LatAm Utilities: 1Q26 earnings Wrap-up: shy earnings amid macro headwinds

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LatAm Utilities: 1Q26 earnings Wrap-up: shy earnings amid macro headwinds

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LatAm Utilities

1Q26 earnings Wrap-up: shy earnings amid

macro headwinds

Industry Overview

21 May 20261Q: ENEV & CPLE as positive highlights; SAPR as lowlight

We rank Eneva and Copel as the positive highlights within our quarterly 1Q LatAm Equity

Utilities earnings wrap-up. Eneva reported a 3% beat vs. BofAe but +12% vs. consensus, Latin America

related to the gas trading initiatives at the Hub Sergipe asset. Copel posted solid results Utilities

(+17% YoY), in line with consensus and 3% above ours due to better-than-expected

energy gross margin at power generation unit. We rank Sanepar as the lowlight (-7% vs. GustavoResearch FariaAnalyst>>

BofAe and -3% vs. consensus) on higher manageable expenses. Notably, some crowded Merrill Lynch (Brazil)

+55 11 2188 4295

names (such as AXIA, SBSP and EQTL) reported 1Q26 results that were shy of gustavo.faria@bofa.com

expectations, leading to some underperformance. Andre Silveira >>

Beat / Miss ratio at 0.67 (vs 0.71 in 4Q25) ResearchMerrill LynchAnalyst(Brazil)

We see a slight deterioration in the earnings quality, with the Beat/Miss ratio (adjusted +55 11 2188 4476 andre.silveira@bofa.com

by market cap) easing to 0.67 in 1Q26 vs. 0.71 in 4Q25. Highlights are mixed: on the

positive side, Copel stands out with 4 consecutive in-line results—reinforcing the view

that, “no news is good news” in terms of execution consistency; AURE also shows early Glossary:

signs of stabilization, delivering 2 in-line prints after 2 consecutive misses. On the

negative side, AXIA has now posted 2 consecutive misses, reversing the prior trend of 2 AURE: Auren Energia

beats; SAPR remains under pressure, with a streak of 4 consecutive misses. CEPU: Central Puerto