Empresa Distribuidora y Comercializadora Norte Sociedad Anónima

Edenor reported second-quarter 2026 revenue of ARS 918 billion, up 10% year over year in real terms, helped by higher tariffs and lower subsidies. Distribution margin increased 1% year over year to ARS 335 billion in Q2, and first-half distribution margin was ARS 748 billion, up 7% versus the first half of 2025. EBITDA for the first six months of 2026 was ARS 314 billion versus ARS 386 billion a year earlier, but management said that excluding the ARS 225 billion CAMMESA settlement gain recognized in Q2 2025, EBITDA would have increased 94% year over year. Net profit in Q2 was ARS 31 billion, down 75% versus Q2 2025 because last year included the CAMMESA settlement gain. CapEx was ARS 92 billion in Q2 and ARS 167 billion for the first six months of 2026. On the operating side, customer count reached 3.41 million, up 1.3% year over year, and energy sales rose 1.9% to 5,776 GWh. Management said the VAD rose 20% in the first half versus 17% inflation, with July and August VAD adjustments of 2.95% and 1.78%. For the second half, management did not provide a formal numeric revenue or EBITDA guide, but said they expect full-year EBITDA to be higher than the prior year excluding the one-off CAMMESA effect, and they reiterated that there are no debt maturities next year.

The lead commentary framed the quarter as part of a multi-year recovery driven by a healthier regulatory backdrop, automatic tariff adjustments, and operational modernization. Management emphasized that Edenor is positioned for long-term growth, with investments in substations, smart meters, telecontrol, and network digitization improving service quality and enabling faster restoration of service. The tone was upbeat and strategic, especially around expanding beyond electricity distribution and using the amended corporate purpose to pursue broader energy-sector opportunities.

German Ranftl focused on the financial mechanics behind the quarter: tariffs, subsidy reduction, CAMMESA normalization, cost control, and funding. He cited Q2 revenue of ARS 918 billion, Q2 distribution margin of ARS 335 billion, first-half EBITDA of ARS 314 billion, Q2 net income of ARS 31 billion, and Q2 net financial expenses of ARS 106 billion, down 28%. He also noted operating expenses fell 8% in the first half to ARS 603 billion, with salary expense down 2%, pension cost down 37%, material consumption down 39%, and ENRE penalties down 24%. On the balance sheet, he said total senior notes plus loans were $1.159 billion at June 30 and net debt was $303 million, later updating that pro forma net debt as of today would be $447 million, with no maturities next year.

Analysts focused on the regulatory-asset bill, how CAMMESA debt would be handled if it is approved, and the planned Metrogas acquisition. Management said that if the regulatory-assets framework is approved, Edenor would be able to write off the CAMMESA debt, using the debt’s face value of around $345 million equivalent rather than the carrying value, and that this would also improve cash flow by roughly $6 million per month in servicing. On Metrogas, management said Edenor and Andina submitted the bid together, Edenor would acquire the full YPF stake, closing is subject to approvals and concession extension, and they expect timing before year-end, potentially around the third quarter. They also said the mandatory tender offer for the remaining stake would begin 30 days after closing and would follow CNV rules, using the higher of the 180-day average price or the acquisition price.