By Brazil Stock Guide – Axia Energia (B3: AXIA3), formerly Eletrobras, reported adjusted IFRS net income of R$1.251 billion in the fourth quarter of 2025, a 141% increase from R$518 million a year earlier, as tighter cost control, lower provisions and stronger transmission margins offset weaker generation revenue following asset sales.
Adjusted regulatory EBITDA rose 12.9% year-on-year to R$5.745 billion, supported by a 15.9% decline in PMSO costs and improved performance from equity holdings. Transmission revenue expanded 5.8%, helping compensate for a 12.4% drop in generation revenue after the disposal of thermal plants and the negative impact from wind power reimbursements.
Generation margins in the free and short-term markets improved to R$101/MWh from R$78/MWh in 4Q24, reflecting a more optimized energy portfolio and higher realized prices in the ACL environment. Operating provisions fell sharply, reinforcing the earnings recovery.
The quarter also marked a symbolic shift. After rebranding in October 2025, Axia positioned itself as the largest clean-energy company in the Southern Hemisphere. The completion of the sale of UTE Santa Cruz eliminated its last thermal asset, leaving the company with a fully renewable portfolio aligned with its Net Zero 2030 commitment. The company also advanced portfolio simplification through the signed sale of Eletronuclear and the agreement to acquire Tijoá Energia.
Investments totaled R$3.869 billion in the quarter, up 28% year-on-year, with R$2.441 billion allocated to transmission projects. Axia is executing large-scale reinforcement and expansion initiatives expected to add R$1.8 billion in additional RAP between 2025 and 2030.
Net debt climbed to R$46.484 billion, up from R$37.671 billion a year earlier, reflecting higher gross debt and reduced cash after R$4.3 billion in dividends paid in December. The average debt cost rose to CDI + 0.63%, compared with CDI + 0.07% in 4Q24, tracking a 275-basis-point increase in Brazil’s benchmark Selic rate.
Meanwhile, provisions related to compulsory energy loans declined to R$11.1 billion as the company advanced legal settlements and reduced litigation exposure.