Copel Accelerates Growth with a 35.0% Increase in Recurring EBITDA in the Third Quarter of 2026

Rhea-AI Summary

Copel (NYSE American: ELPC) increased recurring EBITDA, a measure of operating earnings, by 35.0% year over year in the third quarter of 2026. Recurring EBITDA reached R$ 1.8 billion, while recurring net income rose 79.6% to R$ 673 million. Reported EBITDA was R$ 1.9 billion, up 41.5%, and reported net income reached R$ 688 million, up 89.0%.

Distribution recurring EBITDA rose 70.2% to R$ 1.1 billion, supported by a tariff reset and 5.8% growth in billed energy volume. Capital spending totaled R$ 991 million. Severe storms required replacement of more than 3,700 utility poles. Net debt-to-EBITDA ended the quarter at 2.7 times, below the company's long-term target midpoint of 2.9 times. Average debt cost fell 60 basis points to 12.62% annually. The completed Dona Francisca stake sale generated R$ 151 million in cash.

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How the balance works

Positive

• Moderate pointRecurring EBITDA rose 35.0% to R$ 1.8 billion year over year; reported EBITDA increased 41.5% to R$ 1.9 billion.
• Moderate pointRecurring net income rose 79.6% to R$ 673 million year over year; reported net income increased 89.0% to R$ 688 million.
• Moderate pointDistribution recurring EBITDA increased 70.2% to R$ 1.1 billion in the third quarter.
• Moderate pointJune's approved tariff reset had an average 8.6% impact on the manageable rate component, compensating for 2021–2026 grid investments.
• Moderate pointBilled distributed energy volume grew 5.8%, supported by economic activity in Paraná and higher temperatures.
• Moderate pointThird-quarter capital spending of R$ 991 million supported grid modernization and hydroelectric expansion; 57% went to Distribution.
• Moderate pointAverage debt cost declined 60 basis points to 12.62% per annum at September's end.
• Minor pointDona Francisca stake divestment completed, generating R$ 151 million in cash.

Negative

• Moderate pointEight major storms required replacement of more than 3,700 utility poles and mobilization of up to 1,000 field crews.

Key Figures

Recurring net income: R$ 673 million (+79.6%) Recurring EBITDA: R$ 1.8 billion (+35.0%) Distribution recurring EBITDA: R$ 1.1 billion (+70.2%) +4 more

Recurring net income

R$ 673 million (+79.6%)

3Q26; compared with R$ 375 million in 3Q25

Recurring EBITDA

R$ 1.8 billion (+35.0%)

3Q26; compared with R$ 1.3 billion in the same period of 2025

Distribution recurring EBITDA

R$ 1.1 billion (+70.2%)

3Q26

Consolidated Capex

R$ 991 million

3Q26

Net debt-to-EBITDA

2.7 times

3Q26; below the 2.9-times midpoint of the long-term target

Average cost of debt

12.62% per annum

At the end of September; reduced by 60 basis points

Dona Francisca stake divestment proceeds

R$ 151 million

Cash inflow from completed divestment

Historical Context

1 past event · Latest: Aug 05

1 event

1. Aug 05

   Quarterly results

   24h Move

   +0.9%

   Recurring EBITDA rose 20.8% to BRL 1.6 billion, and recurring net income increased 42.6%.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ebitda, net debt-to-ebitda ratio, capex

3 terms

ebitda financial

"consolidated recurring EBITDA, which rose 35.0%"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

net debt-to-ebitda ratio financial

"net debt-to-EBITDA ratio of 2.7 times"

The net debt-to-EBITDA ratio compares a company's total debt, after subtracting its cash reserves, to its earnings before interest, taxes, depreciation, and amortization (a measure of profitability). It shows how many years it would take for the company to pay off its debt using its current earnings. Investors use this ratio to assess a company's financial health and its ability to manage and repay debt.

capex financial

"executed consolidated Capex of R$ 991 million"

Capex, short for capital expenditures, refers to the money a company spends to buy, upgrade, or maintain physical assets such as buildings, equipment, or technology. It matters to investors because these investments can help a company grow and improve its long-term performance, but they also represent significant costs that can impact profitability and cash flow.

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Driven by operational efficiency, the company reports a 79.6% increase in recurring net income

Curitiba, Brazil--(Newsfile Corp. - November 12, 2026) - Companhia Paranaense de Energia (NYSE American: ELPC) (BVMF: CPLE3) (Copel) ended the third quarter of 2026 with recurring net income of R$ 673 million, a significant increase of 79.6% compared to the R$ 375 million reported in the third quarter of 2025 (Reported net income of R$ 688 million, +89.0% compared to 3Q25). This result was accompanied by strong growth in consolidated recurring EBITDA, which rose 35.0% to R$ 1.8 billion, compared to R$ 1.3 billion in the same period of the previous year (reported EBITDA of R$ 1.9 billion, +41.5% compared to Q3 2025).

The main driver of quarterly performance was Copel Distribuição, which saw a 70.2% increase in recurring EBITDA, reaching R$ 1.1 billion. This increase reflects the Periodic Tariff Reset (RTP) approved in June, which compensates for investments made in the grid during the 2021-2026 cycle, with an average impact of 8.6% on the manageable portion of the rate (Part B), and the 5.8% growth in the volume of energy distributed (billed grid market), driven by economic activity in Paraná and higher temperatures during the period.

The infrastructure's resilience was put to the test during this period due to severe weather events caused by El Niño, with rainfall reaching up to 3.7 times the historical average in the state and winds of up to 125 km/h in September. In the face of eight major storms, the contingency plan simultaneously mobilized up to 1,000 field crews and 3,000 professionals, resulting in the replacement of more than 3,700 utility poles.

The Company executed consolidated Capex of R$ 991 million in the third quarter. Of this amount, in line with the strategic plan, 57% was allocated to Distribution for the ongoing modernization of power lines, the reinforcement of substations, and improvements in regulatory quality indicators (DEC and FEC), while R$ 429 million supported Generation and Transmission, with an emphasis on advancing expansion work at the Governador Bento Munhoz (Foz do Areia) and Governador Ney Braga (Segredo) hydroelectric plants, which were contracted through the Capacity Reserve Auction (LRCAP).

On the financial front, Copel ended the third quarter with a net debt-to-EBITDA ratio of 2.7 times, well within the fluctuation range of its optimal capital structure and below the midpoint of its long-term target of 2.9 times. Prudent liability management resulted in a 60-basis-point reduction in the average cost of debt, which stood at 12.62% per annum at the end of September, with a comfortable average maturity of 4.8 years and ample liquidity to support the long-term expansion plan. During the period, the divestment of the stake in the Dona Francisca power plant was also completed, generating a cash inflow of R$ 151 million and simplifying the corporate structure.

The strength of the quarter was recognized by major awards in the national electricity sector. Copel was honored by the National Electric System Operator (ONS) with the Quality in Operations Award as the Best Hydroelectric Generator and was named national champion for the second consecutive year as an AC power transmitter. The Company's accounting and corporate transparency was once again recognized with the ANEFAC Award for the fourth consecutive year. In the area of environmental, social, and governance (ESG) performance, the Company reaffirmed its market leadership by being simultaneously included in the sustainability indices of the B3 — ISE, ICO2 and IDI.

Conference Call: November 13th, 2026 – Friday
English: 08:00 a.m. – EST
Broadcast through Internet

Live webcast at ri.copel.com/en/

Relações com Investidores
COPEL
+55 41 3331-4011
ri@copel.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/323835

FAQ

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How much did Copel's recurring earnings grow in the third quarter of 2026?

Copel's recurring net income increased 79.6% to R$ 673 million, compared with R$ 375 million in the third quarter of 2025. Recurring EBITDA increased 35.0% to R$ 1.8 billion, compared with R$ 1.3 billion a year earlier.

Which power projects received Copel's third-quarter 2026 investment?

Copel allocated R$ 429 million to Generation and Transmission, emphasizing expansion work at the Governador Bento Munhoz (Foz do Areia) and Governador Ney Braga (Segredo) hydroelectric plants. Those expansions were contracted through the Capacity Reserve Auction.

What was the average maturity of Copel's debt at the end of the third quarter of 2026?

Copel's debt had an average maturity of 4.8 years at the end of the third quarter of 2026.