Copel disclosed its third‑quarter 2025 financial results, reporting a 7.8% year‑over‑year increase in recurring EBITDA to R$1.3 billion, while recurring net income fell 36.5% to R$374.8 million. The decline was driven by higher financial expenses and increased debt servicing costs, offsetting the operational gains.
Total revenue rose 2.6% to BRL 6,811.18 million, up from BRL 5,735.61 million in the same quarter last year. Growth was supported by the generation and distribution segments, with the generation company’s EBITDA expanding 11.0% YoY and the distribution company’s EBITDA increasing 7.2%.
The generation unit benefited from higher output but faced higher curtailment costs, while the distribution unit saw a 1.7% increase in billed market revenue but incurred higher operating expenses. Together, these dynamics produced a modest top‑line gain but compressed the overall EBITDA margin from 26.6% to 19.9%.
CEO Daniel Laviero highlighted that Copel’s focus on sustainable value creation extends beyond cost cuts and asset sales. He noted that operational excellence and strategic portfolio optimization remain central to the company’s 2035 vision, underscoring a long‑term commitment to efficiency and growth.
Earnings per share of $0.132 surpassed the consensus estimate of $0.127 by $0.005, while revenue of $900.81 million exceeded the $897.38 million forecast by $3.43 million. Investors reacted positively to the earnings and revenue beats, but the significant drop in net income and a lower Altman Z‑Score raised concerns about financial resilience.
Copel maintained its 2025 guidance, reaffirming its commitment to the 2035 strategic plan and preparing for a tariff review in 2026. The company emphasized that its operational efficiencies and portfolio optimization will support continued profitability, even as it navigates the headwinds of higher financial costs and regulatory changes.
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