Q2 2026 ENGIE Brasil Energia SA Earnings Call (English, Portuguese) Transcript

Aug 6, 2026 / 02:00 PM GMT

Release Date Price: R$29.91 (+0.27%)

Transcript

Key Points

Positve

ENGIE Brasil Energia SA (EGIEY) successfully integrated the Jirau hydropower plant, which has a 10% real return and is contracted for the long term, adding significant value to its portfolio.
The company prepaid BRL 2.2 billion in public asset use concessions, generating a net capital gain of BRL 1.3 billion and eliminating a high-cost liability (10% plus IPCA), which will boost future profits.
Adjusted EBITDA grew 17% quarter-on-quarter and 13% year-over-year, driven by new projects in generation and transmission, showcasing strong operational cash generation.
The merger of the Jadi energy company is expected to simplify the organizational structure and create operational efficiencies.
The company maintains a robust project pipeline, with the Azabranca transmission project's first sector already energized and contributing BRL 100 million in revenue, and the Grauna project progressing on schedule.
ENGIE Brasil Energia SA (EGIEY) is actively pursuing growth opportunities in batteries and new transmission auctions, leveraging its global experience and financial discipline.

Negative

The company continues to suffer from energy curtailment, which reached 20% in the second quarter, up from 19% in the previous quarter and 15-16% in the prior year, impacting generation volumes.
TAG's results declined to BRL 743 million from over BRL 1 billion last year due to an ongoing tariff review process, which is expected to conclude by the end of the year and may lead to lower future results.
The company's ESG indicators were negatively impacted, with a slight increase in minor accidents in the operational area and slower-than-desired progress on gender distribution due to male-dominated work at the AMAPA assets.
The company faces intense competition in the transmission and battery markets, which could pressure margins and make it harder to acquire assets at attractive prices.
The company is navigating a period of very high interest rates, which affects its net financial results and overall cost of capital.
The company's leverage remains at a high level of 3.1 times, and the payout ratio is at a minimum of 55%, limiting potential for higher dividend distributions in the near term.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

EGIE3.SA - Engie Brasil Energia SA
Q2 2026 ENGIE Brasil Energia SA Earnings Call (English, Portuguese)
Aug 06, 2026 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning and welcome to the NG Brazil Energia's second quarter 26 earnings result video conference. I'm Adriana Wagner, investor relations analyst at the company, and I would like to make a few announcements before we begin the video conference. At this moment, the people connected are in listener mode, ensuing this when we open the Q&A session. Participants can send their questions through the Zoom Q&A option. Please keep in mind that this video conference is being recorded. We have made available on our website www.ng.com.pr/investors the results presentation and the earnings release besides the complete interim financial statement and other documents filed at the CVM analysis of financial

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