Isa Energia Brasil reported regulatory net profit of R$1.9 billion for the third quarter of 2026, up 246.3% from R$550 million a year earlier. The result included a non-recurring accounting gain of R$1.27 billion, with no cash impact, related to changes in its interests in transmission companies IE Madeira and IE Garanhuns. Excluding the gain, pro forma regulatory net profit was R$625 million, a 14% increase year over year.
Regulatory net revenue reached R$1.51 billion from July to September, up 41% compared with R$1 billion in the same period of 2025. The consolidation of IE Madeira, which began in August, contributed R$132 million to quarterly revenue. The company also cited new projects and upgrades entering service, as well as a 4.72% adjustment to its allowed annual revenue under the 2026/27 tariff cycle. Projects Riacho Grande, Jacarandá and Piraquê qualified for R$479 million in allowed annual revenue after being energized between late 2025 and the first half of 2026.
The restructuring was completed on July 31. Isa Energia took full ownership of IE Madeira and sold its 51% stake in IE Garanhuns in a transaction that included a cash payment of R$1.2 billion. The accounting gain reflected fair-value adjustments to assets, a bargain purchase of IE Madeira and the sale of Garanhuns.
Regulatory EBITDA was R$3.19 billion, up 259% from R$888 million a year earlier. Excluding the restructuring’s accounting effects, which the report puts at R$1.93 billion for EBITDA, pro forma EBITDA was R$1.2 billion, a 41% increase.
Operating costs and expenses for personnel, materials, services and other items totaled R$235 million, up 26% from R$187 million in the third quarter of 2025. The company attributed the increase partly to consolidating IE Madeira, transaction expenses and higher compensation and service costs. Higher financial expenses and depreciation related to assets entering operation also weighed on profit.
Quarterly investment totaled R$1.1 billion, down 9% year over year. Spending on new projects fell 32% to R$524.9 million, while investment in upgrades and improvements rose 32% to R$578.5 million. The company said its authorized portfolio of upgrades and improvements was worth R$7.6 billion in September, and that around R$12 billion in investment remains to be made across auction projects, upgrades and improvements.
Net debt stood at R$17 billion at the end of September, while gross debt was R$19.8 billion. Leverage, measured as net debt to last-12-month EBITDA using the company’s BNDES financing methodology, was 3.5 times. Finance and investor relations director Silvia Wada said 90% of the debt matures from 2030 onward; 60% is inflation-linked and about one-third is tied to the CDI rate.
Isa Energia also announced R$398.7 million in interest on equity tied to first-half 2026 results, equivalent to R$0.566877 per share and scheduled for payment on December 7. The company said its 2026 distribution base will be pro forma regulatory net profit, excluding the one-off accounting gain from the restructuring.
Sources: CNN Brasil.