First Read: Eneva "1Q26 - Calling thermals" (Buy) Ajeje

Research evidence excerpt

First Read: Eneva "1Q26 - Calling thermals" (Buy) Ajeje

Global Research

13 May 2026ab

First Read

Eneva Equities

1Q26 - Calling thermals Brazil

Electric Utilities

12-month rating Buy

Overview

Eneva reported 1Q26 results with a EBITDA of R$1,435mn (adjusted by Jaguatirica's 12m price target R$30.50

contract impact of R$255.8mn). The higher regulatory dispatch, the start of the

Parnaíba IV TPP regulated capacity contract during 4Q25, the growth in the Sergipe

Price (13 May 2026) R$25.80

Hub and the early commencement of 2021 Auction regulated contracts for the Viana

and Geramaranhão TPPs positively impacted the results. Meanwhile, the RIC: ENEV3.SA BBG: ENEV3 BZ

termination of Povoação, Linhares and Viana I TPPs' regulated contracts produced a Trading data and key metrics

negative impact in consolidated results leading to a 6% EBITDA decrease YoY.

52-wk range R$27.59-13.16

Market cap. R$50.0b/US$9.97b

Current discussions on LRCAP

Shares o/s 1,937m (COM)

A legal and regulatory cloud emerged around the Reserve Capacity Auction of 2026

Free float 100%

(LRCAP) which is Eneva's most important value driver today. Brazil' federal

Avg. daily volume ('000) 14,556

prosecutors (MPF) are postponing the homologation of the auction until potential

issues raised by other players are analyzed (link). For Eneva, the stakes are high, Avg. daily value (m) R$355.1

since the company awarded 3.65GW of new capacity and 1.7GW of existing capacity Common s/h equity (12/25E) R$19.9b

in the auction. On the other hand, we see a positive discussion arising: companies P/BV (12/25E) 2.5x

having the possibility of purchase contracts from LRCAP in the secondary market Net debt to EBITDA (12/25E) 3.2x

(link) which could mean another opportunity of potential expansion for Eneva. EPS (UBS, diluted) (BRL)