Copel Achieves 20.8% Increase in Recurring EBITDA in 2Q26 Recurring

Rhea-AI Summary

Copel (NYSE American: ELPC) reported solid 2Q26 results, with consolidated recurring EBITDA reaching BRL 1.6 billion, a 20.8% increase versus 2Q25, and recurring net income of BRL 645.1 million, up 42.6%. Growth was supported by Copel Distribution’s 7.2% billed market expansion and a 34.5% rise in the segment’s recurring EBITDA, plus around BRL 75 million captured by Copel Generation and Energy Trading from market opportunities.

Recurring manageable costs (PMSO) fell 0.9% year over year. Capex totaled BRL 957.2 million, about half directed to distribution network modernization. Net debt-to-EBITDA leverage was 2.9x at June-end, in line with Copel’s updated optimal capital structure.

Positive

• Recurring EBITDA BRL 1.6 billion in 2Q26, up 20.8% year over year
• Recurring net income BRL 645.1 million in 2Q26, a 42.6% increase vs. 2Q25
• Distribution segment recurring EBITDA up 34.5%, with 7.2% billed market growth
• Market opportunities captured of approximately BRL 75 million in Generation and Trading
• Capex BRL 957.2 million in 2Q26, about half for distribution modernization
• Leverage at 2.9x net debt-to-EBITDA, aligned with the Board-approved capital structure

Negative

• None.

News Explained

Copel’s quarterly spending now includes active hydroelectric expansion projects, but their eventual capacity and financial scale remain unspecified.

Copel closed 2Q26 with investments underway to expand capacity at two hydroelectric plants selected in the Capacity Reserve Auction; alongside BRL 957.2 million of quarterly capex, this makes the expansion program an active use of company funds rather than only a reported operating result.

The projects concern the Governador Bento Munhoz and Governador Ney Braga plants, while the distribution tariff review outcome incorporated the company’s modernization and strengthening investments in Paraná’s electrical infrastructure.

The release does not state the amount or timing of the additional generation capacity, so the disclosure establishes that the work has started but not its eventual scale.

Market Context

Risk data showed low short positioning for ELPC, while insider activity was classified as Net Sellin...

Analysis

Risk data showed low short positioning for ELPC, while insider activity was classified as Net Selling. Those platform signals add context to the 2Q26 earnings report, with insider transactions remaining a factor to monitor.

Key Figures

Billed market growth: 7.2% Segment recurring EBITDA growth: 34.5% Market opportunities: BRL 75 million +5 more

8 metrics

Billed market growth 7.2% Copel Distribution, 2Q26

Segment recurring EBITDA growth 34.5% Copel Distribution, 2Q26

Market opportunities BRL 75 million Generation and Energy Trading, 2Q26

Recurring EBITDA BRL 1.6 billion Consolidated, 2Q26; up 20.8% year over year

Recurring net income BRL 645.1 million 2Q26; up 42.6% versus 2Q25

Recurring manageable costs reduction 0.9% Recurring PMSO, 2Q26 versus 2Q25

Capex BRL 957.2 million 2Q26

Net debt-to-EBITDA 2.9x End of June 2026

Key Terms

ebitda, capex, net debt-to-ebitda

3 terms

ebitda financial

"Consolidated recurring EBITDA reached BRL 1.6 billion in 2Q26"

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

capex financial

"In terms of investments, Copel recorded Capex of BRL 957.2 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.

net debt-to-ebitda financial

"Leverage stood at 2.9x net debt-to-EBITDA at the end of June"

Net debt-to-EBITDA is a financial ratio that compares a company's total debt, minus its cash reserves, to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It shows how many years it would take for the company to pay off its net debt if all its earnings were used for that purpose. Investors use this ratio to assess whether a company has manageable debt levels and its ability to meet its financial obligations.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Net Income Jumps 42.6%, Driven by Operational Efficiency, Strong Expansion in the Distribution Market, and a Highly Effective Commercial Strategy

Curitiba, Brazil--(Newsfile Corp. - August 5, 2026) - Copel (NYSE American: ELPC) (BVMF: CPLE3) closed the second quarter of 2026 with strong financial and operational performance, mainly driven by:

• Copel Distribution: billed market growth of 7.2%, driven by stronger economic activity within the concession area, expansion of the customer base, and higher temperatures. This momentum resulted in a significant 34.5% increase in the segment's recurring EBITDA.

• Copel Generation and Energy Trading: captured approximately BRL 75 million in market opportunities (hydrological optimization and inter-submarket arbitrage), demonstrating the high efficiency and agility of the active management of its energy portfolio.

Consolidated recurring EBITDA reached BRL 1.6 billion in 2Q26, up 20.8% from the BRL 1.3 billion reported in the same period of the previous year. Recurring net income also showed strong growth, totaling BRL 645.1 million, a 42.6% increase compared to 2Q25. This outstanding performance reflects the continued realization of the Company's operational synergies and its disciplined cost management, as evidenced by a 0.9% reduction in recurring manageable costs and expenses (recurring PMSO) compared to the same quarter of 2025.

In terms of investments, Copel recorded Capex of BRL 957.2 million in 2Q26. Half of this amount was allocated to the modernization and automation of the distribution network, with a focus on service excellence and maintaining quality indicators (DEC and FEC). In Generation, the highlight was the start of investments aimed at expanding the capacity of the Governador Bento Munhoz Hydroelectric Plant (Foz do Areia, or FDA) and the Governador Ney Braga Hydroelectric Plant (Segredo), strategic projects awarded in the Capacity Reserve Auction (LRCAP).

Leverage stood at 2.9x net debt-to-EBITDA at the end of June, fully aligned with the new optimal capital structure parameters approved by the Board of Directors in July. This update provides the financial flexibility required to support Copel's third strategic growth and asset expansion cycle while maintaining strict risk discipline.

On the strategic and service front, the outcome of Copel Distribution's tariff review process reflected the consolidation of the Company's ongoing investments in the modernization and strengthening of Paraná's electrical infrastructure. The growth of the asset base underscores Copel's continued commitment to enhancing the quality, reliability, and efficiency of the power system, generating direct and sustainable benefits for consumers and society in Paraná. At the same time, reinforcing its climate governance and environmental, social, and governance (ESG) commitments, Copel is proactively managing the impacts of El Niño, strategically positioning its portfolio to mitigate risks, ensure supply stability, and safeguard energy security.

Conference Call: August 6^th, 2026 – Thursday

English: 09:00 a.m. – EDT
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/308318

FAQ

How did Copel (ELPC) perform financially in the second quarter of 2026?

Copel delivered higher recurring EBITDA and net income in 2Q26. According to Copel, recurring EBITDA reached BRL 1.6 billion and recurring net income was BRL 645.1 million, representing year-over-year increases of 20.8% and 42.6%, respectively, versus 2Q25.

What drove Copel (ELPC) recurring EBITDA growth of 20.8% in 2Q26?

Recurring EBITDA growth was mainly supported by distribution and trading performance. According to Copel, Copel Distribution saw a 7.2% billed market increase and a 34.5% rise in recurring EBITDA, while Generation and Energy Trading captured about BRL 75 million in market opportunities.

How much net income did Copel (ELPC) report in 2Q26 and how did it change year over year?

Copel reported higher recurring net income in 2Q26. According to Copel, recurring net income totaled BRL 645.1 million, representing a 42.6% increase compared with the same quarter of 2025, supported by operational synergies and disciplined cost management.

What was Copel (ELPC) Capex in 2Q26 and where was it invested?

Copel significantly invested in its network and generation assets in 2Q26. According to Copel, Capex reached BRL 957.2 million, with about half allocated to distribution network modernization and automation, and additional amounts directed to capacity expansion at the FDA and Segredo hydroelectric plants.

What is Copel (ELPC) leverage level as of June 2026 and what does it imply?

Copel ended June 2026 with net debt-to-EBITDA leverage of 2.9x. According to Copel, this level is fully aligned with the new optimal capital structure parameters approved by the Board, intended to support the company’s strategic growth and asset expansion cycle.

When is the Copel (ELPC) 2Q26 earnings conference call and how can investors access it?

Copel scheduled its 2Q26 conference call for August 6, 2026, at 9:00 a.m. EDT in English. According to Copel, investors can access a live webcast via the investor relations website at ri.copel.com/en/.