Eletrobras settlement ratified by Brazil’s Supreme Court, ADI closed
Centrais Elétricas Brasileiras S.A. – Eletrobras reports that Brazil’s Federal Supreme Court has ratified a Settlement Agreement between the company and the Federal Government related to Direct Action of Unconstitutionality (ADI) No. 7,385.
Rhea-AI Filing Summary
Centrais Elétricas Brasileiras S.A. – Eletrobras reports that Brazil’s Federal Supreme Court has ratified a Settlement Agreement between the company and the Federal Government related to Direct Action of Unconstitutionality (ADI) No. 7,385. This agreement was mediated within the Federal Administration’s Mediation and Conciliation Chamber and was established to seek a consensual and amicable resolution between the parties.
With this ratification, the last condition precedent in the Settlement Agreement has been fulfilled, making the agreement fully effective, binding, and enforceable for all parties. As a direct consequence, the constitutional action (the ADI) is terminated, reducing legal uncertainty around this dispute for Eletrobras and its stakeholders.
Positive
- Brazilian Supreme Court ratifies settlement, making the agreement between Eletrobras and the Federal Government fully effective and enforceable and terminating ADI No. 7,385, which reduces legal uncertainty.
Negative
- None.
Insights
Supreme Court ratification ends a key constitutional dispute for Eletrobras.
The Plenary of Brazil’s Federal Supreme Court ratified a Settlement Agreement between Eletrobras and the Federal Government within ADI No. 7,385. This follows a structured mediation process in the Federal Administration’s Mediation and Conciliation Chamber, which was set up to pursue an amicable, negotiated solution between the parties.
The company states that this ratification satisfies the last condition precedent in the Settlement Agreement, making it fully effective, binding, and enforceable. That legal status means the underlying Direct Action of Unconstitutionality is terminated, removing this specific constitutional case from the company’s risk landscape.
For investors, the key takeaway is the formal closure of this litigation track by Brazil’s highest court. Future disclosures in company reports may provide additional detail on how the agreement interacts with broader regulatory, political, or strategic issues affecting Eletrobras’ operations and capital structure.
FAQ
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What did Eletrobras (AXIA) announce in this 6-K?
What is the significance of the Settlement Agreement for Eletrobras (AXIA)?
How does this Supreme Court decision affect the ADI involving Eletrobras (AXIA)?
Who were the parties to the Settlement Agreement with Eletrobras (AXIA)?
What role did the Mediation and Conciliation Chamber play in the Eletrobras (AXIA) case?
Which Justice reported the Eletrobras (AXIA) Direct Action of Unconstitutionality?
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of December, 2025
Commission File Number 1-34129
CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS
(Exact name of registrant as specified in its charter)
BRAZILIAN ELECTRIC POWER COMPANY
(Translation of Registrant's name into English)
Rua da Quitanda, 196 – 24th floor,
Centro, CEP 20091-005,
Rio de Janeiro, RJ, Brazil
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F _______
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No___X____
Direct Action of Unconstitutionality
Rio de Janeiro, December 8, 2025, Centrais Elétricas Brasileiras S/A – AXIA Energia in continuity with the material facts disclosed by the Company on January 8, April 3, July 31 and December 5, 2024, and on February 28, March 26 and March 28, 2025, as well as the market announcements disclosed on December 20, 2023, March 15, April 4, April 19, July 29, September 11, September 18 and December 17, 2024, and on February 18 and April 30, 2025, informs that, on this date, the Plenary of the Federal Supreme Court ratified the Settlement Agreement entered into between the Company and the Federal Government within the scope of the Federal Administration’s Mediation and Conciliation Chamber (CCAF), established “for the purpose of attempting conciliation and consensual and amicable resolution between the parties,” pursuant to the decision issued by Justice Nunes Marques, the reporting Justice of Direct Action of Unconstitutionality (ADI) No. 7,385.
The Company clarifies that, as a result of the aforementioned ratification, the last condition precedent under the Settlement Agreement has been satisfied, and the agreement therefore becomes fully effective, binding, and enforceable against all parties, resulting in the termination of the ADI in question.
Eduardo Haiama
Vice President of Finance and Investor Relations
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: December 11, 2025
| CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS | ||
| By: |
/S/ Eduardo Haiama |
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Eduardo Haiama Vice-President of Finance and Investor Relations |
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FORWARD-LOOKING STATEMENTS
This document may contain estimates and projections that are not statements of past events but reflect our management’s beliefs and expectations and may constitute forward-looking statements under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. The words “believes”, “may”, “can”, “estimates”, “continues”, “anticipates”, “intends”, “expects”, and similar expressions are intended to identify estimates that necessarily involve known and unknown risks and uncertainties. Known risks and uncertainties include, but are not limited to: general economic, regulatory, political, and business conditions in Brazil and abroad; fluctuations in interest rates, inflation, and the value of the Brazilian Real; changes in consumer electricity usage patterns and volumes; competitive conditions; our level of indebtedness; the possibility of receiving payments related to our receivables; changes in rainfall and water levels in reservoirs used to operate our hydroelectric plants; our financing and capital investment plans; existing and future government regulations; and other risks described in our annual report and other documents filed with the CVM and SEC. Estimates and projections refer only to the date they were expressed, and we do not assume any obligation to update any of these estimates or projections due to new information or future events. Future results of the Company’s operations and initiatives may differ from current expectations, and investors should not rely solely on the information contained herein. This material contains calculations that may not reflect precise results due to rounding.