Brasil Energia is awaiting a signal from its controlling company to, together with the Company's statutory bodies, begin studies and proposals for the transfer of the 40% stake in Jirau Energia, and 100% in the trading company Geramamoré Participações e Comercializadora de Energia Ltda.
In 2Q25, Jirau Energia generated 2,477 average MW, 28.0% higher than the 1,935 average MW for 2Q24, while the National Electrical System Operator Uptime Ratio (FID) was 100% (data subject to final Electric Energy Trade Board (CCEE) booking).
Graúna Transmission System - Santa Catarina, Paraná, Minas Gerais, São Paulo and Espírito Santo.
Winner of the Aneel Transmission Auction 02/2024, the Block 1
was denominated Graúna and contemplates the implantation of six new transmission lines, totaling around 780 kilometers in length, in addition to two new substations and a new sectioning. The scope of the project also includes the continued servicing of four existing lines (totaling 162 kilometers) and two substations in the states of Santa Catarina, Paraná, Minas Gerais, São Paulo, and Espírito Santo, crossing 47 municipalities.
The public service transmission line concession, including licensing, construction, operation, and maintenance of the transmission installations will be 30 years counting from the date of signature of the concession agreement, which occurred on December 9, 2024.
MS
Gralha Azul
BA
GO
MG
Graúna ES
SP
RJ
PR
SC Graúna
Asa Branca
9
In 2Q25, the project saw further advances with the negotiation of the Main Supply Contracts, the signing of four Transmission Installation Sharing Agreements, the anticipated issuance of the Basic Project for assessment by the National System Operator (ONS), the completion of environmental studies and the first
Transmission Assets
Greenfield Lot - Auction 02/2024 Brownfield Lot - Auction 02/2004 Power plants under operation
applications for preliminary licenses submitted to the respective environmental protection agencies. Also noteworthy are the initiatives involving landownership agreements with the start of negotiations, as well as progress in topographic and drilling work.
As a subsequent event, on July 18, 2025, the Company assumed the operation of the brownfield section of the project, consisting of lines 162 kilometers in length together with two substations, located in the states of Minas Gerais and Espírito Santo. The Annual Allowed Revenue (RAP) for this section is R$ 14.0 million, corresponding to approximately 5% of the project total.
The maximum permitted term for construction is 60 months, albeit with the possibility of abbreviating the period. The project enjoys relevant locational synergies with Gralha Azul Transmission System and other assets in the Company's portfolio, favoring operational and strategic gains.
Block
Location
Contracted RAP Estimated Aneel Capex
(R$ million)1(R$ million)
1 Santa Catarina, Paraná, Minas Gerais, São Paulo and Espírito Santo
268.3 2,933.6
1 Value as of June 2025.
Total 268.3 2,933.6
Signing of Contract for Acquisition of Hydroelectric Plants - Amapá and Pará.
On March 21, 2025, the Company signed the acquisition agreement of two hydropower plants, totally contracted in the regulated market, adding a further 612 MW of installed capacity to its portfolio after the closing of the operation:
Santo Antônio do Jari Hydropower Plant, located on the Jari River between the municipalities of Laranjal do Jari (Amapá) and Almeirim (Pará), has 393 MW of installed capacity and 211 average MW of commercial capacity. The plant began its commercial operations in 2014 and the concession matures in October 2045. Its energy is entirely contracted in the regulated market in two contracts: 190.0 average MW with respect to the 11th New Energy auction held in 2010, at a price of R$
230.42 (baseline - Oct/2024) until Dec/2044, with protection against GSF of 92%; and 20.9 average MW with respect to the 15th New Energy auction in 2012, at a price of R$ 161.43 (baseline Oct/2024) until Dec/2046, with 89% protection against GSF.
Cachoeira Caldeirão Hydropower Plant, located on the Araguari River in the municipality of Ferreira Gomes (Amapá), has an installed capacity of 219 MW and a commercial capacity of 123 average MW. The plant began commercial operations in 2016 with grant valid to August 2048. Contracting of 130.0 average MW was at the 15th New Energy auction at a price of R$ 187.63 (baseline Oct/2024) to Dec/2046 and enjoys a protection against GSF of 89%.
PA
AP
10
Asa Branca Transmission System - Bahia, Minas Gerais and Espírito Santo.
Acquired in the Transmission Auction 01/2023, promoted by Aneel, Block 5 was named Asa Branca and will have around 1,000 kilometers of extension. Located in the states of Bahia, Minas Gerais and Espírito Santo the project provides for the implementation of four 500kV single-circuit transmission lines. The concession period for the public transmission service, including licensing, construction, operation and maintenance of the transmission facilities, will be 30 years from the date of execution of the concession contract, which occurred on September 27, 2023.
In 2Q25, work on the Morro do Chapéu II - Poções III section proceeded with civil engineering work and assembly of substation equipment as well as civil engineering activities and assembling of the transmission line's metallic structures and the conductor cables in the field.
On June 24, 2025, the Instituto Brasileiro do Meio Ambiente - Ibama (Federal Environmental Protection Agency) issued a
Preliminary License for the LT 500kV Poções III - Medeiros Neto II - João Neiva 2 - Viana 2 sections and associated substations. The maximum deadline for starting operations is March 2029.
Block
Location
Contracted RAP Estimated Aneel Capex
(R$ million)1(R$ million)
5 Bahia, Minas Gerais and
Espírito Santo
282.7 2,667.0
1 Value as of June 2025.
Total 282.7 2,667.0
ES
MG
Asa Branca
BA
Serra do Assuruá Wind Complex - Bahia.
Comprising 24 wind farms, being installed in a single phase in the municipality of Gentio do Ouro, state of Bahia, the project's authorization grant has been issued by Aneel. The complex has an estimated installed capacity of 846 MW and an estimated commercial capacity of 410.2 average MW. Energy generated will be entirely directed to the Free Contracting Environment, the wind complex also being able to meet demand from clients in the energy self-production market. With the creation of around 3,000 direct and indirect jobs in the region, the estimated investment is approximately R$ 6 billion (as of May/2022).
In 2Q25, work involving the assembling and commissioning of all the wind turbines was concluded. These are now fully operational and equivalent to a total of 846 MW installed and commissioned.
As of June 30, 2025, 165 wind turbines were operating commercially, while a further 23 were at a test phase and awaiting authorization from Aneel to begin commercial operations.
| Commissioning
188
3 37 (2%)
(20%)
188
188
23
(
12%)
23
(
12%)
Under construction
Test basis Commercial op.
148 165
(79%) (88%)
3/31/2025 6/30/2025
165
(88%)
8/7/2025
11
Assú Sol Photovoltaic Complex - Rio Grande do Norte.
The project is located in the municipality of Assú, state of Rio Grande do Norte and is to have an installed capacity of approximately 752 MWac (895 MWp) and an estimated commercial capacity of 229.6 average MW. At an investment worth approximately R$
3.3 billion (as of Jan/23), its energy entirely fed into the Free Contracting Environment.
Implementation activities had advanced to 96% completion by the end of 2Q25. Delivery of all components has been completed and tracker foundations for the project concluded during the quarter under review. Execution of drainage work, tracker assembly, installation of solar panels and commissioning are ongoing.
The entry into operation of the first photovoltaic units on a test basis took place in October 2024. At the end of 2Q25, four of the 16 farms were already in commercial operations and eight were in a test phase, output totaling 552.7 MW in operation. By August 7, two more farms had started test operations.
/
The entry into full commercial operations is scheduled for the fourth quarter of 2025.
| Commissioning
16 16
16
Under construction
Test basis Commercial op.
3/31/2025 6/30/2025
8/7/2025
4
(25%)
4
(25%)
4
(25%)
4
(25%)
8
(50%)
10
(63%)
2
(13%)
4
(25%)
8
(50%)
Projects under development are in the pipeline and at an advanced stage in the relative feasibility studies, albeit with no commitment to begin construction and awaiting adequate commercial conditions and evidence of future pricing for investments.
Plants
Source
Location
Installed Capacity (MW)
Total Company's Share
Santo Agostinho Solar Complex | Solar | Lajes and Pedro Avelino (RN) | 509.0 | 509.0 |
Campo Largo Solar Complex | Solar | Umburanas and Sento Sé (BA) | 308.0 | 308.0 |
Santo Agostinho Wind Complex - Phase II | Wind | Lajes and Pedro Avelino (RN) | 279.0 | 279.0 |
Umburanas Wind Complex - Phase II | Wind | Umburanas (BA) | 250.0 | 250.0 |
Campo Largo III Wind Complex | Wind | Umburanas and Sento Sé (BA) | 250.0 | 250.0 |
Alvorada Solar Complex | Solar | Bom Jesus da Lapa (BA) | 100.0 | 100.0 |
Total | 1,696.0 | 1,696.0 |
12
Santo Agostinho Wind Complex - Phase II - Rio Grande do Norte.
Located next to the first phase, will capture synergies that will assist in the development and viability, such as: accommodation, external access, substation, transmission line and others. In December 2021, the Instituto de Desenvolvimento Sustentável e Meio Ambiente, the environmental protection agency for the state of Rio Grande do Norte, granted an environmental installation license for the project - its total installed capacity being 279 MW - optimizing the wind resources and new technologies available in the market.
Umburanas Wind Complex - Phase II - Bahia.
The environmental licensing for the Second Phase is already regularized although this is to be updated during advanced development (pre-build) to reflect the new technologies available in the market and to ensure optimum use of the region's wind resources. In due course, the project is to be developed by the Company adjacent to the Campo Largo and Umburanas - Phase I Wind Complex, in this way capturing synergies during the installation and operational stages such as the substation, site accommodation, accesses, teams and others. The project has all the necessary documentation for participation in energy auctions, although this not obviating the potential viability of the project for the sale of energy to corporate clients in the free market. The currently installed capacity planned for the project is approximately 250 MW, taking advantage of the best wind resources in the region.
Campo Largo Wind Complex - Phase III - Bahia.
The Company intends to add about 250 MW of installed capacity to the Campo Largo Wind Complex with the development of its third phase. This project already has all the necessary documentation for participating in energy auctions, although this not obviating the potential viability of the project for the sale of energy to corporate clients in the free market. In March 2021, the Institute for the Environment and Water Resources (Inema), the environmental protection agency for the state of Bahia, issued a Preliminary Environmental license for the project which is located adjacent to Phases I and II of the Campo Largo Wind Complex, the relative synergies being important for ensuring the viability of Phase III.
Santo Agostinho Photovoltaic Complex - Rio Grande do Norte.
Located in the vicinity of the Santo Agostinho Wind Complex (RN), this solar energy complex has 12 photovoltaic farms, totaling a potential installed capacity of up to 509 MW. The project is at the development phase for participation in both free and regulated markets.
Campo Largo Photovoltaic Complex - Bahia.
Situated in the same area as the Campo Largo Wind Complex (Bahia State), the photovoltaic project is to have 9 photovoltaic solar energy plants, these totaling a potential installation capacity of up to 308 MW. The projects are at a development phase to participate in opportunities in both free and regulated markets.
Alvorada Photovoltaic Complex - Bahia.
ENGIE Brasil Energia has acquired a site in the state of Bahia, - a region with potential for generating solar energy - for the development of three projects comprising the Alvorada Photovoltaic Complex. The projects, which will have a total installed capacity of up to 100 MW. The projects are at the development phase to participate in opportunities in both the free and regulated markets.
Besides the abovementioned projects, the Company is also examining opportunities in areas with high energy potential, as well as partnerships which could accelerate the development in line with the process of energy transition of ENGIE Group.
Operating Development Energy Generating Park and Distribution Lines UptimeIn 2Q25, the hydropower plants operated by ENGIE Brasil Energia achieved an uptime ratio of 93.4%, (considering programmed and forced stoppages) a year-on-year increase of 1.6 p.p., in comparison with the same quarter of 2024, when they operated at 91.8%. This variation reflects mainly protracted maintenance work in the second quarter of 2024, conducted on the Salto Santiago and Miranda Hydro Power Plants.
Regarding the complementary plants, the Company discloses its energy uptime ratio for its wind and photovoltaic complexes, a
methodology which will reflect the business from a better technical point of view, given that these sources of energy rank 13
increasingly more important relative to the Company's overall portfolio.
The energy uptime ratio in 2Q25 for the wind plants was 92.4%, 1.9 p.p. lower than 2Q24. The decrease is related to the operational stabilization phase at the Santo Agostinho Wind Complex, entry into full operation taking place in the third quarter of 2024.
In relation to the photovoltaic plants, the energy uptime ratio was 96.3% in 2Q25 a growth of 6.4 p.p. in relation to the 89.9% recorded in 2Q24. This growth reflects the resumption of inverter operations at the São Pedro and Sertão Solar photovoltaic complexes, acquired in March 2024, the modernization of the Floresta Photovoltaic Complex's trackers and the reconstruction of the Paracatu 4 Photovoltaic Complex.
For the transmission assets, Engie Brasil Energia recorded a strong operational performance for Gralha Azul, Novo Estado and Gavião Real with a total uptime index of 99.96% in 2Q25, and 99.97% for the full year 2025. The transmission assets have turned in excellent operational performance since their entry into commercial operations.
| Uptime Operating | Considering Scheduled Shutdowns
1.6 p.p.
-1.9 p.p.
-0.02 p.p.
6.4 p.p.
91.8% 93.4% 94.3% 92.4%
96.3%
89.9%
99.98%99.96%
Hydro
Complementary
2Q24 2Q25
Consolidated
Transmission
2Q24 2Q25
Earnings Release 2Q25 ENGIE Brasil Energia S.A.
Energy GenerationIn the second quarter of 2025, the plants operated by ENGIE Brasil Energia produced 8,927 GWh (4,088 average MW), a reduction of 30.1% compared with the same period in 2024.
Of the total generated, the hydropower plants contributed 5,914 GWh (2,708 average MW), while the complementary sources generated 3,013 GWh (1,380 average MW). These results represent a drop of 44.8% in hydropower generation and an increase of 46.4% in energy generated from complementary sources, compared to 2Q24.
The reduction in hydropower plants output in 2Q25 compared to the same period in 2024 reflects the difference in hydrometeorological conditions in southern Brazil. In the second quarter 2024, river flows were well above average and attributed to the El Niño phenomenon, which concentrated rainfall in the south of the country to the benefit of energy generation, providing positive conditions for reservoir storage in the Uruguai and Iguaçu River basins. By contrast, in the second quarter of 2025, the
southern region of Brazil experienced unfavorable hydrometeorological conditions with river flows below average at the 14
hydropower plants located in the same geographical area. Consequently, there was a significant reduction in reservoir volumes and corresponding hydropower generation.
The increase in generation from the complementary plants in 2Q25 was driven by both wind plants, these producing 2,365 GWh (1,084 average MW), and also solar parks, responsible for an additional 516 GWh (236 average MW), an increase of 55.8% and 45.9%, respectively, in relation to the second quarter 2024.
This performance benefited from the full commercial operations at the Santo Agostinho Wind Complex, the reconstruction of the Paracatu 4 Photovoltaic Farm and the entry into operation of the Serra do Assuruá Wind Complex and Assú Sol Photovoltaic Complex. The latter two accounted for 978 GWh (448 average MW) of generation in 2Q25.
Also worth recalling is that the decrease in the Company's hydropower generation does not necessarily deteriorate the economic-financial performance. Similarly, an increase in this type of generation does not necessarily imply a growth in economic-financial performance. This is due to the application of the Energy Reallocation Mechanism (MRE), where the inherent hydrological risks of hydropower generation are shared proportionally among MRE participants.
| Generation | Average MW
| Generation by Complementary Source | Average MW
4,736
4,088
2,708
3,549
1,380
1,187
5,407
715
6,121
-22.6%
4,910
-30.1%
5,852
942
2Q24 2Q25 6M24 6M25
Hydro Complementary
+46.4%
1,380
43
98
138
+66.0%
1,187
19
24
942
17
68
350
195
41
162 715
16
35
348
106
695
734
558
560
17
2Q24 2Q25 6M24 6M25
Note:
The variation between the percentage calculated in GWh and average MW in 6M24 occurs due to 2024 was a leap year.
CurtailmentAccording to the National Electric System Operator's (ONS), there are three main categories of curtailment: Energetic (when it is impossible to allocate generation to the load), Electrical Reliability (due to reasons related to the electrical reliability of equipment external to the plants) and External Unavailability (caused by unavailability of facilities external to the plants). Of these, External Unavailability only allows the agent to potentially be reimbursed for generation limitations, as long as the conditions comply with the established Aneel and ONS parameters.
According to an analysis of the data published by the ONS in 2Q25, the wind and solar power plants operated by ENGIE Brasil Energia recorded 14% generation curtailment. The other plants that make up the National Interconnected System (SIN) recorded total unavailability of 15%. The Company's wind farms recorded a total reduction of 12%, compared to 11% in the SIN, and 23% in solar versus 28% for the SIN, as can be seen in the following table:
2Q25
Wind
Solar
Total
| Curtailment by source 15
Curtailment ENGIE Brasil Energia 12% 23% 14%
Curtailment SIN 11% 28% 15%
| Curtailment by asset
| % Curtailment over 2Q25 Generation | average MW
Wind power plants | Commercial capacity (aMW) | 2Q25 (%) | 2Q24 (%) |
Trairi (CE) | 97.2 | 27% | 8% |
Santo Agostinho (RN) | 224.2 | 18% | 16% |
Campo Largo I and II (BA) | 359.0 | 8% | 2% |
Serra do Assuruá (BA) | 742.51 | 12% | - |
Umburanas (BA) | 213.3 | 8% | 1% |
4,298
210
1,530
210
1,320
(14%)
4,088
(5%)
Juazeiro (BA) | 34.8 | 17% | 9% | generation | generation |
Sertão Solar (BA) | 26.1 | 34% | 10% | Generation | Curtailment |
São Pedro (BA) | 16.0 | 38% | 18% | ||
Lar do Sol (MG) | 53.0 | 25% | 1% | ||
Paracatu (MG) | 34.0 | 17% | 5% |
Solar power plants 2 Commercial 2Q25 (%) 2Q24 (%) capacity (aMW) | |||
Sol do Futuro (CE) | 16.2 | 20% | 9% |
Floresta (RN) Assú V (RN) | 25.1 9.2 | 40% 25% | 22% 17% |
Assú Sol (RN) | 171.61 | 18% | - |
Wind + solar Total
Notes:
1 Operational capacity on 06/30/2025.
2 Solar data available from April/2024.
Source: In-house study by ENGIE Brasil Energia based on assumptions published by the ONS and subject to updates.
Gas TransportationIn 2025, TAG is 100% contracted through long-term legacy contracts with Petrobras and a connection contract to serve the Sergipe Hub in the Northeast region, all regulated by the ANP. Additionally, in 2Q25, 396 firm contracts (49 active) were signed with 22 carriers, totaling a volume of 9.7 million m³/day of transport capacity. This volume represents approximately 11% of the total volume contracted by TAG, and 15% considering only the integrated network (excluding the Urucu-Manaus Gas Transport Pipeline (GTA), where Petrobras remains the sole carrier).
Electric Energy Sales PortfolioWe show below the participation of the Company's customers (with the exception of CCEE and other revenues) in total physical sales and in the total of Net Operating Revenue (NOR) of the generation segment.
16
| Breakdown of Customers by Physical Sales (%)
37.4 | 35.6 | 38.0 | 36.3 | ||||||
57.8 | 60.5 3.9 | 57.1 4.9 | 59.7 4.0 | ||||||
4.8 | |||||||||
2Q24 2Q25 6M24 6M25
| Breakdown of Customers in Contracted Sales Comprising NOR of the Generation Segment (%)
46.7
2.7
50.6
46.5
2.7
50.8
47.7
3.2
49.1
46.7
2.7
50.6
2Q24 2Q25 6M24 6M25
Commercialization Strategy of Electric Energy
The Company pursues a commercial strategy of gradual sales of future energy availability for any given year as a means of mitigating the risk of exposure to spot prices (Price for Settlement of Differences - PLD) for that particular year. Electric energy sales are made during windows of opportunity that open when the market shows greater buying propensity. ENGIE Brasil Energia's energy balance based on proprietary commercial capacity and power purchasing agreements outstanding as of June 30, 2025, is as follows:
(in average MW) | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | In R$/MWh | |||
Own Resources | 4,708 | 4,880 | 4,880 | 4,880 | 4,880 | 4,798 | Auction Gross Price | Reference Date | Adjusted Gross Price | Price Net of PIS/ Cofins/P&D |
+ Purchases for Resale | 670 | 465 | 339 | 327 | 221 | 199 | ||||
= Total Resources (A) | 5,378 | 5,345 | 5,219 | 5,207 | 5,101 | 4,997 | ||||
Government Auction Sales1 | 1,849 | 1,839 | 1,813 | 1,803 | 1,803 | 1,803 | ||||
2005-NE-2010-30 | 200 | 200 | 200 | 200 | 200 | 200 | 115.1 | Dec-05 | 322.0 | 289.3 |
2006-NE-2009-30 | 493 | 493 | 493 | 493 | 493 | 493 | 128.4 | Jun-06 | 353.9 | 317.9 |
2006-NE-2011-30 | 148 | 148 | 148 | 148 | 148 | 148 | 135.0 | Nov-06 | 370.0 | 331.5 |
2007-NE-2012-30 | 256 | 256 | 256 | 256 | 256 | 256 | 126.6 | Oct-07 | 332.6 | 298.8 |
Proinfa | 19 | 19 | 10 | - | - | - | 147.8 | Jun-04 | 472.4 | 454.8 |
1st Reserve Energy Auction | 2 | - | - | - | - | - | 158.1 | Aug-08 | 379.9 | 366.1 |
Auction Mix (New Energy / Reserve) | 8 | - | - | - | - | - | - | - | 369.5 | 356.0 |
2014-NE-2019-25 | 10 | 10 | 10 | 10 | 10 | 10 | 206.2 | Nov-14 | 363.4 | 350.1 |
2014-NE-2019-20 | 82 | 82 | 82 | 82 | 82 | 82 | 139.3 | Nov-14 | 245.6 | 222.8 |
2015-NE-2018-20 | 46 | 46 | 46 | 46 | 46 | 46 | 188.5 | Aug-15 | 307.8 | 279.4 |
8th Reserve Energy Auction (Assú V/Floresta/Paracatu/Juazeiro/Sol do Futuro | 119 | 119 | 119 | 119 | 119 | 119 | 298.2 | Nov-15 | 471.4 | 427.8 |
7th Reserve Energy Auction (São Pedro) | 15 | 15 | 15 | 15 | 15 | 15 | 301.8 | Nov-15 | 489.8 | 444.5 |
2017-EN-2019-20 | 48 | 48 | 48 | 48 | 48 | 48 | 136.4 | Nov-14 | 246.0 | 223.2 |
2017-EN-2021-20 (Sertão Solar) | 27 | 27 | 27 | 27 | 27 | 27 | 189.5 | Nov-14 | 209.2 | 189.9 |
2024-EE-2025-2 | 17 | 17 | - | - | - | - | 162.6 | - | 162.6 | 147.6 |
Government Auction - Quotas regime | ||||||||||
2018 - Quotas (UHJA) - 2018-30 | 227 | 227 | 227 | 227 | 227 | 227 | - | Jul-17 | 206.3 | 196.8 |
2018 - Quotas (UHMI) - 2018-30 | 132 | 132 | 132 | 132 | 132 | 132 | - | Jul-17 | 239.6 | 228.6 |
| Energy Balance
17
+ Bilateral Sales | 2,888 | 2,640 | 2,137 | 1,640 | 868 | 690 | ||
= Total Sales (B) | 4,737 | 4,479 | 3,950 | 3,443 | 2,671 | 2,493 | ||
- Structural GSF Hedge (0.80) | 521 | 521 | 521 | 521 | 521 | 521 | ||
Balance (A - B) | 120 | 345 | 748 | 1,243 | 1,909 | 1,983 | ||
Sales average net price (R$/MWh) 2, 3: | 223.0 | 222.5 | 228.2 | |||||
Purchases average net price (R$/MWh) 4: | 161.5 | 156.3 | 166.0 |
1 XXXX-YY-WWW-ZZ, where:
XXXX year of auction
EE = existing energy or NE = new energy WWWW year of delivery start
supply contract duration (in years)
2 Sales price, including trading operations, is net of ICMS and taxes over revenue (PIS/Cofins, R&D), i.e. future inflation is not considered.
3 Disconsidering sales for quota regime (Jaguara and Miranda HPPs).
4 Purchase net prices, considering trading operations and benefits from PIS/Cofins credits, i.e. future inflation is not considered.
Notes:
The balance refers to the settlement point (net of losses of internal consumption of the plant).
The average prices are considered simply estimates and are based on financial planning revisions, not capturing volume changes, which are updated quarterly.
Does not include hydroelectric assets Santo Antônio do Jari and Cachoeira Caldeirão which are in the process of acquisition.
Earnings Release 2Q25 ENGIE Brasil Energia S.A.
Economic-Financial Performance | Results by segment - 2Q25 X 2Q24 | R$ million | |||||||
Net operating revenue | 2,280 | 740 | 66 | - | 3,086 | ||
Operational costs | (1,110) | (482) | (66) | - | (1,658) | ||
Gross income | 1,170 | 258 | - | - | 1,428 | ||
Selling, general and administrative expenses | (131) | (6) | (2) | - | (139) | 18 | |
Other operating revenues, net | 8 | 40 | - | - | 48 | ||
Disposal of subsidiary | 5 | - | - | - | 5 | ||
Equity income | - | - | - | 199 | 199 | ||
Income (loss) before financial results and taxes | 1,052 | 292 | (2) | 199 | 1,541 | ||
2Q24 | |||||||
Net operating revenue | 2,452 | 296 | 54 | - | 2,802 | ||
Operational costs | (985) | (65) | (59) | - | (1,109) | ||
Gross income (loss) | 1,467 | 231 | (5) | - | 1,693 | ||
Selling, general and administrative expenses | (112) | (8) | (2) | - | (122) | ||
Other operating expenses, net | (37) | - | - | - | (37) | ||
Impairment reversal | 31 | - | - | - | 31 | ||
Disposal of subsidiary | (9) | - | - | - | (9) | ||
Disposal of equity interest in a jointly controlled subsidiary | - | - | - | (13) | (13) | ||
Equity income | - | - | - | 152 | 152 | ||
Income (loss) before financial results and taxes | 1,340 | 223 | (7) | 139 | 1,695 | ||
Change | |||||||
Net operating revenue | (172) | 444 | 12 | - | 284 | ||
Operational costs | (125) | (417) | (7) | - | (549) | ||
Gross income | (297) | 27 | 5 | - | (265) | ||
Selling, general and administrative expenses | (19) | 2 | - | - | (17) | ||
Other operating revenues (expenses), net | 45 | 40 | - | - | 85 | ||
Impairment reversal | (31) | - | - | - | (31) | ||
Disposal of subsidiary | 14 | - | - | - | 14 | ||
Disposal of equity interest in a jointly controlled subsidiary | - | - | - | 13 | 13 | ||
Equity income | - | - | - | 47 | 47 | ||
Income (loss) before financial results and taxes | (288) | 69 | 5 | 60 | (154) | ||
Electric energy | ||
Generation¹ Transmission Trading Gas Consolidated transportation | ||
2Q25 | ||
¹ Generation and sale of electric energy from the Company's portfolio ("Generation").
The Company's financial result is not allocated by segment since Management administers the cash flow on a consolidated and corporate basis.
Net Operating Revenue
| Operating revenue by segment - 2Q25 X 2Q24 | R$ million
Electric Energy | ||
Generation Transmission Trading Consolidated | ||
2Q25 | ||
Regulated contracting environment¹ | 1,022 | - | - | 1,022 | |
Free contracting environment² | 994 | - | - | 994 | |
Construction revenue | - | 455 | - | 455 | |
Remuneration of concession assets | 122 | 255 | - | 377 | |
Transactions in the short-term market | 89 | - | - | 89 | |
Service rendered revenue | 38 | 30 | - | 68 | |
Energy trading operations | - | - | 66 | 66 | |
Indemnifications | 1 | - | - | 1 | |
Other revenues | 14 | - | - | 14 | |
Net operating revenue | 2,280 | 740 | 66 | 3,086 | |
2Q24 | |||||
Regulated contracting environment | 1,017 | - | - | 1,017 | |
Free contracting environment | 937 | - | - | 937 | |
Construction revenue | - | 55 | - | 55 | |
Remuneration of concession assets | 121 | 221 | - | 342 | |
Service rendered revenue | 37 | 20 | - | 57 | |
Transactions in the short-term market | 71 | - | 1 | 72 | |
Energy trading operations | - | - | 53 | 53 | |
Indemnifications | 262 | - | - | 262 | |
Other revenues | 7 | - | - | 7 | |
Net operating revenue | 2,452 | 296 | 54 | 2,802 | |
Change | |||||
Regulated contracting environment | 5 | - | - | 5 | |
Free contracting environment | 57 | - | - | 57 | |
Construction revenue | - | 400 | - | 400 | |
Remuneration of concession assets | 1 | 34 | - | 35 | |
Service rendered revenue | 1 | 10 | - | 11 | |
Transactions in the short-term market | 18 | - | (1) | 17 | |
Energy trading operations | - | - | 13 | 13 | |
Indemnifications | (261) | - | - | (261) | |
Other revenues | 7 | - | - | 7 | |
Net operating revenue | (172) | 444 | 12 | 284 | |
19
1 Distribution companies.
2 Free consumers and trading companies.
In 2Q25, net operating revenue increased 10.1% (R$ 284 million) compared with 2Q24 from R$ 2,802 million to R$ 3,086 million.
This variation arises largely from the following effects: (i) an increase of R$ 444 million (150.0%), mainly due to the evolution in the construction of the Asa Branca Transmission System which had an impact on growth reported in net operating revenue for the transmission segment; (ii) decrease of R$ 172 million (7.0%) in net operating revenue of the energy generation and sales from the portfolio segment, essentially due to the booking of indemnities for noncompliance with contractual conditions by the supplier responsible for the construction of the Santo Agostinho Wind Complex in 2Q24; and (iii) an increase of R$ 12 million (22.2%) in the trading segment. More details on the transmission and trading segments are described below under specific headings.
| Net Operating Revenue Change by Segment | R$ million
18
12
444
+10.1%
3,086
2,802
9
54
(2%)
62
2,452
(88%)
2,280
(74%)
(2%)
66
740
(24%)
(261)
296
(11%)
20
NOR 2Q24
Indemnity
Price and sales volume
CCEE Others Trading
Transmission
NOR 2Q25
Generation and portfolio sale Trading Transmission
Comments on Variation in Net Operating Revenue
Generation and Sales of Energy from the Portfolio
| Net Average Selling Price and Sales Volume
The average selling price of energy, net of charges on revenue and trading operations was R$ 217.01/MWh in 2Q25. This was
1.6% lower than 2Q24, when average selling prices stood at R$ 220.57/MWh.
During the course of the years 2024 and 2025, there were reimbursements due to the delivery of wind and solar power in amounts lower than in the relevant regulated environment agreements signed with the distributors. Excluding the impact from the reimbursements during the quarters, the net average selling price of energy fell from R$ 225.73/MWh in 2Q24 to R$ 225.14/MWh in 2Q25, a reduction of 0.3%.
The price reduction between comparative periods under analysis was largely due to: (i) the continuous improvement in hydrological conditions recorded over the past few years combined with the increase in the supply of renewable energy and the growth of distributed generation, factors contributing to the lower energy prices in the Free Contracting Environment (ACL). In addition, despite the 2024 deterioration in the hydrological scenario triggering an increase in energy prices in the market, impacts in 2Q25 were of little significance due to the low level of uncontracted energy in our portfolio; (ii) the increase in previously cited reimbursements; and partially attenuated by (iii) monetary restatement of current long-term agreements.
The volume of energy sold in contracts, net of trading operations, increased from 8,864 GWh (4,058 average MW) in 2Q24 to
9,290 GWh (4,254 average MW) in 2Q25, a growth of 426 GWh (196 average MW), or 4.8% between the comparable periods.
The increase in energy sales volumes in the quarter was driven substantially by stronger sales in the free contracting environment, in turn, a reflection of an increase in proprietary installed capacity between the periods analyzed with the finalization of the entry into commercial operation of the Santo Agostinho Wind Complex in the second half of 2024 as well as the entry into partial commercial operation of the Serra do Assuruá Wind Complex and the Assú Sol Photovoltaic Complex during 2024 and the first half of 2025, respectively, but attenuated by the decrease in sales volume to the distributors due to the strategy of seasonal weighting.
The variations in sales volumes and in average selling prices combined produced an increase of R$ 62 million in the Company's
net operating revenue.
-3.9%
-1.6%
+4.8%
| Net Average Selling Price1
| Sales Volume2
4,058
4,254
4,346
3,960
+9.7%
220.6
217.0
224.3
215.5
2Q24 2Q25 6M24 6M25
1 Net of sale taxes and trading operations.
2Q24 2Q25 6M24 6M25 21
2 Net of trading operations.
| Energy Transactions
Regulated Contracting Environment:
Revenue from sales to the distribution companies was R$ 1,022 million in 2Q25, R$ 5 million (0.5%) greater than the R$ 1,017 million reported for 2Q24. The variation reflects the following effects: (i) an increase of R$ 18 million with the growth of 1.8% in the net average selling price; and (ii) the reduction of R$ 13 million as a result of the decrease of 45 GWh (20 average MW) in volumes sold.
The reduction in sales volume between the quarters compared is mainly a reflection of the seasonal weighting of sales. The increase in the net average selling price between quarters under analysis was largely due to: (i) the monetary restatement of the selling prices of existing contracts between the compared periods; and attenuated by the (ii) the increase in reimbursements already mentioned above.
Excluding the impact of the aforesaid reimbursements, the net average selling price to distribution companies would have increased by 4.6% in the quarters.
Free Contracting Environment:
Revenue from sales to free consumers and trading companies increased by R$ 57 million (6.1%) between the quarters under analysis from R$ 937 million in 2Q24 to R$ 994 million in 2Q25. The variation is the result of the increase of 471 GWh (216 average MW) in energy sales volume (R$ 80 million), attenuated by a decrease of 2.6% in net average selling price (R$ 23 million).
The variation in energy volume sold is due in large part to startup in operations at the complexes mentioned under the previous heading resulting in greater available energy in the Company's portfolio. Conversely, the reduction in net average selling price was a reflection of the decrease in energy prices on the free market, in turn in the light of an improved hydrological scenario as explained above combined with the increase in renewable energy supply over recent years, factors attenuated by monetary reinstatement of contracts which are still current.
| Transactions in the Short-term Energy Market
In 2Q25, revenue generated in the short-term market was R$ 89 million as opposed to 2Q24 when this item recorded a revenue of R$ 71 million and therefore representing an increase of R$ 18 million (25.4%) between the compared quarters. Further explanations on these operations and on variations may be obtained in "Details of short-term operations".
| Indemnifications
In 2Q24, revenue includes indemnification for breach of contractual conditions incurred by the supplier responsible for the construction of the Santo Agostinho Wind Complex and mainly related to delays in the delivery of the work, in the amount of R$ 262 million. This amount compensated the Company for revenue foregone as a result of the postponement in the start of operations.
Operational Costs
| Costs by segment - 2Q25 x 2Q24 | R$ million
Electric Energy | ||
Generation Transmission Trading Consolidated | ||
2Q25 | ||
Construction costs | - | 462 | - | 462 | |
Depreciation and amortization | 315 | 4 | - | 319 | |
Electric power purchases | 205 | - | 64 | 269 | |
Charges for the use of power grid and connection | 194 | - | - | 194 | |
Materials and third-party services | 133 | 11 | - | 144 | |
Transactions in the short-term market | 117 | - | - | 117 | |
Personnel | 66 | 5 | - | 71 | |
Insurance | 36 | 1 | - | 37 | |
Royalties | 17 | - | - | 17 | |
Unrealized losses on trading operations | - | - | 2 | 2 | |
Other operational costs, net | 27 | (1) | - | 26 | |
Operational costs | 1,110 | 482 | 66 | 1,658 | |
2Q24 | |||||
Construction costs | - | 48 | - | 48 | |
Depreciation and amortization | 251 | 4 | - | 255 | |
Electric power purchases | 290 | - | 51 | 341 | |
Charges for the use of power grid and connection | 177 | - | - | 177 | |
Materials and third-party services | 94 | 8 | - | 102 | |
Transactions in the short-term market | 15 | - | - | 15 | |
Personnel | 63 | 3 | - | 66 | |
Insurance | 29 | - | - | 29 | |
Royalties | 51 | - | - | 51 | |
Unrealized losses on trading operations | - | - | 8 | 8 | |
Other operational costs, net | 15 | 2 | - | 17 | |
Operational costs | 985 | 65 | 59 | 1,109 | |
Change | |||||
Construction costs | - | 414 | - | 414 | |
Depreciation and amortization | 64 | - | - | 64 | |
Electric power purchases | (85) | - | 13 | (72) | |
Charges for the use of power grid and connection | 17 | - | - | 17 | |
Materials and third-party services | 39 | 3 | - | 42 | |
Transactions in the short-term market | 102 | - | - | 102 | |
Personnel | 3 | 2 | - | 5 | |
Insurance | 7 | 1 | - | 8 | |
Royalties | (34) | - | - | (34) | |
Unrealized losses on trading operations | - | - | (6) | (6) | |
Other operational costs, net | 12 | (3) | - | 9 | |
Operational costs | 125 | 417 | 7 | 549 |
22
Operational costs increased by R$ 549 million (49.5%) between the compared quarters from R$ 1,109 million in 2Q24 to R$ 1,658 million in 2Q25. This variation was substantially due to a combination of the following factors: (i) a growth of R$ 417 million (641.5%) in the costs of the transmission segment, mainly increased construction costs of the Asa Branca Transmission System; (ii) an increase of R$ 125 million (12.7%) in the costs of the energy generation and sale segment of the Company's portfolio; and (iii) an increase of R$ 7 million (11.9%) in the costs of energy trading operations.
| Operational Costs Change | R$ million
102
482
(29%)
64
414
1,658
66
(4%)
39
22 -6
17
-85 13
+49.5%
1,109
-34
3
59
65
985
1,110 (67%)
23
Cost 2Q24
CCEE
Depreciation and amortization
Materials and third-party services
Charges for power grid and connection
Purchases for portfolio
Royalties
Other
Construction costs
Cost 2Q25
Generation and sales from portfolio Transmission Trading
The change in the energy generation and sales from the portfolio segment is essentially due to the movement of the main components as follows:
Comments on Variations in Operational Costs
Generation and Energy Sales from the Portfolio
Depreciation and amortization: an increase of R$ 64 million (25.5%) between the quarters under analysis. The variation reflects largely (i) the entry into partial commercial operation of the Serra do Assuruá Wind Complex and the Assú Sol Photovoltaic Complex as from August 2024 and January 2025, respectively; (ii) the full startup in commercial operations of the wind farms comprising the Santo Agostinho Wind Complex during the course of 2024; and (iii) the initial amortization of the right of use of the intangible assets linked to the acquisition of the Juazeiro, São Pedro, Sol do Futuro, Sertão Solar and Lar do Sol photovoltaic complexes ("Photovoltaic Complexes").
Energy purchases: between 2Q24 and 2Q25, there was a reduction of R$ 85 million (29.3%) in energy purchases largely driven by the combination of the decrease of 374 GWh (171 average MW) in the volume of energy purchased (R$ 58 million) and a reduction of 11.1% in the net average purchase price (R$ 27 million). The variation in volume is a reflection of the portfolio management of the Company given an increase in proprietary installed capacity over recent years, in turn reducing the need for energy purchases from third parties between the periods in analysis. The variation in average purchase prices reflects an improvement in the hydrological scenario prevailing on contracting dates as mentioned above, combined with the increase in supply of renewable energy over recent years, factors which have depressed energy prices in the free contracting market.
Charges for use of the electric energy network and connection: increase of R$ 17 million (9.6%) between the quarters analyzed, resulting mainly from: (i) the entry into partial commercial operation of the Serra do Assuruá Wind Complex and the Assú Sol Photovoltaic Complex; and (ii) the annual transmission and distribution tariff readjustment.
Third party material and services: increase of R$ 39 million (41.5%) between comparable quarters. The main drivers are the result of the following factors: (i) entry into commercial operation of the Serra do Assuruá and Santo Agostinho wind complexes and the Assú Sol Photovoltaic Complex; (ii) the acquisition of the Photovoltaic Complexes; and (iii) provision of consulting and advisory services.
Transactions in the short-term energy market: the costs of these transactions posted an increase of R$ 102 million (680.0%) between the quarters analyzed. More explanations on these operations and in relation to the variation are to be found under the heading "Details of short-term operations."
Financial compensation for the use of water resources (royalties): decrease of R$ 34 million (66.7%) basically due to a decline in generation from the hydropower plants during 2Q25, when compared with 2Q24, but partially offset by the annual readjustment of royalties.
Other costs in this segment showed no significant variations between the quarters under analysis.
Operational Result from the Energy Transmission SegmentThe Company has primary responsibility for the construction and installation of infrastructure pertaining to the Gralha Azul, Novo Estado, Gavião Real, Asa Branca and Graúna transmission systems and is exposed to the risks and benefits of these constructions. Consequently, based on prevailing accounting practices, the Company books revenue over the course of the implementation of the transmission infrastructure for an amount corresponding to the construction costs plus a gross margin on the construction services provided. Expenditures incurred in the construction are recognized in the cost of the transmission infrastructure. The Annual Allowed Revenue (RAP) is received once the transmission system goes into commercial operations. Thus, only resources generated from operational activities are received from then onwards. The Gralha
Azul and Novo Estado transmission systems went into full commercial 24
operations on February 19 and 27, 2023, respectively. In addition, on July 8, 2024, the Company finalized the implementation of the Gavião Real Transmission System project with the complete energization as incorporated in the Delivery and Acceptance Certificate (TLD) issued by the National System Operator (ONS) on July 12, 2024.
The gross result from the energy transmission segment was a positive R$ 258 million in 2Q25, an increase of R$ 27 million (11.7%) in relation to the same quarter in 2024, the value of which was R$ 231 million. The variations are largely a reflection of (i) growth of R$ 34 million (15.4%) in the remuneration of concessions assets mainly due to the increase in the nominal outstanding as a result of the progress made in the construction of the Asa Branca Transmission System, attenuated by the reduction of inflationary indices between the comparable quarters; and (ii) the negative effect of R$ 14 million (200.0%) in the variation of the net result between revenues and costs of construction (increases of R$ 400 million and R$
414 million, respectively), principally reflecting the advances of work on the Asa Branca Transmission System.
RAP value, net of PIS and Cofins taxes, received in 2Q25 was R$ 190 million, (R$ 191 million in 2Q24), being R$ 160 million (R$ 171 million in 2Q24) corresponding to the contract asset amortization, registered as a counterbalancing item to the contract asset, and R$ 30 million (R$ 20 million in 2Q24) relative to revenue from O&M services rendered.
Below is the composition of the regulatory transmission Ebitda:
(in R$ million) | 2Q25 | 2Q24 | Change |
RAP, net of PIS and Cofins | 190 | 191 | (1) |
Operational costs | (16) | (13) | (3) |
Selling, general and administrative expenses | (6) | (8) | 2 |
Other operational revenues, net | 1 | - | 1 |
Regulatory transmission Ebitda | 169 | 170 | (1) |
The Company operates in the physical energy trading market to leverage results from energy price variations within pre-set limits of risk. Energy trading operations are transacted in an active market and for accounting purposes are defined as financial instruments according to their fair value. This is principally due to the absence of any commitment to match purchase and sale operations, flexibility being permitted to manage the contracts and obtain results through price variations in the market.
There was a positive variation of R$ 5 million in the gross result between the quarters, due to the increase of R$ 6 million resulting from the mark-to-market of the transactions for future delivery in the comparison between periods - that is the difference between the contracted and market prices, attenuated by the negative impact of R$ 1 million in short-term transactions.
Details of Short-Term OperationsShort-term operations are classified as energy purchase or sale operations, the principal objective being the management of the Company's exposure on the CCEE. Consequently, the price of these operations is characterized by the linkage with the Price for Settlement of Differences (PLD). This item also includes the transactions conducted through the CCEE, given their volatile and seasonal nature, therefore, short-term, of the results originating from accounting movement in the CCEE. Additionally, the long and short positions are settled at the PLD, thus, similar to the short-term operations described above.
In relation to the transactions conducted through the CCEE, the various monthly credit or debit entries to the account of a Board agent are summarized in a single billing as a receivable or a payable. This therefore requires an entry to either an income or an expense item. In this context, it is worth pointing out that due to adjustments in the Company's portfolio management strategy, changes have been taking place in the profile of the mentioned billings. Such fluctuations complicate the direct comparison of the elements comprising each billing for the periods being analyzed - the reason for including this specific topic. The strategy allows us to analyze the fluctuations of the principal elements involved in spite of allocation being either to an income or expenses
account according to the credit or debit nature of the billing to which they relate. 25
Generically, these elements are revenues or expenses arising, for example, (i) from the application of the Energy Reallocation Mechanism (MRE); (ii) from the Generation Scaling Factor (GSF), triggered when generation of plants, part of the MRE, is smaller or greater (Secondary Energy) than the allocated energy; (iii) from the so-called "submarket risk"; (iv) dispatch driven by the Risk Aversion Curve (CAR); (v) the application of System Service Charges (ESS), resulting in dispatch which diverges from the thermal plants order of merit; and (vi) naturally, exposure (a short or long position in the monthly accounting) and settled at the PLD.
| Net Result of Short-term Operations | R$ million
Generation Trading Consolidated | ||||
Net operating revenue | 2Q25 | 89 | - | 89 |
Operational costs | (117) | - | (117) | |
Net result | (28) | - | (28) | |
2Q24 | ||||
Net operating revenue | 71 | 1 | 72 | |
Operational costs | (15) | - | (15) | |
Net result | 56 | 1 | 57 | |
Change | ||||
Net operating revenue | 18 | (1) | 17 | |
Operational costs | (102) | - | (102) | |
Net result | (84) | (1) | (85) | |
In 2Q25 and 2Q24, net results (the difference between revenues and costs - less taxes) from short-term transactions - more especially conducted within the scope of the CCEE - were a negative R$ 28 million and a positive R$ 57 million, respectively. The amount represents a reduction of R$ 85 million between the compared periods, R$ 84 million reflecting the result of transactions in the generation and sales from the portfolio segment and R$ 1 million from the energy trading segment.
These variations were primarily the consequence of a combination of the following factors: (i) negative impact due to the reduction in the MRE (GSF) Adjustment Factor, in view of the allocation of physical guarantee and the generation of participating plants (the average GSF falling from 99.1% in 2Q24 to 95.3% in 2Q25), combined with an increase in Price for Settlement of Differences (PLD); (ii) the negative effect on MRE by virtue of hydropower generation inferior to commercial capacity and the consequent increase in value for reimbursing other members of the MRE; and attenuated (iii) by the increase in free energy due to the seasonal allocation strategy. The negative effects were offset by the positive variation in operations for closing off the month end, rebooking and modulations between the quarters under analysis.
In December 2024, Aneel established PLD maximum and minimum limits for 2025 at R$ 751.73/MWh and R$ 58.60/MWh, respectively. The following table shows average PLD values for the submarkets in which the Company operates, in MWh.
Average PLD in R$/MWh | 2Q25 | 2Q24 | Chg. (%) |
South | 224.16 | 62.85 | 256.7% |
Southeast/Center-West | 216.49 | 62.85 | 244.5% |
Northeast | 154.39 | 62.85 | 145.6% |
The Company reported an increase in selling, general and administrative expenses worth R$ 17 million (15.2%) between 2Q25 and 2Q24. Variations between the quarters analyzed largely arose from the growth in the generation segment in the amount of R$ 19 million, affected substantially by higher labor expenses due to the annual readjustment in employee remuneration and benefits and hiring between the compared quarters together with an increase for services rendered.
Other operational revenues (expenses), netIn 2Q25, the Company booked the amount of R$ 5 million in the generation segment with respect to the agreement between shareholders of Ibitiúva Bioenergética. Again, in the generation segment in 2Q24, R$ 31 million was booked in relation to the writing off of assets pertaining to the Paracatu Photovoltaic Complex.
Sale of a corporate stake and reversal of impairment 26In 2Q25, the Company booked R$ 5 million with respect to receivables set forth in the divestment agreement of the Pampa Sul subsidiary, concluded in 2023.
In 2Q24, the Company booked R$ 31 million in the form of a reversal of an impairment previously booked due to the incident at the Paracatu Photovoltaic Complex. This reversal was made in the light of the writing off of the assets.
On June 28, 2024, following compliance with conditions precedent, the operation for the sale of the Company's stake in the Lages Bioenergética Ltda. ("Lages") subsidiary was concluded. As of this date the corporation ceased to be controlled by the Company and is no longer consolidated. The result of the asset's sale, net of selling costs was a negative R$ 9 million in 2Q24.
Divestment of Equity Interest in a Joint VentureIn 2Q24, the Company recognized the amount of R$ 13 million related to the divestment of its equity interest in the jointly controlled entity, TAG.
Equity Income - Gas TransportationThe Company holds a 17.5% direct corporate stake in TAG. TAG's equity income result for the quarters under analysis is composed of the following items:
2Q25 2Q24
Income statement (in R$ million)
100%
Company's
share1
100%
Company's
share1
Net operational revenue 2,365 414
Costs of services provided (593) (104)
Gross income 1,772 310
General and administrative expenses (42) (7)
Income before financial result and taxes 1,730 303
Financial result (328) (58)
Income before taxes 1,402 245
Income tax and social contribution (265) (46)
2,169 380
(566) (99)
1,603 281
(55) (10)
1,548 271
(424) (74)
1,124 197
(252) (45)
TAG's net income
1,137
199
872
152
1Until January 9, 2024, ENGIE Brasil Energia held 32.5% of TAG shares, and from January 10, 2024 it held 17.5% of shares.
The reconciliation of TAG's Ebitda is shown in the following table:
2Q25 2Q24
Ebitda (in R$ million) | 100% | Company's share | 100% | Company's share |
Income before financial result and taxes | 1,730 | 303 | 1,548 | 271 |
Depreciation and amortization | 187 | 33 | 166 | 29 |
Amortization of mais valia | 150 | 26 | 148 | 26 |
Ebitda¹ | 2,067 | 362 | 1,862 | 326 |
Ebitda Margin 87.4% 85.8%
¹ In accordance with the guidelines established in CVM Resolution No. 156 (RCVM 156) and Circular Letter CVM/SNC/SEP No. 01/2023, of June 23, 2022 and February 13, 2022, respectively.
Between 2Q24 and 2Q25, the equity income result increased by R$ 47 million (30.9%) from R$ 152 million to R$ 199 million, respectively. The variation reflects the increase in net income at TAG.
In relation to the increase in the result at TAG, the variation was a consequence to a large degree of: (i) the increase in Ebitda in turn due to (i.i) monetary restatement of transportation tariffs reflecting the positive variation in the IPCA, IGPM and US Dollar; (i.ii) the startup of the Sergipe Connection System operation; and attenuated (i.iii) by the decrease in the foreign currency variation of revenue from the GASENE system's transportation agreement; (ii) the reduction in net financial expenses, mainly the result of (ii.i) the adjustment in present value relating to the refinancing of the 1st debentures issue; and partially offset (ii.ii) by the appreciation of the US Dollar, with a consequent increase in the balance of debt abroad; and attenuated by (iii) the increase in the depreciation of new fixed assets.
| Balance Sheet
TAG's principal asset and liability groups as of June 30, 2025 and December 31, 2024 were as follows:
Balance Sheet | 06/30/2025 | 12/31/2024 |
ASSETS | ||
Current assets | 2,665 | 4,443 |
Cash and cash equivalents | 459 | 2,325 |
Accounts receivable from clients | 1,943 | 1,830 |
Other current assets | 263 | 288 |
Non-current assets | 28,629 | 28,955 |
Restricted deposits | 399 | 326 |
Other non-current assets | 160 | 155 |
Property, plant and equipment | 25,317 | 25,727 |
Intangible | 2,753 | 2,747 |
Total | 31,294 | 33,398 |
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities | 2,941 | 4,377 |
Debt instruments | 2,106 | 3,432 |
Derivative financial instruments - hedge | 32 | 7 |
Other current liabilities | 803 | 938 |
Non-current liabilities | 22,151 | 22,409 |
Debt instruments | 15,285 | 16,419 |
Derivative financial instruments - hedge | 257 | 77 |
Deferred income taxes and social contribution | 5,884 | 5,204 |
Other non-current liabilities | 725 | 709 |
Shareholders' equity | 6,202 | 6,612 |
Total | 31,294 | 33,398 |
27
Ebitda and Ebitda Margin
| Ebitda by segment - 2Q25 x 2Q24 | R$ million
Electric Energy | |
Generation Transmission Trading Gas Consolidated Transportation | |
2Q25 | |
Income (loss) before financial results and taxes | 1,052 | 292 | (2) | 199 | 1,541 |
Depreciation and amortization | 326 | 4 | - | - | 330 |
Ebitda1 | 1,378 | 296 | (2) | 199 | 1,871 |
Disposal of subsidiary | (5) | - | - | - | (5) |
Adjusted Ebitda | 1,373 | 296 | (2) | 199 | 1,866 |
Adjusted Ebitda margin | 60.2% | 40.0% | (3.0%) | - | 60.5% |
2Q24 | |||||
Income (loss) before financial results and taxes | 1,340 | 223 | (7) | 139 | 1,695 |
Depreciation and amortization | 262 | 4 | - | - | 266 |
Ebitda | 1,602 | 227 | (7) | 139 | 1,961 |
Impairment reversal | (31) | - | - | - | (31) |
Disposal of subsidiary | 9 | - | - | - | 9 |
Disposal of equity interest in a jointly controlled subsidiary | - | - | - | 13 | 13 |
Adjusted Ebitda | 1,580 | 227 | (7) | 152 | 1,952 |
Adjusted Ebitda margin | 64.4% | 76.7% | (13.0%) | - | 69.7% |
Change | |||||
Income (loss) before financial results and taxes | (288) | 69 | 5 | 60 | (154) |
Depreciation and amortization | 64 | - | - | - | 64 |
Ebitda | (224) | 69 | 5 | 60 | (90) |
Impairment reversal | 31 | - | - | - | 31 |
Disposal of subsidiary | (14) | - | - | - | (14) |
Disposal of equity interest in a jointly controlled subsidiary | - | - | - | (13) | (13) |
Adjusted Ebitda | (207) | 69 | 5 | 47 | (186) |
Adjusted Ebitda margin | (4.2 p.p.) | (36.7 p.p.) | 10.0 p.p. | - | (9.2 p.p.) |
28
¹ In accordance with the guidelines established in CVM Resolution No. 156 (RCVM 156) and Circular Letter CVM/SNC/SEP No. 01/2023, of June 23, 2022 and February 13, 2022, respectively.
60.5%
69.7%
Between 2Q25 and 2Q24, adjusted Ebitda fell R$ 86 million (4.4%) from R$ 1,952 million in 2Q24 to R$ 1,866 million in 2Q25. The variation was the consequence of the negative effect of R$ 207 million (13.1%) in the electric energy generation and sales from the Company's portfolio segment. However, offset by the combination of the following positive effects: (i) R$ 69 million (30.4%) from the energy transmission segment; (ii) R$ 47 million (30.9%) due to the improved result of the corporate stake in the jointly controlled company - TAG; and (iii) R$ 5 million (71.4%) from the energy trading segment.
The key variations in the adjusted Ebitda are in the electric energy generation and sales segment, indicated in the item (i) above), negative effects of which were: (i) a reduction of R$ 261 million in revenues from indemnities; (ii) R$ 84 million from a negative impact in transactions executed in the short-term market; (iii) an increase of R$ 39 million in the cost of material and third party services; and iv) R$ 4 million relative to other operational costs and administrative expenses. These effects were offset by the following variations with positive effects: (i)
| Adjusted Ebitda1 and Ebitda Margin | R$ million
1,359
3,915
9
+3.7%
1,961
9
1,871
5
-4.4%
3,767
1,952
1,866
3,906
5,126
64.0%
69.6%
a reduction of R$ 85 million in energy purchases; (ii) R$ 62 million from the combination of variations in the volume of
2Q24 2Q25
6M24 6M25
energy sold and the net average selling price; and (iii) the decrease of R$ 34 million in royalties due to lower generation from the hydropower plants in 2Q25 as compared with 2Q24.
1 Adjusted Ebitda: net income + income tax and social contribution + financial results + depreciation and amortization + impairment + non recurrent effects.
In addition, in 2Q25, the adjusted Ebitda was positively impacted by the transmission segment, the effects of which were largely a combination of factors as follows: (i) R$ 39 million with a positive effect in the light of expectations from the conclusion of the revision of the investment structure and the rate of capital remuneration , resulting in modifications to future Annual Allowed Revenue (RAP); (ii) R$ 34 million from an increase in the remuneration of the concession asset; (iii) R$ 14 million decrease in the variation in the net result from construction revenues and costs; (iv) elevation of R$ 7 million in the O&M (RAP of O&M, net of costs) margin; and (v) reduction of R$ 3 million in the selling, general and administrative expenses as well as other operational revenues and expenses.
(in R$ million) | 2Q25 | 2Q24 | Chg. (%) | 6M25 | 6M24 | Chg. (%) |
Recurrent net income | 567 | 871 | (34.9) | 1,394 | 2,555 | (45.4) |
(+) Income tax and social contribution | 168 | 307 | (45.3) | 438 | 1,018 | (57.0) |
(+) Net financial result | 806 | 517 | 55.9 | 1,430 | 1,042 | 37.2 |
(+) Depreciation and amortization | 330 | 266 | 24.1 | 653 | 511 | 27.8 |
Ebitda | 1,871 | 1,961 | (4.6) | 3,915 | 5,126 | (23.6) |
Non-recurrent effects | ||||||
(+) Impairment reversal | - | (31) | (100.0) | - | (31) | (100.0) |
(+) Disposal of subsidiary | (5) | 9 | (155.6) | (9) | 9 | (200.0) |
(+) Disposal of equity interest in a jointly controlled subsidiary | - | 13 | 100.0 | - | (1,337) | (100.0) |
Adjusted Ebitda | 1,866 | 1,952 | (4.4) | 3,906 | 3,767 | 3.7 |
Statutory transmission Ebitda (IFRS) | (296) | (227) | 30.4 | (644) | (478) | 34.7 |
Regulatory transmission Ebitda (RAP) | 169 | 170 | (0.6) | 340 | 324 | 4.9 |
Statutory quota holders Ebitda (IFRS) | (190) | (191) | (0.5) | (420) | (394) | 6.6 |
Regulatory quota holders Ebitda | 166 | 160 | 3.8 | 341 | 325 | 4.9 |
Ebitda adjusted by transmission and quota effects | 1,715 | 1,864 | (8.0) | 3,523 | 3,544 | (0.6) |
To enable the reconciliation of net income with Ebitda as well as the impacts of regulatory adjustments in transmission quota holders, we present the following table:
29
| Ebitda Change | R$ million
-4.6%
-4.4%
-8.0%
1,961
13 (22) (9)
1,952
(31)
(88)
1,864
170
(9%)
152
(8%)
147
(261)
151
1,866
1,871
5
1,715
(84)
3
(1)
47
1,595
(81%)
1,573
(81%)
1,542
(83%)
1,347
(79%)
1,371
(73%)
1,376
(74%)
199
(12%)
169
(10%)
199
(11%)
296
(16%)
199
(11%)
296
(16%)
152
(8%)
227
(12%)
139
(7%)
227
(12%)
127
24
(57)
Ebitda 2Q24 Non-recurring
Adjusted Ebitda 2Q24
IFRS*
adjustment
Ebitda adjusted by
Operating and
Indemnity
Short-term operations
Operating costs and
Transmission
Equity income
Ebitda adjusted by
IFRS*
adjustment
Adjusted Ebitda
Non-recurring Ebitda 2Q25
trans./quota commercial
(CCEE)
expenses
(TAG)
trans./quota
2Q25
2Q24
performance
2Q25
* IFRS: International Financial Reporting Standards.
1 Considering the result from generation and trading segments.
Generation and trading1
(in R$ million) | 2Q25 | 2Q24 | Chg. (R$) | 6M25 | 6M24 | Chg. (R$) |
Income from financial investments | 182 | 119 | 63 | 297 | 310 | (13) |
Other financial income | 31 | 25 | 6 | 59 | 46 | 13 |
Total financial income | 213 | 144 | 69 | 356 | 356 | - |
Debt: | ||||||
Interest | (383) | (245) | (138) | (671) | (508) | (163) |
Monetary restatement | (284) | (182) | (102) | (575) | (425) | (150) |
Other financial expenses, net | (214) | (49) | (165) | (190) | (103) | (87) |
Total financial expenses | (881) | (476) | (405) | (1,436) | (1,036) | (400) |
Concessions payable (Use of Public Asset): | ||||||
Monetary restatement | (16) | (62) | 46 | (107) | (115) | 8 |
Present value restatement | (122) | (123) | 1 | (243) | (247) | 4 |
Total concession payable expenses (Use of Public Asset) | (138) | (185) | 47 | (350) | (362) | 12 |
Financial result | (806) | (517) | (289) | (1,430) | (1,042) | (388) |
30
Financial Income: in 2Q25, financial income reached R$ 213 million, R$ 69 million or 47.9% more than R$ 144 million reported in 2Q24, mainly due to the increase of R$ 63 million in revenue from financial investments. Growth was largely driven by the increase in average outstandings held in the form of financial investments in the periods in question and by a higher CDI rate.
Financial Expenses: financial expenses in 2Q25 were R$ 881 million, that is, R$ 405 million or 85.1% greater than recorded in 2Q24 when expenses stood at R$ 476 million. The main variations were due to: (i) the negative variation of R$ 167 million in the adjustment to market value of debt instruments, net of hedge, posted to the other financial expenses net item; and (ii) the increase of R$ 240 million on debt between the analyzed quarters due to increases of (ii.i) R$ 102 million relative to monetary restatement due to the increase in outstanding debt between the periods under comparison mainly in respect of the Company's 12th, 13th and 14th debenture issues in July 2024, October 2024 and March 2025, respectively; and (ii.ii) R$ 138 million of interest on debt reflecting the above issues and the growth in CDI and TJLP (Long-Term Interest Rate) between periods.
Worthy of note is that in addition to the increase in debt interest recorded in the result, there was an increase of R$ 86 million (45.6%) in the capitalization of fixed assets due to the advance in work on the Serra do Assuruá Wind Complex and the Assú Sol Photovoltaic Complex.
Concession expenses payable (Use of a Public Asset): concession expenses payable fell by R$ 47 million (25.4%), and reaching R$ 138 million in 2Q25 as opposed to R$ 185 million in 2Q24 by virtue mainly of the decline of R$ 46 million of monetary restatement, in turn due largely a reflection of a reduction in IPCA and IGPM indices.
Income Tax and Social ContributionThe amount reported for Income Tax and Social Contribution (IR and CSLL) in 2Q25 was R$ 168 million, a variation of R$ 139 million (45.3%) when compared to R$ 307 million in the same quarter of 2024. The variation is mainly due to the reduction in pretax profits. Excluding non-recurring effects due to the reversing of impairment, the sale of a subsidiary and the divestment of a stake in a jointly controlled subsidiary, IR and CSLL expenses were down by R$ 148 million (47.1%) between quarters analyzed.
Earnings Release 2Q25
ENGIE Brasil Energia S.A.