Equatorial Energia (EQTL3.SA): Key takeaways from investor day + model update

Research evidence excerpt

Equity Research

20 August 2026 | 8:30PM BRT

Equatorial Energia (EQTL3.SA): Key takeaways from investor day +

model update

On August 20th, Equatorial hosted its investor day in São Paulo. Overall, management

continued to stress operational excellence, cost control, and disciplined capital

allocation, while remaining focused on turnaround of non-mature distribution

concessions.

We remain Buy rated on Equatorial and continue to view it as one of our

preferred picks in our Utilities coverage (alongside Axia and Sabesp), as we see

the company as a best-in-class capital allocator trading at an attractive

valuation of ~13% real IRR. We believe the recent deterioration in the macro

environment (wider rates curve) has been weighing on the stock given EQTL’s

high leverage (~4x ND/EBITDA pro forma) and this trend represents the main

short term risk for their equity story (micro fundamentals remain intact).

Bruno Amorim, CFA

+55(11)3371-0764 |

Goldman Sachs do Brasil CTVM S.A.

Guilherme Bosso

+55(11)3372-0205 |

Goldman Sachs do Brasil CTVM S.A.

Huama Belmonte

+55(11)3371-6972 |

Goldman Sachs do Brasil CTVM S.A.

We are also taking this opportunity to update our model following in line 2Q results.

Additional comments below:

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors

should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.

Investors should consider this report as only a single factor in making their investment decision. For Reg AC