Brazil Power Giant Earns US$204M in Third Quarter

BRAZIL ENERGY · EARNINGS

Axia Energia, the Brazilian power group once called Eletrobras, swung back to profit in the third quarter. Most of the swing comes from last year’s accounting loss, though a regulatory operating measure rose too, and the result fell short of analyst forecasts.

Brazil’s largest power group went from a deep hole to a clear profit in a single year. Axia Energia reported net income of R$1.11 billion (about US$204 million) for July to September 2026, in results released after the São Paulo market closed on Wednesday 4 November.

A year earlier the company, the formerly state-controlled Eletrobras before its rebranding, booked a loss of R$5.45 billion (about US$1.0 billion). Power bills touch every corner of Brazil’s economy, so the health of the biggest generator matters well beyond its shareholders.

Why a Loss Became a Profit

Last year’s loss was an accounting result more than a collapse in earning power. In the third quarter of 2025 Axia lost R$5.45 billion but still earned an adjusted R$2.17 billion (about US$397 million), a measure that strips out one-off items.

One of those items was an update to what the company owes Brazilian transmission firms, which cut profit by R$303 million (about US$55 million). The full list of one-off items for the latest quarter was not available to us at the time of writing.

All conversions in this article use about 5.46 reais per US dollar, the market rate on 4 November. Reported net income also eased from R$1.19 billion (about US$218 million) in the second quarter.

Is the Business Getting Stronger?

The picture is mixed. EBITDA, short for earnings before interest, taxes, depreciation and amortisation, is a rough gauge of operating cash profit, and the company’s adjusted regulatory version rose 8.4% to R$6.9 billion (about US$1.3 billion).

Net revenue came to about R$10 billion (about US$1.8 billion), less than 1% above last year. Profit rose mainly because last year’s accounting loss was not repeated, not because the company sold much more power.

Other measures were weaker. Adjusted profit, which strips out one-off items, was R$1.76 billion (about US$322 million), down 19.1% from R$2.17 billion a year earlier but up from R$1.61 billion (about US$295 million) in the second quarter.

On the company’s international accounting basis, adjusted EBITDA fell 23% to R$4.53 billion (about US$830 million). Net debt stood at R$47.57 billion (about US$8.7 billion), or 2.0 times regulatory EBITDA.

Over the first half of 2026 the company earned R$3.8 billion (about US$700 million). Adding this quarter, our own arithmetic puts the nine-month total near R$4.9 billion (about US$900 million).

Our report on the first quarter shows how the year began.

What It Means for US Readers

Investors who judge Axia by operating profit come out ahead, since that regulatory measure improved. Those who read the headline as new growth lose out, because the profit swing mostly reflects a weak comparison year and revenue barely moved.

Axia shares trade on São Paulo’s B3 exchange under the ticker AXIA3. They rose roughly 2% on Wednesday, before the results came out, so the market has yet to price them.

Interest rates remain the backdrop for any Brazilian utility. Our Selic guide explains the benchmark rate set by Copom, the central bank’s rate committee, and the next date to watch is the release of the minutes of its latest meeting on Tuesday 10 November at 6:00 a.m. ET.

What Is Not Known

Analysts polled by LSEG, a financial data firm, expected net income of R$1.5 billion (about US$275 million) and EBITDA near R$7 billion (about US$1.3 billion), so the result fell short. We have not seen Axia’s full list of one-off items for the quarter, and the market’s verdict will show in Thursday’s trading.

The company holds its results call on Thursday 5 November. Chief executive Ivan Monteiro, a former head of the oil company Petrobras, stays until April 2027 while a succession process runs.

Frequently Asked Questions

Did Axia Energia make a profit in the third quarter of 2026?

Yes. It reported net income of R$1.11 billion (about US$204 million) for July to September, against a loss of R$5.45 billion (about US$1.0 billion) a year earlier.

How did Axia’s operations perform?

Adjusted regulatory EBITDA, an operating profit gauge, rose 8.4% to R$6.9 billion (about US$1.3 billion). Net revenue was about R$10 billion (about US$1.8 billion), little changed from last year.

Sources: Axia Energia, results centre and third-quarter 2026 announcement (4 November 2026); Axia Energia, third-quarter 2025 results announcement; Axia Energia, material fact on the CEO succession process (May 2026); market data for the exchange rate.