Financial Data and Key Metrics Changes - The company reported a recurring EBITDA of nearly BRL 1.4 billion for Q4 2025, representing a 16% year-on-year increase, and a recurring net income of close to BRL 700 million, up 30% year-on-year [4][13][22] - Total CapEx for Q4 2025 was BRL 768 million, totaling BRL 3.4 billion for the full year, with a leverage ratio of 2.7x, consistent with the optimal capital structure [5][24] Business Line Data and Key Metrics Changes - The GenCo segment achieved a recurring EBITDA of BRL 654 million in Q4 2025, a 24% increase compared to Q4 2024, driven by operational efficiency and increased availability revenue [16] - The DisCo segment recorded a recurring EBITDA of BRL 728.4 million, up 1.8% year-on-year, with a gross distribution margin growth of 8.4% [18] - The TradeCo segment reversed a loss from Q4 2024, achieving a recurring EBITDA of BRL 3.5 million, supported by a 70% increase in the volume of bilateral contracts [20] Market Data and Key Metrics Changes - The company noted a GSF of 67% and curtailment of 34% in Q4 2025, impacting operational performance [4][17] - The average energy availability for 2026 is projected to be approximately 20%-22%, positioning the company favorably against potential GSF impacts [20][55] Company Strategy and Development Direction - The company announced a multi-year investment plan totaling BRL 18 billion over the next five years, focusing on network modernization and operational safety [6] - The migration to Novo Mercado is expected to enhance stock liquidity and attract new investors, reinforcing the company's commitment to transparency and sustainable value creation [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming DisCo tariff review scheduled for June 2026, anticipating a new net remuneration base slightly exceeding BRL 18.5 billion [7][8] - The company aims to leverage the upcoming LRCAP auction as a significant opportunity for value creation, emphasizing the advantages of hydroelectric power [9][10] Other Important Information - The company achieved a record of BRL 3.8 billion in shareholder remuneration throughout 2025, with an aggregate payout of 144% and a dividend yield of 14% [5][6] - The average nominal cost of debt improved to 87.74% of the CDI, reflecting effective debt management strategies [24] Q&A Session Summary Question: Could you elaborate on LRCAP and its impact on strategy? - Management indicated that the cap price for hydro projects is tight but believes hydro will be the lowest cost source, advocating for maximum contracting of hydro products [28][30][31] Question: How is the market behaving regarding energy contracts? - Management clarified that the decision to contract at a slower pace is strategic rather than due to liquidity issues, aiming to capitalize on price volatility [33][36] Question: Is Copel considering paying dividends in installments? - Management confirmed that while the current policy is to pay dividends at least twice a year, they are open to considering more frequent payments depending on cash flow [42][44] Question: What are the company's views on capital allocation and M&A opportunities? - Management stated they are agnostic regarding segments as long as they pertain to hydroelectric energy and will consider opportunities as they arise, emphasizing disciplined capital allocation [49][50] Question: How does Copel view energy prices for 2026? - Management expects energy prices in 2026 to be above historical averages, with a strategy to maintain a long position to benefit from favorable pricing [54][55][56]

Financial Data and Key Metrics Changes - The company reported a recurring EBITDA of 1.3 billion BRL, an increase of almost 8% compared to the same period last year [6] - Recurring net income was 375 million BRL, reflecting a decrease of 36.5% year-on-year due to rising financial costs despite the EBITDA increase [18] - Capital expenditures (CapEx) for Q3 totaled 981 million BRL, with a year-to-date total of 2.6 billion BRL, indicating a strong commitment to service quality and asset modernization [6][19] Business Line Data and Key Metrics Changes - Copel Generation and Transmission (GenCo) contributed 53% to the recurring EBITDA, with GenCo's EBITDA growing 11% year-on-year due to better asset performance and strategic consolidations [14] - The distribution segment (Copel Discom) saw a recurring EBITDA increase of 7.2%, driven by a 1.7% growth in the billed energy market and efficient cost management [15] - Copel Trading (Copel Com) experienced a decline in EBITDA by 7.3% due to legacy contracts and increased expenses, although sales volume for 2026 to 2030 grew significantly by 96.2% [16] Market Data and Key Metrics Changes - The sales volume reached almost 5 gigawatt-hours, with a market growth of 1.7% in the distribution segment [8] - The spot market price (PLD) increased by nearly 50% compared to Q3 2024, reaching about 250 BRL per megawatt-hour [8] - The generation segment faced challenges with a Generation Scaling Factor (GSF) of approximately 65% and curtailment of nearly 35% [8] Company Strategy and Development Direction - The company is focused on simplifying its portfolio, as evidenced by the divestment of four photovoltaic solar plants and the Baixo Iguaçu HPP [7] - A strategic shift towards a more transparent shareholder structure is underway, with plans to unify share classes to enhance liquidity and attract new investors [11] - The company is preparing for a historical tariff review in 2026, emphasizing the importance of operational efficiency and capital allocation [18][50] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the business despite challenging market conditions and expressed confidence in achieving favorable outcomes in the upcoming tariff review [50][52] - The company is committed to maintaining a healthy capital structure to support ongoing investments and value creation for shareholders [21] - Management acknowledged the impact of external factors such as rising interest rates and regulatory changes on financial performance but remains optimistic about long-term growth [18][54] Other Important Information - The company is actively preparing for the Copel Day event, where it will present its strategic vision and investment plans for the future [12][47] - The migration to the Novo Mercado is expected to be completed by the end of December 2025, which will facilitate dividend announcements [24][25] - The company is exploring opportunities in battery storage and renewable energy projects, assessing their competitiveness in future auctions [38][39] Q&A Session Summary Question: What is the expected timeline for the migration to Novo Mercado and dividend announcements? - Management confirmed that the migration is expected to be completed by the end of December 2025, with dividends anticipated to be announced thereafter [24][25] Question: How does the company plan to continue reducing costs in the future? - Management indicated ongoing efforts to capture efficiencies, with a focus on specific business units and shared services to achieve cost reductions by 2026 [26] Question: What is the strategy for the Generation and Trading segments moving forward? - Management discussed the development of an internal expertise for trading strategies and emphasized the importance of hedging and market intelligence to maximize portfolio value [28][30] Question: What are the expectations for the upcoming tariff review process? - Management highlighted the significance of the tariff review, expressing confidence in exceeding market consensus and ensuring a favorable outcome based on past performance [50][52] Question: How does the company view the impact of MP 1304 on its operations? - Management acknowledged potential impacts from compulsory contracting but remains optimistic about the long-term benefits of hydroelectric products and competitive bidding processes [54][56]

Financial Data and Key Metrics Changes - The company reported a recurring EBITDA of 1.3 billion BRL, an increase of almost 8% compared to the same period last year [4] - Recurring net income was 375 million BRL, reflecting a decrease of 36.5% year-on-year due to increased negative financial results despite the EBITDA growth [18] - Total CapEx for Q3 was 981 million BRL, with year-to-date investments totaling 2.6 billion BRL, indicating a strong commitment to service quality and infrastructure modernization [4][19] Business Line Data and Key Metrics Changes - Copel Gen's recurring EBITDA grew by 11% over Q3 2024, driven by better asset performance and strategic asset consolidation [12][13] - The distribution segment (Copel Discom) saw a recurring EBITDA increase of 7.2%, supported by a 1.7% growth in the billed energy market and effective cost management [14] - Copel Com's recurring EBITDA dropped by 7.3% due to legacy contracts and increased expenses, although sales volume for 2026 to 2030 grew by 96.2% compared to Q2 2025 [15] Market Data and Key Metrics Changes - The sales volume reached almost 5 gigawatt-hours, with a market growth of 1.7% [6] - The PLD spot market increased by approximately 50% compared to Q3 2024, reaching about 250 BRL per megawatt-hour [6] Company Strategy and Development Direction - The company is focused on simplifying its portfolio, as evidenced by the divestment of four photovoltaic solar plants and the Baixo Iguaçu HPP [5] - A strategic shift towards a more integrated company with a solid presence across all four operational segments is emphasized [7] - The company is preparing for a historical tariff review in 2026, which is expected to be a significant milestone [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the business despite challenging conditions, including a GSF of approximately 65% and a curtailment of almost 35% [6] - The management expressed confidence in achieving a recurring net income target of around 18 billion BRL during the upcoming tariff review [47] - The company is committed to maintaining a healthy capital structure to support ongoing investments and value creation for shareholders [21] Other Important Information - The company is migrating to a simpler and more transparent shareholder structure, which is expected to enhance liquidity and attract new investors [10] - A new cultural framework was introduced, emphasizing the importance of culture in achieving long-term strategic goals [11] Q&A Session Summary Question: Confirmation on the completion of migration to Novo Mercado and dividend payout expectations - Management confirmed the expectation to complete the migration by year-end and indicated that dividends would be announced following the completion of the migration process [22][23] Question: Insights on cost efficiency and potential for further reductions - Management stated that they continue to seek efficiencies and anticipate further cost reductions in 2026, with specific initiatives planned [24][25] Question: Strategy for the Generation and Transmission segment and energy pricing - Management discussed the successful portfolio strategy and the importance of market intelligence in energy purchasing, indicating a focus on maximizing value [27][28] Question: Expectations for the upcoming tariff review process - Management emphasized the significance of the tariff review and the proactive measures being taken to ensure a favorable outcome [46][47] Question: Implications of MP 1304 on energy contracting and hydroelectric power plant renewals - Management addressed the potential impacts of MP 1304, indicating that while it may affect LR Cap dynamics, the overall impact would be manageable [49][51] Question: Discussion on extraordinary dividends and taxation implications - Management is studying the implications of potential taxation on dividends and is preparing a strategy to address this in light of the current shareholder base [55][56]