This article first appeared on GuruFocus .
Release Date: August 07, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Won Lot 7 of the NL auction with a projected 30% return and RAP/CapEx ratio of 12.4%.
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Received full installation license for the TAP project, allowing construction to begin on its largest project.
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Regulatory revenue grew 11.2% year-over-year, driven by REP adjustments and new assets.
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Regulatory EBITDA increased 6.5% year-over-year, reflecting operational growth.
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Paid interim dividends with a 48.9% payout ratio, returning value to shareholders.
Negative Points
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Net income declined from R$186 million to R$159 million due to higher financial costs and income tax.
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Financial results worsened by R$32 million, impacted by higher IPCA inflation on debt.
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Income tax increased due to the end of tax benefits and the start of TCE operations.
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Holding company expenses rose, partly due to PLR payments and international operations.
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Uncertainty in battery auction participation due to high competition and oversupply.
Q & A Highlights
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Q: What are Alupar's perspectives for Latin American auctions this year, and how is the company approaching the upcoming battery and transmission auctions? A: Luis Coimbra, Investor Relations Director, stated that Alupar is monitoring Latin American auctions but noted there are fewer opportunities this year, and the company requires a certain scale to participate given its existing structure in those regions. Regarding the battery auction, the company has registered some projects and finds it interesting, but will maintain strict discipline due to the high level of supply and registered amounts. The transmission auction in October is also being evaluated for opportunities.
Q: Should investors expect the higher holding company expenses this quarter to be the new cost level, including operations in Latin America? A: Luis Coimbra, Investor Relations Director, explained that the increase in expenses is partly due to the consolidation of all holdings outside Brazil, which impacted results. In Brazil, the main driver was the payment of profit sharing (PLR) from the previous year, which is a one-time item. This suggests the elevated level may not be the new baseline.
Q: Will the tax reform impact Alupar's revenues? A: Luis Coimbra, Investor Relations Director, clarified that while there may be a difference in gross revenue, the impact on net revenue is neutral. Any changes in tax rates are automatically added to transmission costs. For energy transmission, the company works with net tax amounts, and for energy contracts, taxes like PIS and COFINS are grossed up and extended over the years. Therefore, the company believes there is no impact on net revenue.
Q: What were the key highlights of Alupar's Q2 2026 results? A: Luis Coimbra, Investor Relations Director, highlighted several key points: winning Lot 7 of the NL auction with a 1.1 billion reais CapEx project in Sao Paulo, receiving the installation license for the TAP project (a 551 km line with 2.1 billion reais CapEx), and the ANEEL decision updating the RAP with a 4.72% adjustment for IPCA contracts. The company also paid interim dividends of 69.2 million reais, equivalent to 0.21 reais per unit.
Q: How did Alupar's regulatory and IFRS financial results perform in Q2 2026? A: Luis Coimbra, Investor Relations Director, reported that regulatory revenue grew from 851.58 million to 946 million reais, driven by RAP readjustments and new assets in operation. EBITDA increased from 680 million to 724 million reais. However, net profit declined slightly due to higher financial results (driven by higher IPCA) and increased income tax, as tax benefits for EPAC and ISN ended in Q4 last year.
Q: What is the status of Alupar's major construction projects? A: Luis Coimbra, Investor Relations Director, noted significant progress: the TCN project in Peru reached 79% completion (up from 28% in Q1) and is expected to become operational this year. The TACPI project at Centro Station is 90% complete in its second phase, with an additional RAP expected upon completion. The company also completed 100% of land acquisition for the Shaley project and 60% for another project in Peru.
Q: What is Alupar's current debt profile and dividend policy? A: Luis Coimbra, Investor Relations Director, stated that consolidated net debt closed at 9,499 million reais, with cash and equivalents at 5,371 million reais. The holding company has a net debt of 223 million reais. The company approved the distribution of interim dividends of 69.2 million reais (0.21 reais per unit) for Q2, with payment to shareholders on the record date of August 13th.
Q: How did Alupar's corporate net income perform in Q2 2026? A: Luis Coimbra, Investor Relations Director, reported that corporate net income grew by 55.4% to 1,627 million reais. This was driven by increased revenue, monetary correction of contractual assets (with IGPM inflation of 4.13% vs. deflation last year), and a significant increase in equity pickup from TNE, which had arbitrage results last year. EBITDA variation was offset by higher financial costs due to IPCA increases.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
