ENGIE Brasil Energia (EGIE3) reported net income of R$ 711 million in 3Q26, down 3.7% from R$ 738 million in 3Q25. Adjusted net income, which excludes non-recurring items, was R$ 716 million, a decline of 2.1% from R$ 731 million in the same period of the previous year. The company attributes the result to higher financial expenses on debt and higher depreciation and amortization expenses resulting from new assets entering operation.
Net operating revenue reached R$ 3,670 million, up 9.8% from R$ 3,343 million in 3Q25. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) totaled R$ 1,948 million, an increase of 4.1% from R$ 1,871 million in 3Q25. The adjusted EBITDA margin was 53.1%, versus 56.0% in 3Q25. Year to date through September 2026, adjusted EBITDA was R$ 6,372 million, up 10.3%, and net income was R$ 3,465 million, compared with R$ 2,132 million in the first nine months of 2025.
Among the quarter's drivers, the generation segment contributed an increase of R$ 124 million to the result. Transmission fell by R$ 25 million and equity income from TAG by R$ 22 million. Since July 17, the 40% stake in Jirau Energia has been recognized and contributed R$ 35 million to EBITDA in the quarter. The 17.5% stake in TAG contributed R$ 144 million. Energy sold under contracts, excluding trading, totaled 11,062 GWh, up 7.3%, with an average net price of R$ 201.77/MWh, down 4.7%.
Net debt was R$ 25,286 million at the end of 3Q26, compared with R$ 24,534 million a year earlier. The ratio of net debt to adjusted EBITDA for the last 12 months was 3.1 times. Gross debt totaled R$ 30,154 million, a reduction of 6.2% from June 30. On July 20, the company completed the settlement of the renegotiation of the Use of Public Asset (UBP) for the Cana Brava and Ponte de Pedra plants, with a total payment of R$ 2.23 billion. On November 5, the Board of Directors approved the call of a meeting to deliberate on the merger of the subsidiary ENGIE Brasil Energia Comercializadora.
Fitch Ratings upgraded the company's long-term local currency international rating from 'BBB-' to 'BBB', with a stable outlook.
