Light S.A

What it is

Light serves 31 municipalities in the state of Rio de Janeiro, covering a region of more than 10 million people and 4 million customers — making it the sole electricity distributor for an area that includes most of greater Rio. Beyond distribution it also generates and trades energy, operating a portfolio of hydroelectric plants that serve the state.

The company was founded on 30 May 1905 in Rio de Janeiro by a group of Canadian and North American investors who had already established the São Paulo Tramway, Light and Power Company in 1899. It is one of Latin America’s oldest operating utilities.

Who owns it

Ownership has been turbulent. Investor Nelson Tanure became the largest shareholder, with a stake of around 30% through his fund manager WTN, after increasing his position in 2023.

His grip has since loosened sharply: in early 2026, creditors who had financed another of his ventures executed their guarantees, resulting in a significant reduction of his stake in Light; the debt involved was estimated at R$1.2 billion (US$233 mn), with creditors including BTG Pactual, Prisma, Farallon and Santander.

Tanure’s formal exit from the board came just as Light concluded the restructuring of R$11 billion (US$2.1 bn) in debt with 99.6% creditor support, and as the company prepared to renew its concession for 30 years. Institutional investors hold 68.1% of the register (EODHD); no single controlling bloc is disclosed in available sources following the Tanure exit.

Who runs it

Alexandre Nogueira remains CEO of Light S.A., a role he took on through the hardest phase of the debt restructuring. Stefano de Amorim Miranda was elected CEO of the key operating subsidiary Light Energia, while Leonardo Pimenta Gadelha took on the roles of CFO and investor-relations director of the listed parent, both with immediate effect in April 2026.

Gadelha brings over 20 years of financial markets experience, including spells at J.P. Morgan, Vale, and Prumo Logística, and served as CFO and IR director of Neoenergia between 2019 and 2026.

The board shuffle reflects the company’s effort to signal cleaner governance after years of ownership turbulence.

The money, in plain words

The TTM figures in the EODHD data blend a very good year (2024) with a weaker one (2025): on a trailing basis Light keeps about 17 cents of profit from every real of sales — a net profit margin of 17.1%, high for a utility — and for every real shareholders have put in it is earning back nearly 37 cents a year, a return on equity of 37.5%. Yet looking at 2025 alone, the annual accounts show net profit collapsed to R$213m (US$41m) against 2024’s R$1.64bn (US$318m), a swing largely explained by one-off debt-restructuring gains unwinding.

Revenue grew a modest 6.2% over two years to R$15.0bn (US$2.9bn) in 2025 (our calculation).

The bigger concern is the debt pile: Light carries net debt of R$9.87bn (US$1.92bn) against equity of R$5.45bn (US$1.06bn) — our calculation from EODHD balance-sheet data. Renewal of the distribution concession is expected to enable the capital restructuring and debt conversion set out in the reorganisation plan, which should reduce leverage.

The market prices the stock at just 1.5 times earnings — a price-to-earnings ratio of 1.5× — a level that says investors are pricing in risk, not rewarding recovery yet.

What it is doing now

Light successfully had its court-mandated reorganisation plan approved with the support of over 99% of creditors, leading to debt restructuring and cost reduction. To secure the concession renewal, Light will need to structure an investment package of R$12 billion (US$2.3 bn) over the next five years, requiring a substantial contribution from its main shareholders.

In its Q4 2025 results, presented in March 2026, Light reported a 7.2% year-on-year rise in its adjusted operating profit, reaching R$418m (US$81 mn) for the quarter. Service quality has also improved, with the CEO citing the strongest operational fundamentals in recent years and the best emergency response times in a decade.

What to watch

• Concession renewal. The distribution licence for Rio de Janeiro is the company’s single most valuable asset; its terms will set the revenue ceiling for the next three decades.
• Debt conversion. The reorganisation plan calls for debt to be converted into equity as part of the capital restructuring; the pace and terms of that conversion will determine who ends up owning Light.
• Ownership clarity. With Tanure’s bloc diminished and no declared controlling shareholder, the register is genuinely open — a signal of either opportunity or further instability, depending on who fills the vacuum.
• Energy losses. High levels of power theft and technical losses in the concession area remain a structural problem requiring solutions beyond current operational actions.

This is news, not investment advice.