ELPC · Companhia Paranaense de Energia

COPEL's 1Q26 results showed strong recurring profitability with net income rising 33.8% to R$455.4 million, primarily from a R$240.6 million EBITDA increase to R$1,023.7 million. This was fueled by operational performance in GenCo and TradeCo segments, plus consolidation of transmission company Mata de Santa Genebra S.A., which shifted equity method income. Net operating revenue grew 27.4% to R$1,579.2 million on higher electricity sales and grid usage. Manageable costs declined 5.0% to R$222.0 million, aided by lower third-party services and other expenses, despite personnel cost pressures from variable compensation and INPC adjustments. DisCo contributed with 10.0% recurring EBITDA growth to R$762.3 million from 2.1% billed market expansion and 1.3% tariff effect, though net income dipped 4.4% due to higher depreciation and financial expenses. Generation faced hydrological challenges with hydro output down 39.8% and wind down 16.6% from curtailment, yet trading captured high prices for positive economic results. Investments rose 74.9% to R$141.3 million, supporting infrastructure. Dividend policy execution included R$1,100 million IOE paid, with more scheduled. ESG highlights included 100% renewable generation and Dow Jones Best-in-Class inclusion. New GeT leadership and divestiture of Figueira thermal plant align with sustainability focus.