Centrais Elétricas Brasileiras S.A. – Eletrobrás

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What it is

AXIA Energia generates, transmits, and sells electricity across Brazil, drawing power from hydroelectric dams, wind farms, and solar plants, with hydroelectric capacity of roughly 43,000 MW and 67,000 km of high-voltage transmission lines. It is Latin America’s biggest power utility and the fourth-largest clean-energy company in the world.

The company was incorporated in 1962 as Centrais Elétricas Brasileiras S.A. — Eletrobrás and is headquartered in Rio de Janeiro. Shareholders voted in April 2026 to rename it AXIA Energia S.A., closing the book on one of Brazil’s most recognisable state-owned brands.

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Who owns it

The Brazilian federal government held a 52% stake until June 2022, when a landmark share offering privatised the company. No single shareholder can now control it: the bylaws create a capital base of BRL 70.1bn (US$13.6 bn) split into multiple share classes, with every shareholder or group capped at 10% of voting power.

A special class of preferred share gives Brazil’s Federal Government a veto over any attempt to remove those voting caps, preserving a quiet but real state hand. According to EODHD data, insiders hold roughly 34.7% of shares and institutional investors a further 45.9%, leaving a meaningful free float.

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Who runs it

CEO Ivan de Souza Monteiro was appointed in August 2023. He trained as an electronic and telecommunications engineer, built his career at Banco do Brasil, then served as CFO and later CEO of Petrobras in the final months of the Michel Temer government.

The CFO equivalent — Executive Vice President of Finance and Investor Relations — is Eduardo Haiama, reappointed in April 2025 for a mandate running to May 2027. The Board is chaired by Vicente Falconi Campos, a veteran Brazilian management consultant.

In May 2026, the Board formally launched CEO succession planning, as Monteiro’s term ends 30 April 2027.

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The money, in plain words

Sales grew modestly — from BRL 40.2bn (US$7.78bn) in FY2024 to BRL 41.3bn (US$7.99bn) in FY2025, a rise of 2.7% (our calculation). The company keeps about 22 cents of profit from every real of revenue — a net margin of 21.9% on a trailing basis — which is high for any utility anywhere in the world.

For every real shareholders have invested, the business earns roughly 7.9 back per year — a return on equity of 7.9%, decent but down from prior years as legacy liabilities weigh on the equity base. The stock trades at 12.3× earnings (a price-to-earnings ratio of 12.3×), a modest price for a company of this scale and market position.

The balance sheet carries a significant load: cash of BRL 16.4bn (US$3.17bn) against total debt of BRL 77.3bn (US$14.96bn), leaving net debt of BRL 60.8bn (US$11.77bn) — our calculation. Shareholders approved allocating BRL 6.56bn (US$1.3 bn) from 2025 results, noting that BRL 8.3bn (US$1.6 bn) in interim dividends were declared and paid during the year.

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What it is doing now

In early July 2026, AXIA won three lots in an ANEEL transmission auction, committing BRL 668 million (US$129 mn) in new infrastructure across São Paulo, Mato Grosso, and Mato Grosso do Sul. This continues a post-privatisation winning streak: after more than eight years without a new auction win, the company has secured lots in every year from 2022 through 2025.

In October 2025, AXIA agreed to sell its full stake in Eletronuclear — the nuclear subsidiary operating the Angra reactors — to J&F Investimentos’ Âmbar Energia for approximately BRL 535 million (about US$98 million), marking a deliberate exit from nuclear power. It also signed a deal to acquire the remaining 51% of Eletronet, which will give the group 100% of that fibre and data network subsidiary.

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What to watch

• CEO transition: The board has created a temporary executive vice presidency for Élio Wolff from June 2026 to manage operations during the handover, but the identity of the next CEO is not yet public — a key governance unknown.
• Debt reduction: BRL 60.8bn (US$11.8 bn) net debt (our calculation) is the single biggest constraint on shareholder returns; the pace of deleveraging will drive the share price.
• Class C share conversion: Class C preferred shares convert or redeem annually through 2031, with automatic tender-offer triggers if any holder’s voting stake passes 30% or 50% — a structural feature that could reshape the ownership map gradually.
• Brazil dividend tax: AXIA has already begun adjusting its capital-return strategy to preempt Brazil’s 2026 dividend tax, and how this is executed will affect net returns for all shareholders.

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This is news, not investment advice.