COPEL Achieves Significant EBITDA Growth in 4Q25, Reinforcing Its Leadership in Brazil’s Energy Sector

Companhia Paranaense de Energia (COPEL) has announced a solid financial performance for the fourth quarter of 2025 (4Q25), reporting recurring EBITDA of R$ 1,358.1 million. This marks a significant 16.1% increase compared to the R$ 1,169.6 million recorded in the same quarter of 2024 (4Q24). The results underscore the company’s operational resilience, disciplined financial management, and continued strategic focus on efficiency and growth.

The improved performance reflects a combination of enhanced operational efficiency, optimized cost structures, favorable regulatory adjustments, and strategic investments across generation, transmission, and distribution segments. COPEL’s 4Q25 earnings further solidify its position as one of Brazil’s most influential and financially stable energy providers.

Strong Financial Performance in 4Q25

Recurring EBITDA Growth of 16.1%

In the fourth quarter of 2025, COPEL’s recurring EBITDA reached R$ 1,358.1 million, representing a year-over-year increase of R$ 188.5 million. This growth highlights the company’s ability to consistently generate operational cash flow despite macroeconomic challenges and market volatility.

The expansion in EBITDA was primarily driven by:

• Improved energy sales performance in the distribution segment
• Operational efficiencies across business units
• Better cost management and expense optimization
• Higher contributions from generation assets

This positive trajectory reflects management’s disciplined execution of strategic priorities and reinforces COPEL’s commitment to delivering sustainable financial results.

Operational Efficiency as a Key Driver

COPEL’s management emphasized that operational efficiency initiatives played a crucial role in boosting recurring EBITDA. The company continued to streamline processes, modernize infrastructure, and optimize resource allocation across its network.

Through digital transformation programs and automation technologies, COPEL enhanced service reliability while simultaneously reducing operational costs. These efforts translated into improved margins and stronger financial performance in 4Q25.

Performance Across Business Segments

Generation Segment Highlights

The generation segment delivered stable and consistent results during the quarter. COPEL’s diversified energy portfolio, which includes hydroelectric, wind, and thermal assets, contributed to reliable revenue streams.

Hydroelectric generation remained a cornerstone of the company’s operations, benefiting from efficient asset management and favorable hydrological conditions. Additionally, renewable energy initiatives continued to support long-term sustainability goals.

The company maintained strong availability rates across its plants, ensuring operational continuity and stable output.

Transmission Segment Stability

COPEL’s transmission operations also contributed positively to overall EBITDA. The segment benefited from regulatory revenue adjustments and efficient maintenance practices that minimized downtime.

The company’s transmission network remains a critical infrastructure asset, ensuring secure energy delivery across the region. Ongoing investments in modernization and grid expansion further strengthen the reliability of operations.

Distribution Segment Improvements

The distribution segment recorded notable progress in operational indicators. Improved billing efficiency, reduced energy losses, and enhanced customer service contributed to better financial outcomes.

COPEL continued to invest in grid modernization, smart metering systems, and digital customer engagement platforms. These investments not only improved operational performance but also elevated the customer experience.

Strategic Cost Management and Margin Expansion

Expense Control Initiatives

Cost discipline remained a central pillar of COPEL’s strategy throughout 2025. The company implemented rigorous expense monitoring systems and adopted lean management principles across departments.

As a result, controllable operating expenses were kept under strict oversight, helping to expand EBITDA margins despite inflationary pressures and external cost challenges.

Margin Improvement and Financial Health

The improvement in recurring EBITDA directly contributed to stronger margins in 4Q25. This enhanced profitability allows COPEL to maintain a solid balance sheet and sustain its investment pipeline.

The company’s focus on financial prudence ensures it remains well-positioned to navigate market uncertainties while continuing to deliver shareholder value.

Investment Strategy and Capital Allocation

Ongoing Infrastructure Investments

COPEL maintained a disciplined capital expenditure program aimed at strengthening its core infrastructure. Investments were primarily directed toward:

• Grid modernization and reliability enhancements
• Expansion of renewable energy assets
• Technological upgrades to distribution networks
• Transmission capacity improvements

These investments support long-term growth while ensuring compliance with regulatory standards and sustainability commitments.

Focus on Renewable Energy Expansion

Renewable energy continues to be a strategic priority for COPEL. The company has progressively expanded its portfolio of clean energy assets to align with global decarbonization trends.

By strengthening its renewable generation capacity, COPEL enhances its competitive positioning in Brazil’s evolving energy landscape and contributes to environmental sustainability.

Cash Flow Generation and Debt Management

Healthy Cash Flow Dynamics

The increase in recurring EBITDA strengthened operating cash flow during the quarter. Robust cash generation provides flexibility for capital investments, debt servicing, and potential shareholder returns.

COPEL’s disciplined financial management ensures that liquidity remains adequate to support both short-term obligations and long-term strategic objectives.

Prudent Debt Structure

The company continues to maintain a balanced debt profile, with attention to cost optimization and maturity management. By preserving a strong credit profile, COPEL safeguards its ability to access capital markets on favorable terms.

This financial stability reinforces investor confidence and supports future expansion initiatives.

Regulatory and Market Environment

Supportive Regulatory Framework

Brazil’s energy regulatory framework plays a significant role in shaping sector performance. COPEL’s adherence to regulatory requirements and proactive engagement with authorities has helped secure stable revenue flows.

Adjustments in tariffs and regulatory compensation mechanisms contributed positively to 4Q25 results.

Market Demand Trends

Electricity demand trends in Brazil remained relatively stable during the quarter, supporting revenue generation. Economic activity and industrial consumption provided a consistent base of energy demand.

COPEL’s diversified customer base further mitigates risks associated with sector-specific fluctuations.

Corporate Governance and Sustainability

Commitment to ESG Principles

Environmental, Social, and Governance (ESG) standards remain central to COPEL’s corporate strategy. The company integrates sustainability considerations into decision-making processes across all operations.

Initiatives include:

• Reduction of greenhouse gas emissions
• Expansion of renewable energy capacity
• Community engagement programs
• Strong governance frameworks

These measures enhance long-term value creation and strengthen stakeholder trust.

Transparency and Shareholder Communication

COPEL continues to prioritize transparent communication with investors and stakeholders. The detailed disclosure of recurring EBITDA and operational metrics reflects the company’s commitment to accountability.

Regular updates ensure that market participants remain well-informed about financial performance and strategic direction.

Outlook for 2026 and Beyond

Strategic Priorities Moving Forward

Looking ahead, COPEL aims to maintain its operational momentum and financial discipline. Key priorities include:

• Further optimization of operational efficiency
• Expansion of renewable generation assets
• Strengthening distribution reliability
• Enhancing digital transformation initiatives

The company is well-positioned to capitalize on emerging opportunities within Brazil’s evolving energy market.

Long-Term Value Creation

With consistent EBITDA growth and strategic capital allocation, COPEL demonstrates its ability to generate sustainable long-term value. Management remains focused on balancing profitability with environmental responsibility.

Investors can expect continued emphasis on financial stability, operational excellence, and growth-oriented investments.

Conclusion: A Quarter of Measured Growth and Strategic Progress

COPEL’s recurring EBITDA of R$ 1,358.1 million in 4Q25, representing a 16.1% increase year-over-year, reflects a well-executed strategy grounded in operational excellence and disciplined financial management.

The company’s diversified business model, robust infrastructure, and forward-looking investment strategy position it for sustained success in Brazil’s competitive energy sector. By combining efficiency, innovation, and sustainability, COPEL continues to reinforce its standing as a leading energy provider.

As Brazil’s energy market evolves, COPEL’s strong fourth-quarter performance signals resilience and confidence, paving the way for continued growth in the years ahead.

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