Companhia Paranaense de Energia

Copel reported consolidated recurring EBITDA of BRL 1.6 billion in Q2 2026, up 21% versus Q2 2025, and recurring net income of BRL 645.1 million, up 42.6% year over year. DisCo EBITDA increased 34.5% to BRL 765.6 million, while Jet (generation and transmission) EBITDA rose 10.1% to BRL 838 million; management also cited BRL 75 million in market opportunities from hydro modulation and submarkets. CapEx totaled BRL 957.2 million, with BRL 318 million allocated to begin construction at Foz do Areia and Segredo. Net debt was BRL 19.6 billion, leverage was 2.9x, and the average nominal cost of debt fell to 12.92% per year. Looking ahead, management reiterated a minimum payout ratio of 75%, at least two annual payments, and said there will be at least one more dividend declaration by the end of 2026.

Daniel Slaviero framed the quarter as evidence of Copel’s “discipline in executing the company’s strategic plan,” with the tariff review of Copel Distribution as the standout achievement. He stressed that the company is entering a “new cycle” after the LRCAP win, with strict capital allocation, higher investment, and a stronger, more resilient company. His tone was confident and shareholder-friendly, repeatedly emphasizing predictability, value creation, and that dividend policy remains unchanged.

Felipe Gutterres focused on the updated capital structure and the quarter’s financial drivers. He said the new leverage target of 2.9x and the convergence window of up to four years reflect stress testing around the investment plan and the LRCAP cash flow expected to begin at the end of 2030, while the minimum payout of 75% remains intact. On the quarter, he cited recurring EBITDA of BRL 1.6 billion, recurring net income of BRL 645.1 million, CapEx of BRL 957.2 million, adjusted net debt of BRL 19.6 billion, and a debt cost of 12.92% per year; he also noted a delinquency rate of 0.01% in trading.

Analysts pressed management on whether the leverage-range change signaled a softer dividend outlook; management rejected that interpretation and said the update was mainly about accommodating the investment cycle from the tariff review and LRCAP, not changing payout intent. On delinquency and bad debt, management said the issue is a sector-wide discussion, but Copel’s own delinquency is only 0.01% and its concession area has very low delinquency. Management also said there is no tangible M&A pipeline, that Copel would favor competitive rebidding of hydro assets if that policy advances, and that it is unlikely to participate in the batteries auction because expected returns are below its minimum threshold.