Equatorial (EQTL3) Posts Net Income of R$ 934 Million in 3Q26

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) totaled R$ 3,206 million, up 4.1% (R$ 127 million) from R$ 3,080 million in 3Q25, with a margin of 23.5% of net revenue. Excluding equity income, the increase was 7.1%. Corporate (reported) EBITDA reached R$ 3,536 million, up 26.6%. The increase in adjusted EBITDA is mainly explained by R$ 230 million growth in Distribution, driven by higher gross margin, and by equity income from Copasa. In the opposite direction, equity income from Sabesp fell R$ 131 million.

Net operating revenue was R$ 13,644 million, down 1.2% from R$ 13,806 million in 3Q25. Adjusted gross margin rose 11.8%, from R$ 4,221 million to R$ 4,719 million. Equity income totaled R$ 247 million, of which R$ 184 million from Sabesp and R$ 63 million from Copasa. The adjusted financial result was negative R$ 1,620 million, 7.5% worse, due to growth in the debt balance and a decline in financial income.

Adjustments for the quarter totaled R$ 329 million in EBITDA and R$ 399 million in net income. These include the recognition of R$ 283.9 million in compensation for generation curtailments (constrained-off) in Renewables, with a R$ 297 million impact on net income, and the R$ 83 million discount on the purchase of court-ordered payments (precatórios) from the Acordo Gaúcho. Net generation in Renewables was 14.3% higher than in 3Q25.

Net debt reached R$ 52,824 million, up 14.5% from R$ 46.1 billion in 3Q25, with a net debt/EBITDA ratio of 3.1x, versus 3.3x a year earlier (3.6x excluding the capital gain from the sale of Transmission). Cash and investments totaled R$ 10.2 billion, equivalent to 2.1x short-term debt. The average debt maturity is 5.4 years, with an average cost of 13.83% per year. Investments totaled R$ 2,620 million, down 13.2%.