By Brazil Stock Guide – ISA Energia Brasil SA’s profit rose in the first quarter as net revenue advanced and cost control helped offset higher financial expenses. The Brazilian power transmission company, traded on B3 under the tickers ISAE3 and ISAE4, reported adjusted net income of R$357.7 million, up 6% from a year earlier.
The company’s regulatory net revenue reached R$1.2 billion, an 8.3% increase from 1Q 2025, while EBITDA climbed 10.6% to R$1.0 billion. ISA Energia Brasil said its EBITDA margin rose to 83.3%, from 81.6% in the same period last year.
The results reflected growth in operating revenue, the energization of projects and gains from the company’s disciplined management of operating costs and expenses. PMSO, which includes personnel, materials, services and other expenses, totaled R$179 million, up just 0.7% year over year, below the 4.1% IPCA inflation rate over the last 12 months cited in the presentation.
ISA Energia also announced R$279 million in dividends in the quarter, equivalent to R$0.42 per share. Total shareholder distributions for fiscal year 2025 reached R$1.2 billion, with a regulatory payout of 75% and a dividend yield of 6.7%.
Investments and project execution
The company invested R$1.2 billion in the quarter, a 10.3% increase from 1Q 2025. About 70% of the amount went to greenfield projects, while 30% was directed to retrofitting and improvements.
ISA Energia said the energization of the Piraquê Block 2 and Jacarandá projects enabled annual allowed revenue of about R$330 million. Piraquê Block 2, located in Minas Gerais and Espírito Santo, accounted for R$314 million of that amount, while Jacarandá, in São Paulo, added R$16 million.
The company’s greenfield projects under construction include Piraquê, Serra Dourada and Itatiaia, with remaining capex of about R$5.0 billion from April 2026 through 2028. Its authorized retrofitting and improvement pipeline rose to R$7.2 billion in March 2026 from R$6.3 billion in December 2025.
Portfolio management and debt
ISA Energia highlighted an asset swap with AXIA Energia involving IE Madeira and IE Garanhuns. Under the transaction, the company will fully consolidate Madeira and divest its stake in Garanhuns, with a R$1.2 billion payment at closing. The pro forma net impact includes an additional R$343.3 million in net revenue and R$255.0 million in EBITDA.
Gross debt rose to R$15.4 billion in March 2026 from R$14.1 billion in December 2025. Net debt reached R$16.3 billion, up 1.8% from December, while leverage increased to 3.72 times net debt to last-12-month EBITDA from 3.63 times.
The company said its average debt term increased to 8.7 years, from 8.3 years in December, while the average cost of debt fell to 11.64% a year from 12.36%. ISA Energia also reported a R$3.9 billion exchange offer tied to its 21st debenture issuance and a R$1 billion 22nd debenture issuance in 2Q 2026.
ISA Energia said its investment case is supported by predictable inflation-protected revenue, energy-transition opportunities, a track record in execution, financial discipline and a long-term strategy focused on social and environmental impact.