By Brazil Stock Guide – Axia Energia S.A. (B3: ELET3; NYSE: ELET), formerly Eletrobras, reported R$2.18 billion in adjusted net income for the third quarter of 2025, down 68% from a year earlier, as regulatory remeasurements normalized following last year’s tariff revision.
Despite the lower bottom line, the company maintained robust operating performance and announced R$4.3 billion in interim dividends, bringing total shareholder payouts in 2025 to R$8.3 billion — equal to R$4.01 per preferred share and R$3.65 per common share. Payments will be made on December 19, with ex-rights starting November 17.
Operational Transition and Capital Discipline
Axia, which completed the sale of its last thermoelectric plant in October, now holds a 100% renewable portfolio, fulfilling its Net Zero 2030 commitment. The company also finalized agreements to sell Eletronuclear to J&F for R$535 million and its stake in EMAE to Sabesp for R$476.5 million, while acquiring the remaining 50.1% of Tijoá Energia for R$247 million, consolidating control over the 808 MW hydropower plant.
The company’s board said these asset moves, coupled with solid 3Q25 results and resilient energy prices, generated capital available for allocation — enabling both the dividend decision and participation in Transmission Auction 04/2025, where Axia secured lots 6A, 6B, 7A, and 7B with annual permitted revenue (RAP) of R$138.7 million and expected CAPEX of R$1.63 billion.
Financial Highlights
The adjusted regulatory EBITDA reached R$6.38 billion, down 5.8% year-on-year, as lower generation revenue — after the sale of Amazonas thermal assets — was partly offset by a 9.8% rise in transmission revenue and a 10% drop in PMSO expenses, reflecting ongoing efficiency efforts. Excluding the sold thermal plants, EBITDA rose to R$6.42 billion, up 3.4%.
Net debt increased to R$42.6 billion, with leverage at 1.9× adjusted EBITDA, following the R$4 billion dividend payment in August. Axia also completed a R$2 billion debenture issue via Eletronorte at CDI – 0.56% after swap, improving funding costs.
Outlook and Strategic Focus
With 230 large-scale transmission projects under implementation, equivalent to R$12.5 billion in total CAPEX and R$1.7 billion in future RAP, the company continues to expand its regulated base while simplifying its asset structure. The completion of the Itaipu HVDC revitalization project and recent efficiency gains position Axia to sustain cash generation and uphold its capital-allocation model, balancing dividends and investments.
“The methodology reinforces our commitment to financial discipline, value creation, and the capacity to invest,” said Eduardo Haiama, Vice-President of Finance and Investor Relations.