By Brazil Stock Guide – Neoenergia S.A. (B3: NEOE3) reported third-quarter 2025 results that slightly surpassed market expectations, with net profit reaching R$924 million ($172 million), a 10% year-on-year increase. The company’s EBITDA rose 13% to R$2.8 billion ($522 million), driven by tariff revisions in its five distribution units and ongoing cost-control efforts, reinforcing its position as one of Brazil’s largest integrated power groups.
Consolidated performance and financials
Neoenergia’s net operating revenue grew 10% to R$13 billion ($2.42 billion), reflecting positive “Parcela B” tariff adjustments approved by the regulator Aneel: +16.2% at Neoenergia Pernambuco, +8.1% at Coelba, +6.6% at Cosern, +1.3% at Elektro, and +5% at Brasília. The increase in regulated revenue, combined with controlled expenses (+5.6%) and new transmission assets, offset the weaker contribution from hydro generation following the July divestment of the Baixo Iguaçu plant.
The company’s consolidated gross margin without VNR reached R$4.28 billion ($797 million), up 9% year-on-year, supported by growth in its customer base and expansion of distributed generation. Neoenergia’s leverage remained stable at 3.52x net debt-to-EBITDA, and its AAA rating from S&P was reaffirmed.
Investments and portfolio diversification
Total investments in the first nine months of 2025 reached R$7.6 billion ($1.4 billion), with R$4.8 billion allocated to the distribution segment, increasing the regulated asset base (RAB) to R$42.7 billion ($8 billion). The company also renewed the Neoenergia Pernambuco concession until 2060 and increased its stake in the Corumbá hydro plant from 70% to 85% through a R$92 million ($17 million) acquisition.
Neoenergia’s transmission portfolio remained fully operational, with availability above the 98% threshold defined by Brazil’s grid operator. The company continues to advance projects from the 2018–2022 auction cycles, with remaining RAP (Annual Permitted Revenue) releases scheduled for 4Q25.
Operational indicators and debt profile
The group’s energy injected into the grid—including distributed generation—rose 2.3% year-on-year to 21,283 GWh, supported by residential demand and an expanding distributed generation base. The customer base reached 16.9 million, up 2.1% from the previous year. Consolidated operating cash flow remained strong, and the net financial result worsened 33% to R$1.5 billion ($280 million) due to higher interest rates, while the company maintained a solid liquidity position and extended its debt maturities.
Shares of Neoenergia have gained 47% year-to-date, closing Friday at R$28.39, outperforming the Ibovespa and the B3 utilities index. The company will hold its quarterly earnings call on October 28 at 10:00 a.m. (BRT), with simultaneous translation in English.
Distribution segment: efficiency gains and regulatory adjustments
Coelba (Bahia)
Neoenergia Coelba recorded an 8.1% tariff adjustment in April 2025, helping offset lower residential demand caused by milder weather. Losses over 12 months reached 15.85%, remaining below the regulatory cap of 16.37%. The company carried out over 235,000 inspections and recovered 244 GWh in the year to date, reinforcing its anti-fraud program.
Elektro (São Paulo and Mato Grosso do Sul)
Neoenergia Elektro reported an 8.3% tariff increase applied in August 2025, with energy injected into the grid up 2.1% year-on-year to 4,602 GWh. Losses stood at 6.29%, below Aneel’s limit of 7.99%, reflecting operational excellence. The distributor’s customer base expanded to 6.9 million, while its collection index reached 98.31%.
Pernambuco
Neoenergia Pernambuco achieved the strongest regulated revenue growth among the group’s distributors, with a +16.2% revision in April 2025, lifting its contribution to group EBITDA. The concession, recently extended until 2060, underpins the company’s long-term presence in Brazil’s Northeast. Losses totaled 18.37%, above the regulatory limit (16.47%), prompting targeted field actions to regularize clandestine connections.
Brasília
Neoenergia Brasília recorded a Parcela B adjustment of +8.3% in October 2025, boosting revenue after two years of integration under the Neoenergia brand. Energy losses stood at 12.44%, slightly above the 11.90% limit. Efficiency programs, including smart meter replacements and improved collection methods, maintained the group’s overall collection rate at 98.3%.
Cosern (Rio Grande do Norte)
Neoenergia Cosern maintained its strong operational performance, with losses of only 7.48%, below the 11.13% regulatory cap. The distributor posted stable demand and improved reliability indicators (DEC and FEC), outperforming Aneel’s benchmarks for service continuity.